Change prices simply and with confidence:
Being able to change fuel prices remotely, from anywhere in the world, helps you get the greatest margins out of the fuel and merchandise being sold at your stores. Be it: changing prices during rush hour, raising prices in order to make a low tank last longer or testing whether a reduction in prices will bring more people into the store front. There are many reasons to want to incrementally change the price of gas at your station many times during any given day.
In a typical store the process of changing the price relies on the store manager receiving a request to update the price of gas and implementing that request, hopefully in a timely manner. Store managers frequently have a lot to do, and may or may not have enough free time to check for an e-mail from you asking them to update the prices or even to simply answer the phone. This can mean the time to update fuel prices takes hours, some stores simply change the price no more than once a day so the manager can make sure to focus on it the same time every day. Given the difficulty in coordinating price changes with multiple store managers fuel prices at stores tend to remain stagnant for long periods of time, forgoing opportunities at higher margin fuel sales or greater foot traffic.
Industry studies have shown that optimizing your pricing strategy can lead to margin gains of up to 5%. In order to benefit from that increased margin you need the ability to update the prices at your store frequently and with confidence. This is where AAT Live fits in, we give you the ability to update prices at your station from your home, office or on the road as many times as you need during the day. We will handle confirming that a price change has taken place and can even notify the store manager so they stay in the loop.
Learn more about your station’s customers:
Having the ability to confidently change prices remotely will give you the ability to experiment with different pricing strategies. Allowing you to learn more about what is important to your customers and what pricing they are going to be willing to absorb. Some pricing strategies are obvious: matching or undercutting your competitor, changing prices during rush hour, raising prices to slow traffic when a tank is low, etc… But there are always opportunities to learn what it is your customers want. Say for example you want to know if try decreasing prices at a store when a local concert is letting out will increase store traffic? Does weather have an affect on prices? Maybe you want to watch and see how much of an affect having the price a couple pennies more than the closest competition will have, maybe it won’t be a big deal, maybe the higher price will offset any loss in traffic. Is the opposite is true? Do lower prices than a nearby competitor bring in enough foot traffic to offset the lower margin. Maybe a price change of a few pennies has no affect on the traffic or fuel volume, though likely only within a tight tolerance.
As importantly you can test the price sensitivity of the customers at the various store locations. Some locations may have less competition meaning customers have less local options those store customers may be willing to absorb greater prices for fuel at peak traffic hours. Other stores may have more competition but be easier to get to based on the street configuration where they are located. There are a lot of possible factors involved in pricing strategies, and those factors will change over time.
Being able to dynamically change the prices at a store allows gives you the room to run small experiments at a station or even regionally at more than one station in your network. This kind of flexibility is going to allow you the room to learn more about your customers.