EdgePetrol on fuelling growth through software
WE may live in a material world, but when it comes to forecourt retailing, decisions are increasingly driven by data.
The multiples will be examining their own fuel data to ensure the optimum balance between volume and margin, which means independents that do not invest in technology themselves could be left behind.
Pricing software provider EdgePetrol reckons it has the perfect solution for independent retailers.
EdgePetrol’s software offers retailers access to live volume and profit data, weighted-and-blended margins and tank-level forecasting – providing opportunities for new pricing and procurement strategies, according to chief revenue officer Mark Truman.
“The more you understand your site or sites, the better your decision making will be.
“This is why software in retail is very focused towards unlocking the amazing data that sits within a convenience store, whether that is your point of sale or dedicated pricing intelligence tools like EdgePetrol.
“Most retailers are experienced and have a great gut feel for how a station will respond to the changes they make.
“Valuable software enhances this decision making and, in the case of EdgePetrol, has led to profit increases on fuel upwards of 16%,” he said.
Founded in 2017 by a former petrol retailer, EdgePetrol works with over 1,000 forecourts across over 100 retailers in the UK – including almost half of the top 50 UK independents, as well as on the company-owned estate of four oil suppliers.
Truman said that in the last year, EdgePetrol has seen more smaller retailers reach out to the firm, which he said was an attempt to “combat the market consolidation that has taken place.”
According to Truman, the key benefit of investing in EdgePetrol software is “improved profitability.”
It’s also a straightforward process according to Truman, who highlighted EdgePetrol’s automation and customer support as key benefits for retailer customers.
“With no manual entry, an EdgePetrol user can log in to the system and see instantly whether they need to make a change and have all the information they need at their fingertips to optimise the results of that change.
“EdgePetrol’s customer success team is also on hand to provide guidance on the best practices and strategies that have been successful for sites with similar profiles.
“This high-touch approach is of huge value to our users, with super grade strategies increasing profits by 20% and amazingly two site sensitivity trials showing over 100% in volume increase,” he said.
For retailers seeking a flavour of the sort of advice EdgePetrol may offer, Truman revealed what he reckons are some of the key considerations when it comes to fuel price strategy.
“The most important thing is to not only follow the competition. Whilst competition should be a factor, it is only one pillar of five in optimising profitability from fuel. Volume, margin, profit and execution also need to be considered.
“For example, one retailer we work with in the North of England had always followed the nearby aggressive supermarket down as soon as they moved.
“What they didn’t realise is that they had a very different customer, and that the best indicator for them of the impact of their decisions was actually volume.
“Tracking the live volume on EdgePetrol, they realised that only after two days was their volume impacted by not following, giving them two days of additional margin they were not getting before.
“This resulted in 18% in profit increases over an entire year,” he said.
