Demand for forecourt services protects revenue streams
DEMAND for a range of services from forecourt sites has seen more retailers see the benefit of a fully managed model.
That is according to Air Serv who said that its partnership with Asda has spelled success for the supermarket’s forecourt locations across the whole of the UK.
Operating around 800 forecourt locations across the UK, Asda has seen a demand for air and vacuum services, jet washes and rollover car washes across its locations. This has been a key instrument not just in the customer experience, but to also build an important revenue stream for the supermarket.
And when this translates to a smaller operation in the convenience channel, the same model of operations could be viable reckons Air Serv.
The forecourt services firm has recommended retailers to consider moving away from the traditional equipment ownership and operation models in favour of a shared revenue approach with their chosen partner.
Rather than requiring the upfront cost or fixed rental fees, Air Serv offers a revenue share model which sees the firm install, operate and maintain forecourts at no cost to the retailer. Instead, the revenue that is generated from the machines is then shared between both parties.
This model runs across Asda forecourt locations with Air Serv’s services in place and has served the supermarket’s stores well, according to Stuart Peel, petrol trading operations manager at Asda.
He said: “Put simply, this creates exactly the right incentives. It’s in Air Serv’s interest to make sure the machines are running at their best because uptime benefits both sides.”
This fully managed approach has been designed to minimise the administrative load on forecourt retailers and staff members across the site and is instead handled by Air Serv staff.
This includes maintenance, servicing, cash collection and chemical top-ups meaning store teams won’t need to handle these processes or need access to the necessary equipment and training to carry this out.
Additionally, the use of smart tech allows Air Serv to closely monitor sites remotely in the case of any issues or faults with the machinery.
Peel said: “If a machine has recorded any sales, it’s flagged straight away. They’ll contact the site, investigate and, if needed, send an engineer.
“Colleagues aren’t going to the far end of the car park to collect cash and potentially put themselves at risk. Removing this security vulnerability is a big weight off our minds.
“And it allows Asda colleagues to focus on delivering a great in-store experience.”
Richard Sweet, managing director at Air Serv, said: “Aligning incentives through a revenue share model has been a win-win. Our offering has evolved with Asda and we’re continuing to enhance their forecourt operation.”
