So you’ve got EdgePetrol and now have all the information and insights you need to monitor station performance at your fingertips. But to take your EdgePetrol usage to the next level, you should consider testing new pricing strategies. This can seem daunting, but this guide will break down the steps and make it testing new pricing strategies easy.
Why you should test new pricing strategies
The market is constantly changing, and consumer shopping behaviour with it. The fuel retail market is entirely different now than it was even two years ago, so if the market is different, there is no guarantee that what worked then is going to work now. Changing conditions requires a changing strategy to keep pace. The transition to electric vehicles and the cost of living crisis is posing a threat to your business, and the only way to stay ahead of this and ensure you can keep investing in your business is to adopt new strategies that align with your long-term goals.
How to test pricing strategies
This page has links to a variety of pricing strategies that have been used by many EdgePetrol customers to grow volume, margin or profit. However, before you implement those, you need to understand the fundamentals of testing new strategies.
To make this easy, you can use the STARK framework.
S – Set
T – Test
A – Assess
R – Refine
K – Keep
In this framework:
Set: Clearly define your pricing objectives and set specific goals for your pricing strategy. Do you want to grow volume or margin? Which grades are you targeting? What do you want to achieve from running a new pricing strategy? These questions need to be answered before deciding which strategy to try.
Test: Implement the pricing strategy to test its effectiveness and gather real-world data and feedback. If you have multiple sites, you could pilot the strategy on a smaller number of your sites.
Assess: Assess the results and impact of the pilot pricing strategy, analysing key metrics and customer responses. You can monitor the success of a new strategy both in real time and by looking at historical performance within the EdgePetrol platform.
Refine: Refine your pricing strategy based on the assessment, making necessary adjustments and improvements.
Keep: Continuously monitor and track the performance of your refined pricing strategy, and make ongoing adjustments to ensure its success and alignment with your objectives. Keep successful strategies, and discard unsuccessful ones.
By using the “STARK” framework, you can systematically approach pricing strategies, test their viability in the real world, assess their impact, refine them based on data and feedback, and consistently keep them optimised for maximum effectiveness.
