The Challenge
EdgePetrol has been working closely with Phillips 66 in the UK for over three years. Owners of Jet brand, they have a network of over 300 dealer and company-owned sites.
Prior to using EdgePetrol for their company-owned estate of 12 stations, pricing at Phillips 66 was carried out with a uniform strategy and a set differential when pricing premium grade fuel. With the market increasingly volatile and volumes unpredictable, increasing profitability without the right visibility was risky. Fuel could be under or over priced, leaving money or volume on the table. It was therefore vital to understand the sensitivity of each site.
The Solution
With access to real-time accurate volume and margin data on the EdgePetrol app, Phillips 66 worked with EdgePetrol’s Customer Success team to build a three step process to analyse, understand and execute a new strategy and identify the sweet spot of premium grade pricing.
Step 1 – analyse and identify test sites – Phillips 66 were able to analyse Super Unleaded’s performance on a site by site basis. Using data directly from EdgePetrol, they were able to understand how performance varied on each site and identify which sites would be best for us to run a pricing trial on.
Step 2 – introduction and monitoring of new strategy – after successfully identifying trial sites, Phillips 66 conducted a 14 week trial period, with regular meetings to monitor and assess the impact of the changes across their trial sites. They monitored transaction count, average fill, overall litres sold as well as grade penetration, giving a robust and well rounded picture of local markets and shifts in performance.
Step 3 – identify sweet spot and roll out – after monitoring and analysing data, Phillips 66 were able to identify pricing strategies that had performed exceptionally and achieved the desired outcome. These strategies can now be rolled out across the entire Phillips 66 estate in the UK, sending prices directly through the EdgePetrol app to their site managers.
The Results
The Phillips 66 team were effectively able to identify the perfect price point for premium grades across the entire Phillips 66 UK estate. As a result, profit for premium grades increased significantly, without impacting volume by more than 5%.
