Convenience stores, grocery stores, service stations, and big box retailers are finding fuel a tough business to achieve and maintain healthy margins. It's so difficult that many convenience stores, for instance, where fuel comprises roughly 70% of total revenue, focus primarily on in-store profit centers, abandoning fuel as a profit driver for the business. Why is the fuel retail business so difficult? Here are a few of the reasons:
- Fuel costs are volatile causing difficulty in coordinating purchases with margin goals
- Fuel pricing at the pump is highly competitive causing margin pressure
- Manual processes and decisions based on inaccurate, out of date, or no data increase fuel costs unnecessarily
- Retailers still view fuel as critical to their business in large part because it drives foot traffic into stores
- Retailers view even modest margins though as a great success
How Does Insite360 Help?
Insite360 provides software and services that optimize fuel operations for retailers driving down costs and providing greater control and visibility into the true cost of fuel. Insite360 restores healthy margins and makes retailers more competitive at the pump. Retailers who use Insite360 view fuel as an important profit center to their business and realize they can turn fuel market volatility into an opportunity. Insite360 retail customers are a who's who in the industry including 7-Eleven, Brookshire Grocery Company, Couche-Tard, Cumberland Farms, Hub City Convenience Stores, Hy-Vee, Palace Truck Stop and Casino, Meijer, and more. With Insite360, retailers gain the following:
- Reduced run-outs, retains, and invoice under- & over-payments
- Optimized fuel inventories, security of supply, and lower working capital requirements
- Centralized, transparent, and lowest-cost fuel procurement
- Environmental and regulatory compliance.