KSS Fuels Incorporates Gross Profit Percentage
New measure helps refine fuel pricing tactics, track performance
FLORHAM PARK, N.J. -- Industry leader KSS Fuels (soon to be doing business as Kalibrate Technologies) has announced that gross profit percentage (GP%) is now incorporated into its day-to-day fuels pricing process. The additional functionality facilitates price generation and analysis based on GP%, alongside traditional cents per gallon (CPG)
"We are proud to be joining industry thought leadership in not only measuring fuel profitability beyond the traditional CPG but also using GP% in our comprehensive pricing rule set. It's clear that GP% provides deeper insight into fuel and overall site profitability for the savvy retailer, and that is why we have made it a top priority to react quickly to these changing needs," said Bob Stein, president and CEO of KSS Fuels.
As part of its GP% initiative, KSS Fuels recently added the metric to its PriceNet product suite; reporting and dashboards will now display fuel profitability by CPG, gross margin (in any currency) and GP%. In addition, PriceNet will have the capability to generate and validate prices based on GP%. These important additions will provide a further lens for retailers to view fuel profitability using the same accepted method they use for every other product sold in their convenience stores and ensure that the appropriate GP% is achieved by the retailer. Applying a consistent metric will provide insight into the real return from fuel compared with other products and, potentially, facilitate different pricing methodologies as this measure becomes more widely accepted.
"A number of key fuel retailers are proposing the adoption of GP%," Stein said. "The industry has spoken about unit margin for such a long time that it's naturally going to take a shift in thinking for GP% to be accepted. As a leading retail fuel pricing provider, however, we will continue do all that we can to support this important initiative."
Quinn Ricker, president and CEO of Ricker Oil Co. in Anderson, Ind., said, "I am pleased to see that KSS Fuels has reacted quickly to the needs of our industry and augmented its comprehensive business intelligence capabilities and fuel pricing tactics by adding gross profit percentage as a key performance indicator. This will help me as I continue to look at new and improved methods of analyzing the success of my business."
KSS Fuels, renamed Kalibrate Technologies, is a global leader in fuels pricing and retail location intelligence, with proven software, analytics and consulting solutions. Clients benefit from having a single, integrated source for the data-driven intelligence necessary to optimize pricing strategies and evaluate and manage retail network locations. KSS Fuels has headquarters in Manchester, U.K., and Florham Park, N.J. The company also has a Center of Excellence in Tulsa, Okla., and sales operations in Florida, Illinois, Ohio, Texas, Canada, Brazil, China, India, Japan, Korea and Africa.