NASHVILLE, Tenn. -- Retailers attending last week's annual NACStech conference put on by the National Association of Convenience Stores (NACS) were exposed to a wide array of new software applications that could help them do their business bettereverything from labor scheduling to fuel pricing.
On the topic of fuel pricing, Bob Johnson, a former director of fuel operations for Dallas-based 7-Eleven Inc. and currently with Florham Park, N.J.-based KSS, led a discussion asking retailers attending the session if they thought pricing was an art or a science. [image-nocss] I think it's a little bit of both, he said to the crowd of about 150.
Many retailers base their prices on their competitors, Johnson told the group, but that practice can leave a retailer's destiny up to the whims of the competition. He noted an example of how one retailer can see an advantage in taking his posting up to $2.96. Meanwhile a competitor down the road who sees the change, decides he'll stay at $2.95 because he doesn't have a 6 to post on his sign. It sounds crazy, but I've seen it happen, Johnson said.
He cited another case where retailers have lost volume not because a competitor in the area has a lower price, but a competitor outside the normal competitive zone has decided to lower his posting.
Over the long run, Johnson suggested that retailers price not by margin, but by volume. Knowing seasonal volume numbers can help a retailer more effectively determine street price. If you base your price on margin, you don't know [how effective] your decision is until it's too late, he said. However, volume pricing is more stable.
While he suggested that pricing software is not a panacea, having such software can help with calculations, especially when large numbers of stores are involved.
Other sessions at the c-store technology conference covered labor scheduling. Carolyn Doll, a consultant with Park City Group, Park City, Utah, asked retailers to think outside the box of shifts and to imagine scheduling based on the demand for labor. She said that doing so may lead to scheduling more people at peak times and spreading out ongoing tasks during slow periods.
When a retailer asked about where one should start with labor-scheduling software, co-panelist Elysa Sugarman, product specialist, BlueCube Software, Alpharetta, Ga., said starting with software that will make sure employees are checking in and working when scheduled is a solid jumping-off point. This can immediately help you cut down on overtime, she said.
Beyond discussing software applications, other NACStech speakers addressed industry issues. Gray Taylor with NACS spoke on association efforts to curb growing credit-card fees. He said recent initiatives with the Merchant Payment Coalitionof which NACS is a founding memberhave brought together retailers from many channels to initiate legal action against the major credit-card issuers. He compared U.S. credit-card fees to those charged in countries such as Australia and said the rates that retailers here are facing are out of control.
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