Unleaded 88, a 15% ethanol blended fuel, has many advantages resulting in more and more motorists adopting it as their preferred fuel. It boasts lower carbon emissions than fossil fuels, has engine-friendly performance, and costs less than regular gasoline.
Retailers see their share of benefits from Unleaded 88, too; selling Unleaded 88 drives sales across categories, increases customer loyalty, and boosts margins overall.
Comparing costs
Motorists already love the savings that come with switching to Unleaded 88, with some drivers saving almost a dollar per gallon at the pump. For retailers, the lower wholesale cost offers an opportunity to set prices according to strategic goals for their stores.
“That’s one of the competitive advantages of Unleaded 88 [E15],” said Jake Comer, vice president of Market Development at Growth Energy. “Historically, a retailer can purchase Unleaded 88 for less than they can an E10 blend. On average, they price Unleaded 88 16 cents less than regular gasoline [per gallon] on the street. Some retailers are using the lower price to drive customers into their stores, while other retailers are using Unleaded 88 as a fuel profit center. Both approaches work.”
Sales-driving power
Consumers choose Unleaded 88 for multiple reasons beyond price alone—and understanding the motivations behind these purchasing decisions can help retailers convert and retain more loyal Unleaded 88 customers.
“Some retailers have customers who are very environmentally conscious but not as price sensitive as some other consumers, or customers who are farmers that want to support U.S. agriculture. Understand your customers and do what’s best for them and your business,” says Comer.
Growth Energy works with retailers throughout the entire process of assessing if Unleaded 88 is right for them, determining onsite equipment compatibility, applying for government grants, and improving their sales approach.
“We can talk go-to-market strategies,” says Comer. “For example, we know Unleaded 88 can help drive retail sales—whether it be cold vault, prepared food, beer—for stores that use it and market it accordingly.
Overall, Unleaded 88 affords greater flexibility for retailers to fine-tune their pricing strategies. Growth Energy has experience marketing Unleaded 88 in multiple ways – reach out to them if you’re a retailer interested in learning more.
This post is sponsored by Growth Energy