If your livelihood depends on buying or selling fuel, then you know how volatile the market can be. And you understand that access to timely information is crucial for your success. Robust rack pricing data is critical to help you stay on top of price changes and maximizing your profit margin.
Rack prices change multiple times each day, and keeping track of the information by yourself is a full-time job. Contact DTN for a free demonstration to see how FastRacks® will boost your bottom line.
How Do I Know If My Rack Pricing Data Is Sufficient?
The fuel industry is not for the faint of heart. It requires quick decision-making and constant alertness. You know how thin the margins can be in your business. You can improve those margins when you have access to the best data possible.
Here are five signs that you may not have the best rack pricing data possible.
1. Your Rack Data Isn’t Real-Time
Fuel rack prices can shift several times every day without warning. Solutions that offer immediate notification by text or email whenever a price change occurs are vital to your ability to thrive. Having that information instantly at your fingertips means you can make decisions fluidly throughout your day to protect your profit.
Your up-to-the-minute alerts should also include a detailed analysis of all rack price changes that have happened during the day. You get a competitive edge when you see prices trending in real-time. Access to current data is essential.
When you have accurate data that arrives instantly, you can stay a step ahead of the competition. You have the ability to act rather than react. This level of data puts you in the driver’s seat.
2. No Expert Insight
To have the most accurate and actionable data each day, you want access to expert analysis. Ideally, your rack pricing data will include an analyst’s review. This information should come from an expert who examines the activity of fuel futures markets each day after they close.
A daily summary prepares you to make decisions before the next day’s market opening. You’ll be steps ahead while your competitors are busy getting their daily strategy together.
3. You Can’t Customize Your Rack Data
If you rely on traditional sources of information, you could be left to sort through mountains of outdated or irrelevant data. You need a customizable solution that allows you to get only the information that is vital to you. You also should be able to choose the time that works best for your schedule to receive that information. You don’t want to waste another valuable minute sorting through useless data that doesn’t serve you.
To make your job easier and more profitable, look for a rack pricing solution that streamlines the data you use the most. Products that group your preferred terminals in one report keep you a step ahead of the competition.
When protecting your bottom line, it’s crucial for you to have customized data, not a one-size-fits-all product.
4. No Access to Historical Pricing Rack Data
Real-time data is critical in the fuel industry. But historical information can be just as important, and not every rack pricing product offers that. With archived reporting, you can review your pricing past quickly and can also look at the history of the overall market and specific competitors.
This option gives you an indication of where the market is headed, based on historical trends. With that information, you’re prepared to maximize profit opportunities.
Look for tools that provide a wealth of historical information, including access to three full years of spot market and supplier price history. Further boost your abilities by making sure your data includes both branded and unbranded gasoline, diesel, ethanol, and propane.
That information helps you to identify ongoing trends and make better predictions about the direction of the market. An early market change signal is of ultimate value when it comes to planning your price setting.
5. You Can’t Modify Your Strategy Midday
If your current data doesn’t provide you with position analysis, it’s likely holding you back. At any point on a given day, you need to see where you stand in the broader market. This view is an excellent tool for planning your intraday price changes to entice buyers successfully.
To adjust your strategy as needed, you also need to keep an eye on changes in competitor pricing. When you find a tool that accomplishes this and offers expert advice from analysts, then you can stay ahead of other fuel sellers.
Look for Accurate, Relevant Rack Data
The fuel trading industry is too fast-paced to take a “wait and see” approach. You need accurate information at the swipe of your finger.
A solution that delivers actionable, data-driven insights helps you grow your business. It identifies trends and opportunities for executing or modifying your daily strategies, as needed.
When you’re considering which rack pricing data to use, look for a product that offers these benefits:
- Actionable insights to streamline your decision-making process
- Comprehensive reports that cover hundreds of terminals across North America and provide information on over 800 products
- Immediate price updates as suppliers make moves and change prices
- Highest level of accuracy for pricing information
- Snapshot pricing reports that arrive on a scheduled basis throughout the day
- Market closing reports that let you have a plan in place before each day’s market opening
- Data experts to provide you with reliable information and advice
- Fully customizable alerts and insights that can go to various members of your team, as applicable
- A straightforward pricing picture in the context of historical trends and current market conditions
- Ability to compare your prices with the competition quickly and easily
- Data that arrives in the best format for you
Become an Industry Leader
The team at DTN is here to help you stand out from the competition. Our rack data allows you to buy and sell with confidence and protect your bottom line. Let us give you a customized tour of our rack data so that you can see for yourself.