PriceCast Fuel: Strategic Business Agility

Different markets and different business strategies requires different approaches to pricing. This is why our intelligent fuel pricing system, PriceCast Fuel, is designed with the flexibility to deploy the right strategy for the local business. By applying Artificial Intelligence to transactional data, PriceCast Fuel determines the best possible price to achive the optimal business results. Listed below you find the three main fuel pricing strategies and how PriceCast Fuel secures their success.

 

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1. ADVANCED AI* PRICING

Pricing based on Artificial Intelligence is the ultimate strategy when the objective is to reach the absolute optimal balance between the volume and margin-budgets. Advanced AI pricing is based on learning algorithms to construct dynamic profiles of customers and their purchasing patterns, as well as competitors and their strategies on both micro and macro scales.

PriceCast Fuel’s AI module uses sophisticated methods for reasoning about uncertainty and dealing with incomplete data to mimic a flexible, almost human-like behavior.

These methods allow PriceCast Fuel to rapidly, intelligently, and continuously react to changing customer behavior, changing markets, and unexpected events. The automated and continuous observation of the complex interactions obscured in the data results in a system with superhuman expertise. That is the key to the superior performance of PriceCast Fuel compared to conventional, less adaptable systems.

*AI stands for Artificial Intelligence

 

2. RESTRICTED AI* PRICING

Restricted AI pricing is efficient when the strategy is to follow the competition with a variable tolerance distance. The strategy could be to allow a tolerance spread from the competition on e.g. plus or minus 1,5 eurocent and then let the AI Optimization Module find the optimal price within this spread. If the strategy is never to be more expensive than competition, the tolerance can be one-sided e.g. plus 0 and minus 3 eurocent. Then the AI module will find the optimal price, just below competition, but still with room for optimization – according to volume and margin objectives.

Restricted AI is a modern and much more dynamic and efficient alternative to conventional price elasticity systems. Where conventional price elasticity is based on static algorithms that have to be recalculated on a regular basis to ensure up-to-date accuracy, restricted AI will in its nature always be self-updating and thereby dynamically staying in close contact with the market. 

*AI stands for Artificial Intelligence

3. STRATEGIC RULE BASED PRICING

Strategic Rule Based pricing is the traditional choice when the business strategy simply is to base the pricing decision on a set of business rules and restrictions. The rules can be linked to a long complex list of input e.g. competitor prices, volume sales targets, time, margin, psychological filters etc.

Often Strategic Rule Based pricing can be a simple and yet very efficient pricing strategy if the brand image of the network ex. is:  “We are always the  cheapest alternative”.

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