Nothing can Build Sales and Profits like Adding Fuel!
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- Gerard Pitts
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3 Nothing can Build Sales and Profits like Adding Fuel! Supermarkets have proven that adding fuel builds sales and profits better than anything else that can be done. Adding fuel also helps maximize property use, attract new and additional traffic, and adds an additional profit center to the bottom line. The fuel center with fuel rewards is truly an unbeatable tool that can enable retailers to compete at the highest level with creativity, quality, and a product that all customers require. Many supermarkets are able to increase store sales at an astonishing rate with an aggressive reward program. Our average supermarket customer has increased store sales with an on-site fuel center and fuel rewards program by 9% in the first year. The most amazing fact is that many retailers see these kind of increases in supermarket sales for multiple years following the opening of their fuel center. Duncan Oil specializes in building fuel facilities and supplying fuel to the retail supermarket industry. Our staff is dedicated specifically to the needs of the independent supermarket owner. We provide a turnkey fuel center construction program for retailers interested in adding fuel to their site. The program consists of a site review, economic forecasting, engineering, building, fuel supply, fuel management, fuel center support, and marketing. Duncan Oil has been able to leverage our high fuel volume and number of customers to enable us to offer all of our fuel center accounts top tier gasoline and diesel products at a low, competitive price. Together, with assured supply, an extremely cost effective logistics program, and real-time regulatory reporting, the overall Duncan Oil offering proves each day why it is the industry leader sought after by wholesalers and retailers across the United States.
4 Supermarket Fuel Center Opportunities Statistics via Energy Analysts International, Inc.
5 Supermarket Fuel Center Growth Trends Site Population Approx. 5,000 Hypermart retail fuel centers Approx. 3,000 Supermarket fuel centers Growth Rate Projected 15 new Hypermart retail fuel centers built per month Hypermart Market Share Nearly 17 billion gallons of fuel sold annually 11.6% of all fuel sales come from Hypermarts Expected to continue growth to 14% market share by 2015 Statistics via Energy Analysts International, Inc.
6 Supermarket Fuel Center Growth and Distribution Statistics via Energy Analysts International, Inc.
7 Supermarket Fuel Center Growth Trends Current nationwide trends are enabling growth within the Hypermarket industry: U.S. gasoline production capacity surplus continues to grow. Aggressive wholesale and spot markets provide a lower-cost product. Unbranded and Private Label gasoline sales continue to grow with widespread acceptance. Higher fuel prices drive traffic to Hypermarts with the perception of lower prices. Supermarket Rewards/Loyalty programs incentivize your customers to purchase from your fuel center, as well as spend more in your store to save more. Statistics via Energy Analysts International, Inc.
8 Increasing In-Store Sales Marketing Options Market Basket This method provides a cents off reward for the customer s total supermarket purchase amount. Individual Item Reward This method provides cents off rewards for specific items purchased within the supermarket. Market Basket and Item Combined Successive programs with one option being a primary marketing method and one being used as a special excitement builder.
9 Promoting Your Program
10 Market Basket Rewards Examples you could use to increase your in-store sales include: 5 cents off per gallon with a total purchase of $ cents off per gallon with a total purchase of $ cents off per gallon for every $5.00 in total purchases
11 Individual Item Rewards Item rewards allow you, the retailer, to offer greater overall savings per gallon to customers who purchase the items with reward amounts attached, likely on higher margin items. Item rewards allow you to control profits by only offering rewards on items that you choose.
12 Comparing Marketing Options Adapting Your Program Market Basket Not easy to adjust the program. Customers can easily see if you change the amount of the market basket reward to reduce or expand the fuel reward expense. Individual Item Reward You can easily control gross profit on each item. You can dial in or dial out the number of fuel reward items and/or reward amounts on each item to adjust the program s aggressiveness. Market Basket and Item Combined Market basket rewards are ongoing, but the item rewards can be manipulated based on your gross profit budgets and aggressiveness towards sales.
13 Promoting Your Program
14 Comparing Marketing Options Vendor Support Market Basket No support from vendors used in this method. Funding of the rewards relies solely on you, the retailer, and your increased sales. Individual Item Reward Some of the vendor provided support and money can be channeled towards incentivizing certain item rewards. Market Basket and Item Combined This marketing option will utilize the most aggressive vendor monies to select the incentive items that will bring the additional excitement to your market basket method.
15 Promoting Your Program
16 Merchandising and Promotions To promote your Supermarket, you can: Advertise your fuel reward program in your weekly ads as well as on all forms of media Offer discounts off per gallon for gas transactions paid with cash Use alternate programs as a special promotion to drive sales. Offer a limited time market basket promotion if your primary program is item rewards, or vice versa. Offer a Super Fuel reward item 50 cents off per gallon when you buy 3 of
17 Promote Your Fresh Meat With Fuel Rewards Family Pack meat is easily, and more importantly, profitably promoted with a fuel rewards marketing program. Large cents off offerings can be found with the larger ticket items. Price your family packs at near full retail, and then give a large fuel reward to incentivize a purchase.
18 Promoting Private Labels and Specialty Items Private Label and Specialty Items often offer higher gross profits to work with when choosing an item for your cents off per gallon reward. Not necessarily fast sellers, fuel rewards can grow your Private Label and Specialty sales. By adding fuel rewards on these items, your shelves will have more tagged items and your program will impress shoppers with the number of tags and discounts they see while shopping.
19 Promoting Your Program
20 Benefits of the DOTS Program for Supermarkets
21 DOTS Provides a Complete Turnkey Fuel Center Program Site Review and Economic Forecasting Designing, Building Fuel Center Fuel Supply Fuel Management Fuel Center Support Fuel Marketing
22 Site Review and Economic Analysis DOTS ensures the following preliminary requirements are met before building: Viability of your fueling location Analysis of competition in the area Traffic flow EPA review ROI economic analysis
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24 Designing and Building Your Fuel Center DOTS provides ease of mind during the building process, by offering you a complete Turn-Key fuel center, including: Complete Engineering and Design Pre-Engineered Site Layouts Preferred Equipment Pricing Comprehensive Fuel Site Project Management Permitting and Environmental Filing Construction Bidding & Negotiations Construction Management
25 Fuel Center Construction
26 Fuel Supply DOTS takes all of the hassle out of fueling your retail fuel center, by offering the following: Contracted Fuel Supply Assured Supply of Gasoline and Diesel Spot Market Pricing Consigned Fuel, with NO Inventory Costs Low-cost freight rates
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28 Fuel Management The DOTS Program offers complete peace of mind while managing all of your fuel inventories. DOTS provides the following: Automated Reporting, including: Inventory Management Fuel Reconciliation Environmental Compliance Sales Reports Consolidated Fuel Invoicing Automated Sales Reports
29 DOTS Log-In Access Enter your specific ID and Password
30 Access Your Fuel Site Once logged in, check your status Quickly see any alarms and potential problems at your location Quick and easy Environmental tracking and record keeping
31 Check Inventory Levels Quick visual gauge of inventory Complete, calibrated figures Hourly updates
32 Multiple Reports Available Generate detailed reports Set specified timeframes
33 Regulatory Reports Ensure complete compliance View real time environmental reporting on all tanks, lines, and sensors Easy record sharing via electronic data to all State and Local Agencies
34 Sales Reports View volume and monetary figures Customizable timeframes
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36 Fuel Center Support Ease of operation is one thing the DOTS program provides through support such as: Fuel Center Launch Support On-Site Support and Training Retail Employee Training Dedicated Retail Training Staff State and Federal Fuel Regulations and Procedures Certified Cross-Merchandising Installation and Training Fuel Industry Consultation Maintenance Coordination
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38 Fuel Marketing The DOTS program provides support from our experienced marketers, as well as proven marketing plans, such as: Industry-Leading Rewards Programs Our years of experience will allow us to help tailor a plan specific to your fuel center Additional Branded Fuel Programs Our retail brands may also help provide the necessary marketing desired Complete Imaging Programs From design to production, we can offer a complete imaging package for your fuel center
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40 Retail Brands Offered Sunoco Brand recognition Official fuel of NASCAR, NHRA, and many more Marathon Nationwide brand recognition Product availability Valero Largest US refinery Product availability
41 Retail Brands Offered VP Unbranded gas, with a brand name Niche market recognition, loyal customers Catchy, new image with a growing brand Clark Brand name with unbranded fuel No restrictions on brand of fuel used
42 Notes
43 Ken Kilgore Director of HVR Fuel Sales and Construction Adrian Young Director of Branded Sales Gas and Grocery Retail Solutions Wholesale Fuels Residential Heating Transport Solutions , ext Fuel Center Construction Maintenance Environmental Performance Fuels Bio Diesel Pricing and Procurement , ext Credit Accounts Payable , ext Accounts Receivable , ext Dispatch /7 Emergency Service
44 1.888.DUNCAN.OIL duncan-oil.com Duncan Oil Factory Road - Beavercreek, OH 45434
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