nothing can build sales and · 2014. 10. 13. · maximize property use, attract new and additional...

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.

Nothing can Build Sales and

Profits like Adding Fuel!

Supermarket Fuel Center

Opportunities

Statistics via Energy Analysts International, Inc.


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



Growth and Distribution



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.

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.

Promoting Your Program

Market Basket Rewards

Examples you could use to increase your in-store sales include:

• 5 cents off per gallon with a total purchase of $25.00

• 10 cents off per gallon with a total purchase of $50.00

• 1 cents off per gallon for every $5.00 in total purchases

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.

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.


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 rewards are ongoing, but

the item rewards can be manipulated

based on your gross profit budgets and

aggressiveness towards sales.

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.


Some of the vendor provided support and

money can be channeled towards

incentivizing certain item rewards.


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.

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…

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.

• 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.

Promoting Private Labels

and Specialty Items

Benefits of the DOTS

Program for Supermarkets

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

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

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

Designing and Building

Your Fuel Center

Fuel Center Construction

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

Fuel Supply

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

DOTS Log-In

• Access www.duncansolution.com

• Enter your specific ID and Password

Access Your Fuel Site

• Once logged in, check your status

• Quickly see any alarms and potential

problems at your location

Check Inventory Levels

• Quick visual gauge of inventory

• Complete, calibrated figures

• Hourly updates

Multiple Reports

Available

• Generate detailed reports

• Set specified timeframes

Regulatory Reports

• Ensure complete compliance

• View all of your tanks at once

Sales Reports

• View volume and monetary figures

• Customizable timeframes

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

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

Retail Brands Offered

Sunoco • Brand recognition

• Official fuel of NASCAR

Valero • Largest US

refinery

• Product availability

Marathon • Nationwide brand

recognition

• Product availability

Retail Brands Offered

Clark • “Brand” name with unbranded fuel

• No restrictions on brand of fuel used

VP • Unbranded gas, with a “brand” name

• Niche market recognition, loyal customers

• Catchy, new image with a growing brand

Notes _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Duncan Oil Contact Info

Gas and Grocery............................ Retail Solutions…………………….. Wholesale Fuels……………………. Residential Heating………………… Transport Solutions……………….. Fuel Center Construction……….… Maintenance………………………… Environmental……………………… Performance Fuels………………… Bio Diesel…………………………… Pricing and Procurement………… Credit………………………………… Accounts Payable…………………. Accounts Receivable……………... Dispatch……………………………... 24/7 Emergency Service…………..

937-305-7001 937-606-4909 800-999-6620 800-999-6620 800-527-2559, ext. 37 937-305-7001 937-303-6645 800-527-2559, ext. 24 937-502-5611 800-527-2559 800-527-2559, ext. 30 800-527-2559, ext. 28 800-527-2559, ext. 12 800-527-2559, ext. 41 877-315-3687 937-608-0425

Ken Kilgore

Fuel Center Specialist 937-305-7001

Ryan McDaniel

Director of Sales and Marketing 937-606-4909

www.duncan-oil.com

www.duncan-oil.com

Duncan Oil- Beavercreek

849 Factory Road

Beavercreek, OH 45434

Toll Free: 1.800.527.2559

Fax: 937.427.2365

Duncan Oil- Springfield

2850 E. Leffel Lane

Springfield, OH 45505

Toll Free: 1.800.999.6620

Fax: 937.323.6492

nothing can build sales and · 2014. 10. 13. · maximize property use, attract new and additional...

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