The strategies in PriceCast Fuel
Every fuel their own strategy and attention.
The Rule-Based Strategy
The rule-based pricing strategy calculates your fuel price by means of a number of fixed rules. An example of one of these rules could be that you always want to keep a fixed distance from your cheapest competitor (eg always 3 cents higher). When PriceCast Fuel detects a price change at one of your competitors it immediately checks whether the current price still matches the fixed rule(s). If one of the rules does not match with your current price, your price is automatically adjusted.
This strategy is used to always have the same price as your competitor without having to change it manually. A product where this strategy is often used is LPG. Stations often want to be the cheapest on LPG because customers of LPG react very strongly to price changes. Furthermore, the use of the rule-based strategy on diesel if you have many contract customers is a perfect strategy.
The Restricted-AI Strategy
The restricted-AI strategy instructs PriceCast Fuel to make an hourly calculation of the optimal price within the preset bandwidths. The bandwidth is created by giving the system a maximum and minimum distance from the cheapest competitor. Within these bandwidths, the optimal price is calculated and automatically changed from 1 time per day to 24 times per day.
In the example to the left, you can see that the price of your station (the dark blue line) is fluctuating within the bandwidth (the orange area) which is determined by the cheapest competitor (the light blue line). The price is calculated and adjusted depending on the price elasticity of the customer and historical patterns.
The Advanced-AI Strategy
The Advanced-AI strategy is the most advanced strategy within PriceCast Fuel. When the artificial brain has collected sufficient data from a dynamic price (eg by use of the R-AI), this strategy can be used to provide you with the ultimate playing field between cost and list price. There will be no bandwidths which gives PriceCast Fuel the ability to find the absolute optimal price for a fuel at your station. You will only have to monitor the performance of your fuels and station(s). When an adjustment is needed, you can easily adjust the system to shift its focus from volume to margin and vice versa.