We asked “How Diesel margins are implemented at site?”
Herewith the results from the survey:
- 95% of respondents indicated they sell Diesel 50ppm. We might assume that Dealers who sell more than 1 type of Diesel did not want to complete the survey twice. Also, Dealers may be more concerned about Diesel 50ppm.
- The average margin indicated by the respondents was 152.12 cents per litre (cpl). At the time the full retail margin was 161.7 cpl. That indicates an average discount of 9.6 cpl. The highest discount noted was 36.37 cpl and the lowest zero i.e. Dealers were selling at full retail margin.
- Slightly more than 50% of respondents indicated that Diesel discounting on this product is “somewhat important” to the long-term survival of their business. The rest indicated it is “extremely important”. No respondent indicated it was “not very important”.
- Exactly 50% of respondents indicated that Diesel discounting is “somewhat important” and the remaining 50% “extremely important” to their Diesel customers. No respondent indicated it was “not very important”. Note: this question excluded customers with local accounts.
- 50% of respondents indicated they have competitors who discount Diesel.
- Almost 80% of respondents indicated that their competitors do NOT sell the same Diesel. If we assume that most competitors who do NOT sell the same Diesel are therefore selling 500ppm, then Dealers are discounting Diesel 50ppm although it is a “cleaner” product.
Some of the additional comments left by respondents were:
- “In order to keep up with the competitors one needs to discount the diesel”
- “My competitor sells Diesel 55 cents cheaper than I do”
- “I have gradually increased my margin on Diesel over the last few months and haven’t lost any litres”