Branded Products - Oklahoma City/Western Oklahoma

Over the last few weeks in Oklahoma City, we have noticed a change in how our Branded suppliers have decided to price their product and divvy allocations.  We are seeing one supplier post 300% daily allocations when they are normally at a consistent 125%.  Normally our customers will pay a premium for the brand name, which in essence nullifies the increase in supply availability, but not this time.  We are actually seeing a .08 differential from our Branded to Unbranded suppliers, giving our customers a competitive advantage to hold the brand.  Given previous market conditions, it has always been difficult to sell retailers on Branding their site as their pricing is less competitive than others in the market (such as On Cue or 7-11).  We are now seeing our Branded customers hold an advantage against these retail giants to finally give a true value to branding their facilities.  This is also beneficial from a marketing perspective as we are able to help the smaller unbranded retailer due to our significant increase in allocations.  Normally if there is ever a beneficial price spread, we are limited at the amount of fuel we can sell because our allocations are at the previously stated number of 125%.  With having a 300% allocation we can take this cheaper product and any rebate incentives we have to show our customers we have the best supply available at the cheapest possible price.  We have noticed higher loyalty offering these prices to our unbranded retailers as their contracts all state they will receive the cheapest available Unbranded supplier.  By us offering them a Branded supplier they realize we are giving them a price they are contractually not obligated to receive.  It is showing superior customer care as well financial understanding.  Along with Oklahoma City, we are seeing an arbitrage of approximately .21 on Shell Branded product out of McKee, TX vs. Scott City, KS.  Between the two, you are looking at about a 205 mile difference in rack locations, but given the difference in cost, our customers are happy to pay the extra in freight.  By offering these prices to customers in Western Oklahoma & Southern Kansas we are showing a quality of using our organization.  We are maximizing our supply for our customers by keeping a watchful eye on price differentials and passing the significant savings on to them to maximize their returns.  Saving a customer money is keeping a customer for life.  We have noticed transparency is the most lucrative option for most customers as their main concern is knowing their wholesaler is doing everything they can to alleviate price costs.  Customer satisfaction is always key.