Price is the most visible lever in fuel retail — and often the most dangerous.
In Tanzania, local price moves, supplier premiums, and informal discounting can quickly turn a profitable station into a margin trap.
Yet many owners react emotionally to a competitor’s drop, undercutting their own profits without understanding the local dynamics.
A simple, repeatable Competitive Price Survey gives you the visibility to price with confidence — to defend margins, target the right segments, and choose when to lead on price and when to differentiate with service. This article explains how to run a practical survey, what to track, and how to use the results to protect and grow profitability.
Why a price survey matters (short case)
A competitor drops price by 50–200 Tsh per litre. Owners panic and match prices. Over a month that decision can shrink gross margin by millions of Tsh and still not deliver meaningful incremental volume — especially if the competing station services a different customer mix (e.g., transient commuters vs. fleet refuels). A focused price survey prevents knee-jerk decisions by showing who is pricing, where, and why.
What a competitive price survey is (in one line)
A competitive price survey is a structured, repeatable snapshot of nearby stations’ pump prices, observed discounts, service offers, and likely customer segments — taken consistently and turned into a short action report.
Step-by-step: How to run a practical price survey (for day-to-day use)
1. Define your competitive radius.
Start local. For urban sites use a 2–3 km radius; for highway or corridor sites you might extend to 10–30 km depending on travel patterns. The goal is to capture the stations your customers realistically consider.
2. Choose frequency and method
- Frequency:Weekly for high-competition zones; bi-weekly or monthly for quieter corridors.
- Method:Field spot checks (preferred) + phone checks + spot mystery-shop visits. Use a small roster of trained staff or trusted agents to keep consistency.
3. Standardize what you record (survey template)
Use a short form — the more fields, the less likely it will be completed reliably. Essential fields:
- Station name & GPS / landmark
- Fuel types & pump prices (Super, Diesel, Kerosene) — record exact time & date
- Visible discounts/promotions (bulk, loyalty, cash-only)
- Observed customer mix (fleet vs. private vs. taxis) — quick % estimate
- Availability issues (out of stock flags)
- Visible non-fuel offers (car wash, mini-market promo)
- Any supplier branding or new supplier trucks on site
4. Capture price context, not just numbers.
Numbers without context mislead. Note any reasons for temporary price moves: supplier outages, local events, or temporary promotions. Record if the station is known to accept deferred dealer credit or if they favor fleet contracts.
5. Validate anomalies quickly.
If one station shows an unusually low price, verify by phone or second visit before reacting. Temporary promotional pricing or sample errors are common.
6. Convert data into a short weekly dashboard.
A two-panel dashboard works best:
- Panel A: Price map — average price per litre for your competitive radius, trend line for the last 4 weeks.
- Panel B: Risk signals — stations below your price floor, stations with frequent stockouts, stations with strong fleet presence.
Keep the dashboard one page (PDF or sheet) so managers can act fast.
How to use the survey to set smarter prices.
Set a price floor, not a knee-jerk floor
Establish a margin floor: the minimum price you’ll accept given current supplier cost, logistics, and target margin. Only adjust below the floor if you have a specific, measurable strategy (e.g., loss leader to win long-term fleet contract).
Segmented pricing
Don’t treat your market as one homogenous pool. If your station serves fleet clients, offer volume-based pricing to lock contracts while keeping pump prices stable. Use premium lanes or bundle offers (fuel + wash) to avoid direct price competition.
Tactical moves with clear rules
Define rules for when to drop price (e.g., competitor within 500 m drops price by > X Tsh for more than 72 hours and competitor has demonstrable higher throughput). Define exit strategies: how long the tactic runs, target volume uplift, and the margin you’ll tolerate during the test.
Use non-price levers instead of matching
When competitors drop price slightly, test service, speed, and bundles first — these often retain customers without margin loss. Train attendants on speed and upsell bundles to capture value.
Who should run the survey & governance.
- Who:Station manager + one field enumerator (or a centralized ops role for multi-site operators). Larger networks should centralize data collection to ensure consistency.
- Governance:Weekly review meeting — 15 minutes — to decide price actions. If a proposed price move breaches the margin floor, escalate to finance/director level with a one-line rationale and projected impact.
Quick-play checklist to implement this week.
- Build the short survey form (use Google Forms or a simple XLS).
- Assign one staff member or contractor to run weekly checks.
- Define your margin floor and publish it to managers.
- Create a one-page dashboard template (price map + risk signals).
- Run three consecutive weeks of surveys before altering pump prices.
Common pitfalls & how to avoid them
- Overreacting to one low price:verify before reacting.
- No margin discipline:always check the impact of price cuts on gross margin, not just volume.
- Poor sampling:inconsistent or infrequent checks produce noise; standardize and train enumerators.
- Ignoring non-price signals:price alone doesn’t tell the whole story — customer mix and stockouts matter.
When to bring in external help
If you operate multiple sites, have complex dealer networks, or face frequent price shocks (e.g., during supply disruptions), a structured competitive price survey program — combined with pricing simulations and regional segmentation — can be delivered as a short Decision Pack. It will include supplier cost tests, competitor mapping, and scenario models showing the impact of different pricing tactics on margin and payback.
Final thought.
Price is visible, but pricing strategy is invisible. A simple, repeatable competitive price survey turns noise into a clear signal — so you can protect margins and act where it truly matters. In Tanzania’s dynamic fuel market, that signal is often the difference between a profitable month and a cash flow problem.
Want a ready-to-use competitive price survey template plus a one-page interpretation dashboard for your station(s)? Request a sample Decision Pack and we’ll include a
