Hedge Solutions, Inc. has launched a new service that focuses on the fuel margins of daily “non program” floating price business. This segment accounts for the vast majority of delivered volume but is often overlooked as an area to hedge enhanced margins. Margin Trak, which has been in development for 2 years, includes a proprietary software application for tracking margins and market conditions, a systematic set of hedging tools employed to maximize profit as well as a dedicated team of support professionals who proactively audit client data in real time to identify advantageous circumstances.
According to Rich Larkin, President of Hedge Solutions, “dealers have a scant 80-100 days to make the majority of their fuel profits and, hence, can’t afford to waste any time…when margins expand, folks need to capture that for as long as possible”. Larkin goes on to say that “extreme market volatility has made it increasingly difficult for dealers to assess and adjust prices to achieve daily margin targets”.
Margin Trak is a powerful business intelligence platform that accumulates data related to rack costs and retail prices to determine a daily margin analysis. This allows a dealer to gain precise visibility into how the market is affecting margins so that appropriate action can be taken. From there, any number of strategies can be tested in a virtual setting then employed to fully enhance margins.
“Volatility can be a beast but it can be turned into the beauty” says Larkin. “Learning to effectively navigate market opportunities that expand margin may be the last frontier for increasing profits in an industry that is under increasing pressure from consumers”.
Hedge Solutions, Inc., founded in 1993, is an industry leading risk management and energy trading firm located in Manchester, NH.