Useful Tips For Pricing Your
Propane
Researching
propane prices on a continuous basis is vital in assuring you pay a competitive
rate and save money. Joining one of those supplier prebuy programs help you save
money; however, if you're not enrolled in such a program and prices for your propane
are not publically posted, you should consider the following concepts for researching
your propane prices.
1.
Your delivery ticket should reflect your exact pricefor each gallon of propane
you buy on it, each and every time you receive a delivery. If, for some reason,
your per gallon price is not shown you should immediately contactthe supplier
and have them add it to any future delivery tickets, as well as giving you the
price on the current one. If they have to write it on there by hand then that's
what they need to do. This price is very important to your research. If you don't
have this information you will not be able to compare your price with other propain
retailers, so make sure they can give it to you. Some companies will try to tell
you they can't tell you this information, but they must.
2.
Make it a habit to anonymously call your current propane seller a few times every
month, mainly during the winter time when propane purchasing/use is high. When
you call ask what their current per gallon prices are. You want to call anonymously
to assure your supplier will give you unbiased information. Be sure to have a
certain amount of propane per month in mind, as most suppliers offer bulk pricing
at a different rate than small purchases. Once you get this price, start calling
around to the other suppliers in your area following this same pattern of "price
shopping". Be sure to ask for their standard pricing, and also acquire their
new customer pricing based on your normal volume of propane purchased per year.
Be sure to get details like how long "new customer" pricing lasts- never
assume! Ask about their different options (if applicable) and prices for each,
i.e. price for leased propane tanks or purchasing/having your own. Propane pricing
research is designed to give you the answers to several important questions you
should have such as: Do I really save money by purchasing a pre-buy contract?
Is customer term and loyalty rewarded by a reflection in the price per gallon
or am I being charged the same as everybody else including new customers? Are
new customers paying less than I am after becoming a long term loyal customer?
Do price cap programs really save me money in the short and long term? If you
can't answer these questions then you need to do more research. Always keep records
of your research answers in a clearly readable and easily distinguishable file.
These files will prove a trend and help you to find the best company to go with
or stay with due to a positive and recurring pattern of saving you money and rewarding
you for your business/loyalty. Keep your records immaculate and detailed, including
times and dates.
3. After each delivery, call the other suppliers (competitors)
and get their current pricing so you can compare what's on your statement (price
per gallon) to what they are charging. This shows you if your getting the best
deal, and also helps you to learn, over time, which companies have a trend of
lowering their prices, and if the one your with doesn't.
4.
Looking at the Federal Government EIA Propane Pricing Data, note the pricing trend.
Notice how each company's propane price trend plays out as well as the global
average. Pay attention to the national pricing movement, and if prices go up or
down in the past few weeks. You want to watch both trends (national pricing index
and each supplier's trends). The national price trends and the individual company's
prices won't be exact but they will tend to parallel pretty close to one another.
You can use this data to see which companies are moving with the times and which
ones are rigid in their pricing.
5.
Ask people you know for their propane pricing information. This can also be a
valuable source of up to date information on propane pricing. Be sure to ask if
they use a leased tank or purchased one. Note which company they use as well.
If all factors match, the prices should also be close. The same goes for tanks
having a similar capacity, if the tanks are the same size the rental fees should
be pretty much the same everywhere. Ultimately, we're all responsible for making
sure we are getting a competitive rate for our propane, but it can help a great
deal if you form alliances with your friends and neighbors to share data and help
one another research for the best price. There are also local online forums and
chat rooms where people meet for things like this, but ultimately you will need
to do your own homework to be sure your getting accurate numbers. If the service
you're getting is not competitively priced, you should consider changing suppliers.
Spring is the best time to make the change due to the ease of tank replacement
and lack of unforeseen weather issues. To win your business, most propane suppliers
will actually handle the communication with your current supplier and changing
out your tank at no charge to you. This promotes a quick and easy transition without
an interruption of service.
