daugen
Epic Contributor
I just got a topoff delivery of 96 gallons for my 500 gallon tank at $1.78 per gallon.
I thought last year it was a few cents less. Had a chat with the boss/mgr of the propane company that delivers to me, nice guy, got him to chat about things he
probably should not have, such as the reality of consumer pricing. And how they don't have to go any lower even if the wholesale price drops further. Rack up the profits
on the greater margin, knowing that a reserve must be kept for some market disruption. As long as everyone goes home happy and the consumer see relatively low prices, they
don't need to see the lowest price, particularly when prices really have dropped over time. Perception helps to sell the higher price.
Until a competitor starts a price war, but that doesn't always happen. Like corner gas stations that exactly match each other within minutes of price changes, the fix is in.
Now I'm two hours inland from the Atlantic, pretty far East, and since I thought all this gas came from Texas or Oklahoma and piped East, that makes me pretty far away. Not like Maine or Key West, nor Alaska, but pretty far away. So why is my propane so cheap? Are there refineries closer to me than I think?
don't think I'll complain about the price. but it would be fun to chat up that same guy, who was extremely nice. I bought a beautiful Wilmington NC made gas grill from them
and had it hooked to my big tank. So with my backup gen and two gaspacks for heating, I'm a good residential customer for them. But a nothing compared to an agricultural customer say with greenhouses.
Bumper that's a heck of a deal.
Rook, you could go into business reselling, are you using this for commercial/agricultural use?
I thought last year it was a few cents less. Had a chat with the boss/mgr of the propane company that delivers to me, nice guy, got him to chat about things he
probably should not have, such as the reality of consumer pricing. And how they don't have to go any lower even if the wholesale price drops further. Rack up the profits
on the greater margin, knowing that a reserve must be kept for some market disruption. As long as everyone goes home happy and the consumer see relatively low prices, they
don't need to see the lowest price, particularly when prices really have dropped over time. Perception helps to sell the higher price.
Until a competitor starts a price war, but that doesn't always happen. Like corner gas stations that exactly match each other within minutes of price changes, the fix is in.
Now I'm two hours inland from the Atlantic, pretty far East, and since I thought all this gas came from Texas or Oklahoma and piped East, that makes me pretty far away. Not like Maine or Key West, nor Alaska, but pretty far away. So why is my propane so cheap? Are there refineries closer to me than I think?
don't think I'll complain about the price. but it would be fun to chat up that same guy, who was extremely nice. I bought a beautiful Wilmington NC made gas grill from them
and had it hooked to my big tank. So with my backup gen and two gaspacks for heating, I'm a good residential customer for them. But a nothing compared to an agricultural customer say with greenhouses.
Bumper that's a heck of a deal.
Rook, you could go into business reselling, are you using this for commercial/agricultural use?
