Propane-shoddy business practices

   / Propane-shoddy business practices #1  

Pilot

Veteran Member
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Nov 20, 2004
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Location
Oregon
Tractor
JD 770, Yanmar 180D, JD 420 (not running), had a Kubota B6200
Sorry this is long, but it's a long story.

Our little country church switched from oil to propane when the furnace died. A guy signed a contract with the supplier on behalf of the church. He didn't check things out very well, didn't read the contract--he's dyslexic.

He bit because the supplier, let's call them "Joe's Propane and Used Cars" offered a low come on rate the first year, then "market" rates in years 2 & 3 of a 3 year contract. There is a $300 "early termination" fee in the contract if you want to get out of it in less than 3 years. And, not in the contract, was an automatic keep full service.

In year 2, we found that their "market" rate was 84 cents per gallon higher than another supplier, 96 cents higher than another. The church made the decision that it was cheaper to change suppliers, switching to one of the other suppliers with no 3 year contract, and pay the early termination fee than to continue at the exorbitant rates Joe's Propane and Used Cars was charging.

So I called Joe's Propane and Used Cars and canceled the refill service so we could work thru the propane in the tank before we made the switch. But Joe's Propane and Used Cars rushed out and filled the tank a few days after I called. They said they couldn't change the delivery schedule in just a few days. Now I can walk into the Post Office, fill out a card and next day I won't get mail. That's the Post Office! I can call the newspaper and next day, no paper. But they say they can't change the route with just a few day's notice. Right.

So we switched to "Ethical Propane", their guy comes out, disconnects Joe' tank, transfers most of the propane to the new tank, leaving in Joe's tank an amount equal to their last delivery. So they would get back the propane they weren't supposed to deliver.

2 weeks later, Joe's Propane and Used Cars finally picks up their tank and claims it was empty and they want not only the early termination fee but also almost $400 for the propane they weren't supposed to deliver.

Talking to the guy at Ethical, it turns out it is illegal to haul a tank down the road with propane in it. So Joe's Propane and Used Cars had to send a DOT certified tanker truck out and emptied the tank, then picked up the tank with another truck, the driver of which rightly recorded that the tank was empty. But Joe's Propane and Used Cars still wants payment for the propane which they got back plus the termination fee.

We are refusing to pay for the propane, but willing to pay the termination fee.

Another company supplied our home. They got bought out and practices changed. When we got a delivery, the invoice price seemed awfully high. Called the office and they quickly backed down, knocking about $1 per gallon off the price. So after every delivery, we called and got a discount. Saved over $1,000 over a 2 year period before we switched to another supplier.

Lessons: 1. As always, be sure you know what you are getting into, short term and long term. 2. Shop around, ask questions. 3. Google search prospective companies, looking for complaints. Joe's Propane and Used Cars has a lot of complaints as well as a class action lawsuit in the works. But remember, nationwide outfits will always have some complaints because no on is perfect, so account for that. Ethical is local and I found no complaints online. 4. If you think the invoice price is too high, call the office. We found that high prices on invoices is a common practice in the industry and those who pay the invoice price get ripped off.

Note again, the company names here are made up--we have some folks on our end that are afraid of lawsuits.
 
   / Propane-shoddy business practices #2  
Interesting. I know nothing about propane. I didn't know that the supplier also supplied the tank. I guess I figured the land owners bought their own tank.
This is something I'll keep in mind should I ever need propane.
 
   / Propane-shoddy business practices #3  
Around my location there is a pretty big propane supplier. If you don't flat buy their tank, you get charged a "tank rental fee" which is added to the price per gallon. I bought my house from a previous owner so tank was already here for about 9 years. I called and asked why the price per gallon was so high and they said, "well you don't own the tank". I said it was here when I bought the house WTH? So I asked how much to buy it. They said they don't sell used tanks and a new one was $600 dollars.

When I get around to changing companies, I will call and them to come get their tank and everyday that it sits on my property I will be charging them a storage fee.
 
   / Propane-shoddy business practices #4  
Here in central KY, the major propane dealer charges $4.19 a gallon + tank rental fee. The other supplier charges $1.49 + tank rental fee. The $4.19 company says the other company is selling dirty gas. BUNK is what I say. Gas is Gas. Ken Sweet
 
   / Propane-shoddy business practices #5  
Seems like churches always get the "good" deals. Sorry to hear about the troubles. Seems like there would be a way to find out which company came and emptied that old tank and get them to fess up that they collected 400 gal (or whatever it was).

We lease a 1000 gal propane tank for ~$100 per year. When we checked into buying it, it was a better deal to buy until you find out that it has to be re-certified every 10 years (or so we were told). We have had ours for 17 years, never been re-certified to my knowledge (but then again, it is not my problem since we are leasing it). We use around 400 gal per year and get it filled once per year, it was $1.85 gal this year to fill it up. There are all kinds of stories and unethical businesses, but the price we get is about what others are charging and the tank lease is not outrageous. I have a feeling that if we owned our own tank that it would cost us $$ to have it re-certified and end up costing us more for the tank than the lease.
 
   / Propane-shoddy business practices #6  
I called my propane company today to get soem current prices, 1.99 gallon. (last time I filled it was 1.24/gallon. So I said what about any summer time discounts (Used to be the deal the original company had, one that now owns it is the 3rd one.) my original contract was a free tank rental if you filled the tank every year (filled as in used the same or more gallons as the tank volume) mine is 500 gallon tank and I usually only use about 200/year. so there was a 25/yr service rental fee. Now it was bought out 5plus years ago company B bought the co-op out (my first company was a co-op) they first said I had ti fill my tank 2 times a year or pay a double fee per gallon. (rates went up by 50% more than all others in area) I stated I had a contract with the company for my rental fees and only single fill per year. no termination fees ect. now I have company C who sometime? bought out company B. today I get a NEW fee schedule, 100 tank rental per year, 300 cancellation fees out of rout delivery fee 100, low use fees 200/yr if you buy less than 1.5 tank volume, 25 per delivery / trucking fee. 50cent per gallon to pump out and keep any volume left in the tank fees. this was th SHORT version of their NEW fee schedule... simply ridiculous...

mark
 
   / Propane-shoddy business practices #7  
I called my propane company today to get soem current prices, 1.99 gallon. (last time I filled it was 1.24/gallon. So I said what about any summer time discounts (Used to be the deal the original company had, one that now owns it is the 3rd one.) my original contract was a free tank rental if you filled the tank every year (filled as in used the same or more gallons as the tank volume) mine is 500 gallon tank and I usually only use about 200/year. so there was a 25/yr service rental fee. Now it was bought out 5plus years ago company B bought the co-op out (my first company was a co-op) they first said I had ti fill my tank 2 times a year or pay a double fee per gallon. (rates went up by 50% more than all others in area) I stated I had a contract with the company for my rental fees and only single fill per year. no termination fees ect. now I have company C who sometime? bought out company B. today I get a NEW fee schedule, 100 tank rental per year, 300 cancellation fees out of rout delivery fee 100, low use fees 200/yr if you buy less than 1.5 tank volume, 25 per delivery / trucking fee. 50cent per gallon to pump out and keep any volume left in the tank fees. this was th SHORT version of their NEW fee schedule... simply ridiculous...

mark

Mark, If you think these prices and fees are "simply ridiculous" Just wait until the cap and trade bill gets passed. You can about double all fossel fuel costs. In addition, everything we touch will go up dramatically. I don't have to worry, because I plenty of trees to Offset my carbon footprint and still have some credits to sell. :D Ken Sweet
 
   / Propane-shoddy business practices #8  
Around here in southern IL the propane companies seem to give away the 500 gallon tank. All you have to do is buy propane from them for x number of years. They all seem reasonable and competitively (sp?) priced. They even try to top off everyones tanks when prices are low and wait as long as they can and fill up just a little when prices are high. They seem to work with everyone pretty well. These companies know the market and seasonal swings.
 
   / Propane-shoddy business practices #9  
After reading the posts already about these propane companies and their tanks, and seeing the prices I also have been paying, (while using the company's tank)...I have to conclude that most of these propane companies should be in the same seedy city block as the speedy cash for your auto title outfits.

I do not think propane nor it's prices are governed by a public service commission or any kind of consumer group, (like electricity or natural gas). That's a pretty sweet deal to offer a tank, hook a victim, and have them pay double or triple the normal rate for years to come.

I am also planning to unload my company tank...buy my own tank and then call around to see who offers the lowest price before filling.
 
   / Propane-shoddy business practices #10  
Up here in the north woods, propane dealers are numerous. The free market system works pretty well. They keep each other honest in terms of price, rental, etc.

The dealer I buy from is honest as the day is long. Fick and Sons Propane. No relation, but if everyone else wants to think so, that's OK too. :D:D
 
 
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