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OT - Good business decision? Kind of a rant

R

Royse

Well-known Member
In my rural area most folks heat with Propane, wood or Kerosene.
The local propane companies have several payment options.
You could pre-pay and save a lot, pay as you go or sign up for a
"budget plan" that lets you pay X amount per month all year around.
I would guess this is a pretty standard setup.
Most around here use the budget plan.
It's easy, you just have to sign up early in the year to qualify.

This year, one local company didn't send out the paperwork to
sign up for their budget plan so everyone started calling them.
They said they were "changing billing systems" so they were
behind but would have them sent out in the near future.

What really happened was that they were bought out by a big
conglomerate and they were raising prices.
So they waited until it was so late in the year to announce their
new prices that those who could not afford to pre-pay or pay as
they go had no choice but to stick with them. You couldn't get
on a budget plan with another company that late in the year.

Their prices were $.70/gallon higher than everyone else.
I use a lot of propane, so for me that's about $1500 a year.

A lot of folks are stuck paying it, which I'm sure was there intention.
Others are not though. Some are so ticked off they will find any
way they can not to deal with that company. So much so that
the yards at their office are completely full with returned gas tanks.
They told me they probably won't be able to pick mine up until
spring because they have no place to put them!

Reminds me of that old saying about milking a cow for life but
only slaughtering it once.

One of the delivery guys from what was the local company told
me they are expecting layoffs because they lost so much business.

It will be interesting to see if they are still in business next year.
 
Would that be Amerigas? Sounds like what happened around
here in Ga. Several people I know have left them. Tommy
 
I think you are probably looking at it the
right way. Too bad they were not up front
about it, and now they are going to pay
the price.
 
We had the same problem at the farm. The old company
got fat and lazy with our buisness as we prepaid for 10000
gal at a time. 7 houses and the corn dryer when running.
My friend started looking at the bill and wasn't adding up.
They were billing for propane we didn't get. Called them
out on it and they denied anything wrong on there part.
Called the new guy in town and saved almost a 1$ a gallon.
 
I switched to Dependable Propane out of Lowell.
I've been with X company for over 12 years, never switched.
So I called some friends in the area.
Dependable came highly recommended. We'll see.
 
Sounds exactly like what happened around here, in central NY when Suburban Propane bought out a lot of suppliers, such as Agway. Now there are a lot of One/Two man "midnight oil co's." around. They deliver fuel only, with no service. Some supply above ground tanks at no charge, some rent them.
Loren, the Acg.
 
I think I live just up the road from you and the exact thing happened to me. It was when my local company got brought out by some big outfit. I always pre brought in August and they gave the same song and dance you got. I got screwed over that winter. Come spring I found another local company and told the big boys to come get their tank,it would be sitting in the road.
I have been with the new company for 7-8 years and have been treated good. I felt bad when Consumers power put their gas line in. I hooked in Dec. I haven't even got a bill yet. The old tank is still sitting their.
 
(quoted from post at 16:08:28 01/08/14) In my rural area most folks heat with Propane, wood or Kerosene.
The local propane companies have several payment options.
You could pre-pay and save a lot, pay as you go or sign up for a
"budget plan" that lets you pay X amount per month all year around.
I would guess this is a pretty standard setup.
Most around here use the budget plan.
It's easy, you just have to sign up early in the year to qualify.

This year, one local company didn't send out the paperwork to
sign up for their budget plan so everyone started calling them.
They said they were "changing billing systems" so they were
behind but would have them sent out in the near future.

What really happened was that they were bought out by a big
conglomerate and they were raising prices.
So they waited until it was so late in the year to announce their
new prices that those who could not afford to pre-pay or pay as
they go had no choice but to stick with them. You couldn't get
on a budget plan with another company that late in the year.

Their prices were $.70/gallon higher than everyone else.
I use a lot of propane, so for me that's about $1500 a year.

A lot of folks are stuck paying it, which I'm sure was there intention.
Others are not though. Some are so ticked off they will find any
way they can not to deal with that company. So much so that
the yards at their office are completely full with returned gas tanks.
They told me they probably won't be able to pick mine up until
spring because they have no place to put them!

Reminds me of that old saying about milking a cow for life but
only slaughtering it once.

One of the delivery guys from what was the local company told
me they are expecting layoffs because they lost so much business.

It will be interesting to see if they are still in business next year.
Click to expand...


If they are that bad I'd start billing them for storing their tank. Buck a day. Tell em they can't pick it up till the bill is paid in full. Once you tell em to pick it after a certain amount of time in most states it's considered abandoned property. Check with a local legal guy first.

Rick
 

Amerigas has bought out most companies around here and I see them evrywhere I travel. They have changed policy as quickly as they can to increase profit and eliminate competition.
It will get worse before it gets better because LP gas is regulated by the railroad commision and they are famious for lining thier pockets.
Will the company that op complained about survive? You bet. They may be on a rocky road in that community temporarly but corp profits will carry them until they are entrenched then they will sell plenty.
 
Several years ago I bought a 1000 gal tank, best thing I have done. At the time I had a company owned 500 gal tank about 50% full. I set my tank out of the way and,as part of the deal when I bought it, had it filled. When the 500 ran out, I ran longer line and called for them to come for their tank. Now when I need fuel I call several places and order from the cheapest. I ended up buying from the former company. Most of the time I save 10 cents or more per unit, more for summer fill.
joe
 
amera-gas did that here and to me, I was never on the budget plan just filled my tanks each fall, last fall I find out when I wanted them filled they are 1.20 per gallon higher than the other small guys in town, told them to come and get the tank they then came with calling first as we agreed on the phone so I could have some equipment out of the way for them as my tank is behind my house, they came when it was very soft and made 4"-5" ruts right thru my lawn instead of going around the other side like I would have had them do if they had called, anyway they then sent me a bill for picking up the tank and charged me several fees such as a haz-mat fee and the tank was empty!! I called them and asked about the bill they said well that's policy I then stated I did not sign a contract them but the local supplier that they bought out, oh by the way I had bought fuel from the original company for the last 29 years, I said fine I will pay the 156,98 they billed me for but they would be receiving a bill from me for lawn/landscaping repair for the tune of 500.00 and would have my attorney deliver it to them, they then put me on hold for a few then said the bill would be zeroed out and my just paid tank rental would be returned, I guess I won that round anyway,,, big some times is not better
cnt
 
Propane service can be a real problem, two examples from the same supplier;

1) I had an opportunity to buy a used 1000 gallon tank, that had a valid test stamp on it. Before I did I called the supplier and asked them what the fuel price would be. They said they would not fill a tank that they had not supplied. I said according to your website I get a discount if I own my tank, they said yes, but only if you buy the tank from us. Their tank was so high it would take years to break even.

2) We sold the house and called the propane company to tell them we had sold and we were moving, and I wanted a refund for the propane that was in their tank, to my surprise they said OK, they would read the gauge and send a check. I told the buyer we had so many issues with the propane supplier they should use their new owner status to go to another supplier. The buyer called me a couple of months later and wanted to know why I "took" the propane, I explained the situation and they did not like it, they thought they owned the propane. The kicker was, the propane supplier "sold" them the propane that was left in the tank for 2 times the money they refunded to us.

Said propane company was a state wide chain that is now out of buisiness.

Good Luck
Rich
 
amerigas bought out the one we used for years (own my own tank). I still call around and Ferrel has been the best price consistently.
 
I have found over the years that the ONLY way to not get screwed by the Propane companies is to buy your own tank. Yes sirree, you can shop around and buy from anyone, And you of course get it filled in the late summer when prices are down. Then, heat with wood, pellets or coal.
I was tired of getting screwed so I bought my own tank. $1000 for a 500 gallon tank, new not used.
Now as far as a good business plan for the customers.......buy one of those tanks sitting it their yard, they will likely sell it to you for cheap, like say.........$500
 
I went through all this last winter with the same BIG corp. that had bought out lots of smaller suppliers. I had been with the BIG company for about 20 years. Amerigas brought a lot of business to the other local companies they did not buy. It cost me to get rid of them, but it was worth it!
 
You can buy a used 500 gallon tank for 500 bucks.
Why would anyone even bother with a leased one to start with?
 
they are not that easy to find around here and for all those years they only charged me 18.50 a year for the tank, the cost is deductible on my taxes so no big deal, but the new company jumped the rate to 79.00 a year,
 
"Why would anyone even bother with a leased one to start with?"

Old company charged $100 to pressure test a tank before they would fill it.
No lease charge on my bill from the new company and it's their problem not mine.
Even if it were $20 a year or so, if it leaks its their problem.
It is food for thought though. I wonder if my insurance company
would charge differently if I owned my own.
 
Ferrellgas wrote the playbook as to how to screw over their customers. Most of the other major players (national companies) use the same book.
 
Rick, my luck they WOULD abandon it.
Then I would be stuck with disposal and hazmat fees.
I'm not about to light the torch and cut it up for two foot!
They can have them. LOL
 
Several yrs ago we lived where the LP tanks could be seen from the road.We owned both tanks.One afternoon a guy drove in and walked rite to the tanks,& lifted the lid. I got there about then, asked him what the heck he was doing. His reply was ,he needed the serial no s. from my tanks as they had no record and they were knew they owned them. He was informed in no uncertain terms that they were my tanks , had them for many years , way before that outfit got into the LPGas business. To say that he got his postirior cussed out would be putting it mildyy. He went out the drive in a hurry , with orders to never set foot on our place again. Isn t life fun? clint
 
Ferral gas wasn't much better when I had them 29
years ago, thieves liars and incompetent too. I
suppose the only thing that kept them partially in
check is I lived on an Air Base at the time, if
they got to bad they might have problems coming on
base to sell propane or pick up their tanks. I was
real glad when the gas lines came in to our trailer
park and we didn't have to deal with their BS.
 
Propane is bad, but consider fuel oil. Around me fuel is going for about or over $4.00 a gallon last I heard. Farm diesel was about $3.70 at the same time. But the supplier won't put farm diesel in a home fuel tank. You can have them load a 275 tank out side the house and they'll do it and you can then pump the diesel to your tank, or they will happily fill your diesel tank with home heating fuel (and try to talk you into kerosene at that!) but not the other way around. What a racket!

If our oh so caring and concerned politicians wanted to help the working class out they'd get rid of the taxes on heating fuels. But we know that's not gonna happen! Meanwhile they work to outlaw wood burning stoves and we pay 70 cents a gallon on gasoline and 75 for on road diesel in taxes to the state and Feds!

And people wonder what the Taxed Enough Already Party is all about.....
 
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