Propane dist. selling pellets - sort of

[TboneMan]

So I get the mail yesterday and what do I find? A flier from my propane distributor announcing they are now selling pellets!

I think "good for them", it is good to diversify your product line, especially when you deal with a commodity like propane. At least that is what I though while reading the big bold heading of the flier.

So, I read further, "Sale Price" $269/ton - pickup price or $20 delivery for less that 2 ton, free delivery with more than 2 ton. $6.99/bag pickup on less than a ton (ouch).

Well I'm intrigued. Not a great price but I've had good customer service from this company of the passed 15 years of propane delivery, so I call to get a bit more information.

The pellets are PA Pellets. Not much bad written on this site about them.

So I ask what delivery includes. Delivery consists of dropping the pallets in your drive way by crane truck (the one they use to delivery propane tanks). I think, wow, that means I have to unwrap and manually stack 5 tons of pellets.


I guess they should have done a bit more research as they missed several marketing points:

1) Their price is too high. I've seen pre-season sales advertised at $245/ton
2) The delivery service is minimal. There are pellet distributors in the area that will pallet-jack them into your garage (for a very low delivery price).
3) The pellet brand is relatively unknown in the area (at least I've never seen it). That's not necessarily bad, but informed customers don't generally buy pellets in quantity without trying them first.


Anyway, it sure is a sign of the times. With time, maybe they'll adjust some of these faults and become a bit more competitive.

 

[SolarAndWood]

Anyway, it sure is a sign of the times. With time, maybe they'll adjust some of these faults and become a bit more competitive.

Alternatively,

They will undercut and drive everyone else under or buy them out. Then, insist that you store them in their containers and let them deliver as many as they want whenever they want. Then do whatever they want with the price. Then, send you a bill for rental of the container and threaten to put a lock on it if you don't pay the rental fee.

Not that every propane dealer is as short-sighted and arrogant as my former one and my apologies to the good ones if they are out there...

 

[crausch]

I agree that an informed pellet head would know they could do better. Maybe the propane company purposely inflates their pellet prices to make their propane look more attractive since that is their primary business.

 

[Lousyweather]

Anyway, it sure is a sign of the times. With time, maybe they'll adjust some of these faults and become a bit more competitive.

Alternatively,

They will undercut and drive everyone else under or buy them out. Then, insist that you store them in their containers and let them deliver as many as they want whenever they want. Then do whatever they want with the price. Then, send you a bill for rental of the container and threaten to put a lock on it if you don't pay the rental fee.

Not that every propane dealer is as short-sighted and arrogant as my former one and my apologies to the good ones if they are out there...

heh! good point....forgot one though! They will also charge you if you, in their estimating, dont use ENOUGH pellets as well!

 

[TboneMan]

Anyway, it sure is a sign of the times. With time, maybe they'll adjust some of these faults and become a bit more competitive.

Alternatively,

They will undercut and drive everyone else under or buy them out. Then, insist that you store them in their containers and let them deliver as many as they want whenever they want. Then do whatever they want with the price. Then, send you a bill for rental of the container and threaten to put a lock on it if you don't pay the rental fee.

Not that every propane dealer is as short-sighted and arrogant as my former one and my apologies to the good ones if they are out there...

You must have be a FORMER customer of Suburban Propane.

 

[SolarAndWood]

Anyway, it sure is a sign of the times. With time, maybe they'll adjust some of these faults and become a bit more competitive.

Alternatively,

They will undercut and drive everyone else under or buy them out. Then, insist that you store them in their containers and let them deliver as many as they want whenever they want. Then do whatever they want with the price. Then, send you a bill for rental of the container and threaten to put a lock on it if you don't pay the rental fee.

Not that every propane dealer is as short-sighted and arrogant as my former one and my apologies to the good ones if they are out there...

You must have be a FORMER customer of Suburban Propane.

You must be psychic

 

[TboneMan]

Solar, I feel for you. I fortunately have not had to deal with those problems, yet. I'm waiting for my supplier to start playing games. I went from averaging 900 gallons/year (for 13 years) to less than 300 last year to likely 200 gallons this year (thanks to on-demand hot water).

Right now, I'm still getting the lower full house propane rate. It might be worth buying a single ton of pellets at this price ($20-$30 more than I expect to pay through my regular pellet supplier) to keep my propane rate reasonable if it becomes an issue (and if pellets can be worked into negotiations).

 

[SolarAndWood]

Solar, I feel for you. I fortunately have not had to deal with those problems, yet. I'm waiting for my supplier to start playing games. I went from averaging 900 gallons/year (for 13 years) to less than 300 last year to likely 200 gallons this year (thanks to on-demand hot water).

Right now, I'm still getting the lower full house propane rate. It might be worth buying a single ton of pellets at this price ($20-$30 more than I expect to pay through my regular pellet supplier) to keep my propane rate reasonable if it becomes an issue (and if pellets can be worked into negotiations).

It is hard to blame them...they were used to the 4000 gallons a yr consumed by the previous owner. A used wood stove in the middle of the house reduced that to about 150 gallons our first year. The boiler this year will get us off propane for DHW, leaving only the stove and grill. I did enjoy telling them what they could do with their tank. We use grill tanks for the little we consume now.