Does Your Propane Supplier Share Your Propane Price Per Gallon BEFORE Each Delivery?
Many propane suppliers choose not to openly post or publish current propane prices for customers to view and compare. Some suppliers indicate that they are unable to openly publish the current propane price per gallon BEFORE a delivery because wholesale propane prices change very rapidly. This is very interesting.
Question: What do current wholesale propane prices have to do with giving an existing propane customer their propane price price per gallon BEFORE each delivery???
Many propane customers would assume that retail propane suppliers have an inventory of wholesale propane available to take care of current customer deliveries (the large tanks that appear next to a propane supplier office location or at remote locations out in the suppliers service area). If this is the case, propane suppliers would have an inventory of wholesale propane and be aware of the propane price per gallon paid for that propane fuel. From that point, the propane supplier being asked for the propane price per gallon by it's customer should be able to add a margin, plus any other fees that is chooses, if applicable, to arrive at a retail propane price per gallon value that it will charge it's customer.
No different than a grocery store that buys milk from a wholesale supplier, adds a mark-up, then offers the milk inside the store with the retail price clearly noted on the shelf. The price being competitive to ensure customer sales. The retail price being competitive to ensure retail customer sales. No different than a paint store that buys paint wholesale and adds a mark-up, then posts the retail price of the paint inside the paint store. The price being competitive to ensure retail customer sales.
Retail propane pricing should be similar to the milk and paint products in the example above. A propane supplier purchases an inventory of wholesale propane to deliver to customers. The supplier then adds a profit margin per gallon - ensuring that the retail propane price is in the same range as other local propane suppliers to be competitive.
Perhaps the next time you contact your propane supplier (or another local propane supplier if you are conducting a local propane price comparison survey), and you hear the supplier indicate that they can't possibly share current propane pricing because the wholesale propane prices are constantly changing - ask how the supplier determines the propane price at any point in the future. If wholesale propane prices are constantly changing 24/7, why is it that many propane suppliers are unable to verbally quote the propane price per gallon or post the propane price per gallon on their company website BEFORE each delivery, but the same propane supplier can magically print the propane price per gallon on the delivery invoice that the delivery truck driver leaves at your home immediately AFTER a propane delivery. At what point AFTER a propane customer price inquiry and BEFORE a propane delivery does the supplier determine the propane price per gallon to print on the delivery ticket?
Interesting, to say the least.