LP Gas, February 2014
COMMERCIAL MARKET Pushing into the commercial market Knowledge relationships cited as key to growing retail hospitality restaurant and educational segments for the propane industry R BY JENNIFER WEBB CONTRIBUTING EDITOR esidential delivery of propane has been the bread and butter for the industry and most of its marketers However as sales continue to lag industry leaders looking for ways to increase the number of gallons sold are turning to what they say is a largely untapped and misunderstood commercial market that presents significant opportunities for retailers Seizing those opportunities will take some work on the part of marketers who are in a unique position to develop relationships with people in their communities and position themselves as resources Bridget Kidd director of residential and commercial markets for the Propane Education Research Council PERC says new tools are ready to equip marketers with everything they need to approach builders developers land brokers engineers and other decision makers The commercial decision makers may not be familiar with propane Kidd says Anecdotally we hear people say if they cant use natural gas theyll just use electricity We need to educate those people that propane is a viable option that their tenants or employees are going to reap the benefit of having gas without being on the gas main and its not going to cost an exorbitant amount of money ICF study PERC commissioned the team from ICF International and Harris Interactive to examine commercial market opportunities looking in particular at who are the key decision makers what factors influence their energy choices and how propane might serve their needs In the resulting report released in 2011 study authors note the general disconnect between most propane marketers and their potential commercial customers Based on our research into the commercial markets it is clear that none of the participants in the market have a broadbased understanding and comfort level with using or choosing to use propane in commercial sector applications the study says Decision makers must understand Propane is an option Not only did commercial customers misunderstand how propane might complement their businesses propane marketers interviewed for the study lacked a good understanding of their existing commercial customers the study adds Its not surprising given the diversity of the commercial market ranging from locally based operations to big box stores and national chains with a central headquarters that makes all decisions Some commercial accounts would be inclined to lean on propane for cooking while others look for space heating and still others might only consider it for a standby generator Energy efficiency is an important factor for some and return on investment is critical 28 LPGas February 2014 www LPGasmagazine com PHOTO COURTESY OF THE PROPANE EDUCATION RESEARCH COUNCIL
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