LP Gas, February 2014

TOP PROPANE RETAILERS is after all a farmers cooperative thats designed to meet an assortment of farmers needs Its very important that you have a trust in your supplier Williams says Farmers have to get a good product at a competitive price Propane is the lifeline of running this farm Its a necessity we have to have it It would be just about impossible to cure tobacco without propane Plus its economical Financial flexibility One component that makes Southern States particularly economical to farmers like Williams is its financing program says Pete Ostman a propane operations manager According to Ostman John Deere Financial Inc handles financing for Southern States John Deere offers a variety of payment methods that are attractive to farmers yet also available to the companys residential customers The John Deere program was put in place for the farmers Ostman says Farmers dont get paid until their crop hits the market so they ask if they can defer their payments until they sell their tobacco John Deeres role as the financier offers benefits to Southern States employees as well In the past I felt like I spent half of my day on accounts receivables trying to get slow paying customers to pay says Ostman whos worked for three other propane retailers including one in Alaska throughout his career Ostman who by now has been with Southern States for about nine months was hired in part to further diversify the companys propane accounts in central North Carolina he says Brandon Williamson 25 completes a fill on his morning route Our competitors cant compete with us on the ag side because we offer seed and feed all at one stop says Ostman who oversees four stores What weve done with me coming on board is take the propane responsibility off the store managers I oversee the operation and am tasked with growing the business Store No 1 One store Ostman oversees is located in Oxford N C This is one of Southern States older more rusticlooking stores as evidenced by its location adjacent to railroad tracks and a gravel parking lot Forty five percent of this stores sales derive from propane Ostman says as it sells about 800000 gallons each year Most items in the store arent propane related though A propane hot water heater is marketed in one corner and 20 pound cylinders are shelved in another but most of the store is made up of a variety of items farmers and others in this rural community typically use Massive gun safes in the middle of the store are the first items the eyes see Behind them boots and socks are shelved while jackets and hunting gear are racked Various bottles of sprays and repellents are shelved neatly throughout the store too as are a number of bagged products for use outdoors This is not your typical propane retailer A sign promoting deer corn for 999 per bag outside the store illustrates this concept well Continued from page 32 Pete Ostman propane operations manager joined Southern States in 2013 34 LPGas February 2014 www LPGasmagazine com