LP Gas, May 2015
SUPPLY PLANNING Perpetual price shoppers strain propane supply relationships P ropane retailers get upset when customers abandon them to do business with their competitors even if only a few cents per gallon separate the companies But some of these same propane businesses will walk away from their suppliers or at least squabble with them over a penny or a fraction of a cent per gallon Some retailers and allied trade representatives argue that its OK to do business this way Others say its hypocritical to expect customer loyalty yet shop for the best price among suppliers Let the debate begin The supplier of a propane marketer is not much different than that propane marketer says George Koloroutis a consultant with Propane Concepts They want someone who will pay their bill and communicate with them effectively They want someone who will perform on their contract But some retailers are simply interested in getting the best price As an example A SIX MONTH SERIES FROM theyll sacrifice a good relationship with a supplier for a discounted spot load that becomes available Still as nicely priced as some spot loads are a regular pursuit of them has its disadvantages You have not built out your allocation when you do that says Dave Bertelsen national propane product manager at Valley National Gases and Matheson Suppliers take care of the people who take care of them The same is true of retailers and the transport companies that serve them Bertelsen adds Those companies expect good communication and loyalty from retailers and they dont always get it Propane supply issues in late February of this year particularly shed light on the importance of building a good relationship with a transport company The guys who are now desperate because of long hauls and having to bring product in are out there begging on their hands and knees to get transportation folks to have trucks available Bertelsen says referring to a stretch in late February when the Midwest and Northeast faced their first WINTER OF 2014 15 THE CHALLENGES THE SOLUTIONS BROUGHT TO YOU BY BLUE BIRD Good communication loyalty essential to effective supplier retailer partnerships BY KEVIN YANIK MANAGING EDITOR kyanik@ northcoastmedia net SPECIAL REPORT FROM LP GAS The propane industry experienced one of the most challenging winter heating seasons on record in 2013 14 In preparation for future winters amid a changing energy environment LP Gas is examining the issues that led to what some called a crisis supply situation We are reaching out to all segments of the industry to explore our past and future bringing attention to key subjects initiating industry dialogue and providing necessary education to our readers Want to keep your bulk tanks full come winter Show your supplier loyalty Are you ready to partner with us Blue Bird will help grow your propane gallons www LPGasmagazine com May 2015 LPGas 33
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