Propane prices in a neighborhood can vary among consumers for several reasons. The reasons that propane prices can vary include new customer incentives, propane consumption patterns, propane supplier discount offers, a supplier’s decision to lower propane prices simply for competitive reasons, participation in a propane buyers group, employer discounts and a variety of other reasons. Whatever the case, it is a good idea for consumers to find out about neighbor propane prices. With knowledge of what other consumers are paying for propane in your area, you may find that your are eligible for the same type of discount program.
If one of your neighbors recently signed-up for new service with another supplier, it is possible that the customer is receiving a ‘new customer incentive’ propane discount program applicable to new customers with a specific propane supplier. A new customer discount may include a first tank fill discount or other form of discount (i.e free tank installation, no tank rental for year one, etc.). In most cases, the new customer offer will expire during the first year.
Some propane suppliers offer a discount that applies to customer consumption patterns. A customers propane pricing may be tied to propane volume purchased. It is possible that a propane consumer recently reached a higher tier level resulting in a reduced propane price per gallon.
One or more of your neighbors may be paying less than other propane consumers as part of a company propane discount plan. Some common propane discount plans include a senior discount, active military discount, church congregation discount and other discounts.
Some propane suppliers perform periodic competitive price reviews to assess the suppliers propane pricing compared to other local propane suppliers. If the supplier determines that it’s propane price per gallon is higher than other local suppliers, some consumers in your area may receive a propane price reduction. A customer that is with a propane supplier that is clearly overcharging customers based on a comparison among other local customers should change propane suppliers as soon as possible.
Propane buyer groups may offer propane pricing that is lower than many other consumers in a certain neighborhood. In some cases, the propane price per gallon may have been calculated based on the estimated annual consumption of all propane consumers in the specific propane buying group.
Your neighbor may have contacted their propane supplier and complained that their propane prices were too high based on a neighborhood propane price survey. The supplier may have responded by lowering their propane price per gallon to align it with the propane prices paid by other consumers in their neighborhood.
How do you find out about possible discount propane price programs in your neighborhood? Contact your neighbors and all suppliers that offer propane service in your neighborhood. Ask about available propane price discounts. Propane suppliers offer periodic promotions and new customer specials. It makes sense to compare propane prices vs. neighbor propane pricing on a regular basis to learn what other local consumers are paying and discover if the same program may be available to other customers.
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