The way propane should be purchased!

 

Contact Us

 

1/4 million gallons of buying power -- and growing.

Propane Club

1425 Black Champ Rd.

 

Waxahachie, TX  75167

 

For more info, e-mail or call Ray at 972-299-9995 (Reliable Go-Karts)

 
Home How It Works Join / Renew About Us Comments Suppliers

 

Residential

Discount  Propane

Commercial

 

 

We'll know in a few days, but we expect many of the club members will pay $2/gallon in the 2010-2011 year.**

 

How much are you paying?

 

Join now for the 2010 - 2011 year (Sep- Aug) and get the rest of this year FREE

 

"Just received our propane bill from [propane company] for our 250 gallon tank and almost fainted!  They delivered 136 gallons and charged us $630 - help!

I'd like to learn more about the propane club and the smart way to order propane."

(e-mail received on 1/21/2010;  that charge represents $4.63 / gallon.  The author is now a member of the Propane Club.)

 

(Click here if you are a propane supplier and are interested in providing fuel for the club.)

 

In a Nutshell:

 

We negotiate a discount on propane each year, based upon our purchasing volume.

You save money if you join.

 

When economic conditions allow, we get a lock-in for the year, and you save even more money.

 

 

 

One of our members was kind enough to survey various local companies on 1/6/2010 to determine the cost of 200 gallons of propane.  Company names are abbreviated.

 

 

Price per

Total * for

Provider

gallon

200 gallons

Propane Club B

$1.915

$383.00

Propane Club A

$2.200

$440.00

N-P

$2.330

$466.00

P.

$2.350

$470.00

I. P.

$2.980

$596.00

AG

$3.390

$678.00

 

Club members buying 200 gallons on 1/6/10 saved:

Propane Club A vs. AG:  $238.00

Propane Club B vs. AG:  $295.00

 

* Prices do not include delivery, haz-mat, or any other additional charges that may apply.

Blue -- Original Club;  Red -- Club East

 

Propane was "upside down" last September, and it was not feasible to lock-in.  We're on a cost-plus basis, so our price currently fluctuates daily by supplier and region, but we're still saving up to a dollar or more on each gallon we buy.

 

That's up to $295 savings on a 200 gallon fill-up!

(You can easily save seven times your residential membership fee in just one fill-up.)

 

Original Club for Ellis, Hill, and Johnson Counties

including Alma, Alvarado, Avalon, Bardwell, Blum, Briar Oaks, Burleson, Cedar Hill, Cleburne, Cross Timber, Crowley, Ennis, Ferris, Forreston, Garrett, Godley, Hillsboro, Hubbard, Italy, Itasca, Joshua, Keene, Mansfield, Maypearl, Midlothian, Milford, Oak Leaf, Ovilla, Palmer, Pecan Hill, Red Oak, Rio Vista, Telico, Venus, Waxahachie, Whitney and vicinity.

Club East for North & Northeast Texas

Including Arlington, Combine, Denton, Ft. Worth, Hutchins, Lancaster, Mineral Wells, Mt. Pleasant, Palmer, Rice, Rockwall, Seagoville, Sherman, Terrell, Tyler, Weatherford and vicinity.

 

*There is a delivery surcharge of 10 cents/gallon or more to areas outside the central area, plus a haz-mat fee.

 

Click for more info.

 

 

 Recent comments from current members:

 

"Keep up the good work for all of us members!!"

 

"Thank you for finding “fun” with a hobby that can save me money, too!"

 

“Business Leadership is about making the best decision with the information available, in a timely manner.”

 

"Ray, I am delighted that you are a leader and that you are the kind of person who is willing to put forth much effort to the benefit of others!"

 

"May you always rejoice in knowing that you do benefit others!  Best regards for your continued success."

 

"Had a 'one time special offer' from [a local propane company] the other day for $2.20.  [The Propane Club supplier] had just topped me off at $1.95.  I politely declined."

 

"I appreciate being a member of this club."

 

"Your help is GREATLY appreciated in keeping our propane costs down.  We feel lucky to have you managing this club and are privileged to have you going to bat for us!  I am one very happy and satisfied propane club member!"

 

"Every penny that is saved is appreciated around here."

 

"I deeply appreciate your service.  Thank you so much for providing it."

 

"Thank you, Ray, for the update and for what you do.  It is worth it to me to pay a few cents extra to have someone else put up with the headache.  Maybe in the future we can lock in and save more, but until then we know you are doing the best you can."

 

"We have been very happy with your efforts and we know that you always have our backs. Thanks for all you do!"

 

"Thank you for all your time and trouble and this club has saved us a lot of money.  We have a personal and our business is a member too.  Sometimes its so easy for people to complain and so hard to say Good Job, Thank you and God Bless."

 

 

 

Lock-in

 

The lock-in is determined by each of the propane companies we use, not us.  It's very simple:  If they feel they can lock-in and save us all money, they do.  If not, which has been the case the last 2 years, they don't.

 

Why?  You'll notice, unlike pre-buy plans, we have no pre-pay.  We decided to go the "lock" route because most people can't afford to pay for an entire year's propane up-front.  When the propane company locks in, their supplier charges them about 20 cents a gallon.  So, if we're paying $2.00, the lock-in at the same rate would cost us $2.20.

 

That's great when propane goes to $3 - $4, as it has in the past, and we're locked-in at a lower price.  But, if the market conditions are unstable, they don't want to lock-in at $2.00 and then not have the price increase, or, even worse, have it drop.

 

If the price stayed the same, we'd be paying a 20 cent premium for the lock, which would be absurd.  If the price drops, the gas is even more expensive.  Members would simply cancel their membership for the year, and the propane companies would be stuck with three hundred thousand gallons of propane for which they paid too much.

 

Many of our members have become self-proclaimed "experts" on when we should lock in.  Some demanded we lock-in last year when the price was close to $3, and it dropped to less than $2.  A lock-in would have been terrible.  Regardless of how smart we think we are, it's the propane companies who decide whether to lock -- they are the ones with the cash to loose.

 

Now you understand why we can't magically lock-in on September 1st, especially since the energy market has been so volatile lately.  Please note what gasoline has done -- a year ago, we were paying $1.50 a gallon less than we are right now.  Natural gas is reportedly in an abundance of supply, so it's price is expected to drop.  Will that lower the cost of propane?  It could, but this market is confusing most experts.

 

 

The Current Plan for 2010-2011

  • HILCO Propane has agreed to sell to us on a "Cost Plus" basis; they will NOT lock-in.  The price may fluctuate daily.
     

  • FerrellGas has not responded to our inquiry regarding the 2010-2011 year.
     

  • For the 2010-2011 year, there may be a discount for persons who own their own tanks, depending upon the club of which you are a member.  Also, we are expecting a lock-in of around $2 for at least one club ($1.80 for those who own their own tanks).  These statements are based upon prediction, and cannot be guaranteed.  The lock-in will expire 3/31/2011, when propane prices normally drop.
     

  • The "keep-full" restriction of our program will be strictly enforced.  You should always check your tank, and call your supplier when it gets low.  However, our provider always has the option to top off your tank -- that means more efficiency for them, and savings for us.  Anyone refusing a top-off will be dropped from the club, with no refund of membership fees.
     

  • Please review the conditions of membership.
     

 

Commercial customers are also welcome!

 

We welcomed

The Salvation Army -- Hoblitzelle

to our club in the 2005 - 2006 year!

We welcomed

Mt. Lebanon Baptist Encampment

to our club in the 2006 - 2007 year!

We welcomed

Willie's Place at Carl's Corner

to our club in the 2008 - 2009 year!

 

 

 

And NEW for 2009 - 2010, a grand welcome to:

Latham Springs Baptist Camp

 


 

Click here to join!

 

** Southern area; lock in expires 3/31/2011.  This is currently a prediction, not a guarantee.

 

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