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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
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"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.
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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.
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Price per |
Total * for |
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Provider |
gallon |
200 gallons |
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Propane Club B |
$1.915 |
$383.00 |
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Propane Club A |
$2.200 |
$440.00 |
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N-P |
$2.330 |
$466.00 |
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P. |
$2.350 |
$470.00 |
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I. P. |
$2.980 |
$596.00 |
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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.
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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.)
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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.
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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.
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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."
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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.
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FerrellGas has not responded to
our inquiry regarding the 2010-2011 year.
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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.
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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.
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Please review the
conditions of membership.
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Commercial customers are also welcome!
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We welcomed
The Salvation Army -- Hoblitzelle
to our club in the 2005 - 2006 year!
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We welcomed
Mt. Lebanon Baptist Encampment
to our club in the 2006 - 2007 year!
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We welcomed
Willie's Place at Carl's Corner
to our club in the 2008 - 2009 year!
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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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