There sure are alot of misconceptions of how the propane industry works. I work for a fairly large propane-oil company and we own a fleet of tractor trailer transports. So with that said and not going into numbers I can tell you that it cost alot more money than people think just to have the business. We only make a small profit on a averge winter. As far as prebuy goes we can't prebuy in the same sensce as we offer our customers. We can only buy 50% of the gas that we think we will need. The other 50% (or more if we guessed wrong) is at the current rack price the second the transport hits the load button at the loading rack. So when we offer our prebuy the customers have all winter to pay us. We have 10 days to pay in cash. SO with every prebuy cust. we are sticking our company on the line. What if gas went to $4 or $5? We still have to buy the other 50% at that price and the prebuy cust. will stay at $2.50 (or what ever there company lock them in at). We also offer a capped price which is .20 more than prebuy because that is what it cost us. But the capped price goes with the market. If gas goes down so does there price If gas goes up they will not go over the cap which would be $2.70. So our comapany anyway lets our customers make the choice of what gamble they want to take. We are very honest about pricing and let our customers make there own decissions about what they think the market will do. I hope this helps some people understand a little better and I really can't get into specific numbers about the cost of doing business, but how much of a markup over wholesale price do you folks think is reasonable?
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Today's Featured Article - Show Coverage: Godfrey, Illinois Country Days - by Cindy Ladage. Except for last fourth of July's Old Gold show in Springfield, Illinois, I don't remember when it was so hot. Nevertheless, the heat didn't keep vendors and visitors alike from enjoying the third annual Country Day's Event. Jane Elliott said the event was originally a one man show. "Barry Seiler, owner of Country Town Farm Supply store used to invite people up to the Johne Deere store. He would give hats and a free meal for everyone that brings a tractor." Elliott said while this
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