A funny thing happened to me on my way to being a customer.
For the past few years, I have cringed when I saw the little yellow ticket hanging from my front door. It meant that AmeriGas, my propane company, had filled my tank. My 1,000 gallon tank. As prices continued to rise, I would routinely get our annual heating bill of $1,500. One year, it was $2,300. Last year it was $2,800, and six months later, there was an additional $1,300. Considering we only heat our home for 4 months a year notwithstanding, this seemed excessive. Sure, it heats our hot water, and my summer barbecue habit, but those are consistent.These bills spurred the new me in 2010, which led to installation of solar panels, and now, our wood pellet stove, both for the sake of not only saving a few bucks in the long run, but in doing my share for the environment.
On New Years Eve, I was talking with some friends who had differing propane companies. They mentioned they were paying around $2.50 per gallon, and were pretty sure AmeriGas routinely charged over $4.00 per gallon. I wasn’t certain, since AmeriGas only put a total on the bill, never a per gallon amount. The additional problem is that I was a hostage. Since AmeriGas had installed the tank, it was contractually obligated to use their propane. A few days later, I contacted AmeriGas to find out that my per gallon rate was $4.61. I advised them that there were competing rates that were around half that, and was told that I could have “locked in” my rate at $3.29 per gallon, but since I didn’t I paid “market” rate. Since they were unwilling to offer a more competitive rate, I told them was going to shop around.
AmeriGas was then nice enough to remind me of my contractual obligation. Since they had provided the 1,000 gallon tank (which was buried 6 feet beneath my side yard), I was not allowed to shop around. I asked them how much it would cost to buy my tank from them, knowing that the going rate was about $2,700, and knowing that, in the long run, I would have about a two year ROI by buying the less expensive fuel. I was advised that it was against their policy, and there was “no way” to buy the tank from them.
Now, I was mad. Not only was I receiving poor and extremely high priced service, but I was trapped? I told them I still wanted to cancel the service, and told them to come remove their property from my yard. The branch manager, Ann, (AmeriGas in Ranson, WV) then advised me that they would NOT excavate, but said, “if you want to have it dug up, we’ll come get it.”
I contacted my friend from New Years Eve again, and he put me in touch with Aaron at Holtzman Oil. I explained my dilemma to Aaron, and he was at my house that afternoon. He offered me an ongoing rate (not a teaser rate) of “not more than” $2.50 per gallon (based on their cost plus formula), and offered to dig up the old tank, put a new tank in the ground, re-sod my yard, and include a clause that would allow me to buy the tank if i was ever unhappy at Fair market Value. All at no charge. No cost for the excavation. No long term contract. No minimum purchase. No nothing. Up front pricing.
Sign me up, Aaron.
AmeriGas had multiple opportunities to keep me happy. Knowing their cost is slightly south of $1.75 per gallon (based on futures pricing that I researched), they had a LOT of wiggle room on pricing. They also could have sold me a $2,500 tank for $3,000, and I probably would have taken the offer. Instead, they took a very cavalier attitude, and said, “it’s not possible”, rather than trying to find a way to make me happier. Perhaps one customer isn’t worth all o the hassle. I’ve only been a customer for 6 years, and I figure that, based on their profit margins, then probably came out about $10,000 on the plus side over those years. Not only were they non-competitive, but they were not-friendly, and somewhat deceptive.
As a customer, I don’t normally give multiple chances for you to get your hands on my money, but I did with AmeriGas. You made it very difficult to give you my money.Even when I contacted your corporate office in Pennsylvania, and got a form email back, saying you would contact me within 2 business days to address my concerns, you did not.
Ann, you may send your guys out to pick up your tank. It is at the end of my driveway. There is a very large sign on it, clearly identifying it as your property. It says, “AmeriGas: Here is your tank that you told me to dig up. I found a much lower price from several competitors.” Based on your level of customer service thus far, I expect it will probably take you a month or more to send your folks out to remove your debris from my yard, but there is a very large sign there, as I mentioned, so that your driver (and anyone who drives by) can see it clearly. I figure my neighbors (some of whom are customers of yours) may be able to help the driver find the tank if he gets lost. You didn’t make it easy for me, but I want to make it easy for you.
Please come get your tank, Ann.
