20 Aug 6 Factors to Consider in Choosing an LPG Supplier
There are a number of LPG suppliers in the market. You can find them on the internet, advertisements, or even from word-of-mouth. Choosing an LPG Supplier for your business can be time consuming especially when you are looking for the right one.
Many customers enter into a contract with an LPG Supplier without fully knowing the market of asking the right questions that they will be needing for their business. This can lead into a costly or frustrating mistake in the future.
Before getting into a contract with an LPG Supplier, whether you have a small business or a commercial one, try to remember the following that can help you in choosing an LPG Supplier.
1. Pricing
Most companies will offer you an introductory price, but then will reserve the right to vary the rate. If you are going to be a large user of LPG, some suppliers will offer a formula price deal where you pay the equivalent of the wholesale price of gas plus a fixed margin. Although, this will only apply to large business users and may not be available from all suppliers.
2. Other Charges
Aside from the actual LPG fees, you must know what other charges you might have. Some LPG Suppliers will request for a contribution towards the initial installation, while other companies will waive charges.
If you decide to end the contract, are you required to pay a certain fee—is there a termination charge? Some suppliers may apply a charge within a contract, therefore, it is important to clarify this before sealing the deal. Consider asking about the maintenance charges, insurance and hiring the tanks used for your business. Make sure you compare what suppliers are charging.
3. Contract Period
For some companies, contract periods are no more longer than two years for domestic clients. For commercial clients, they are usually between 1-2 years. Always ensure you have the term of the contract specified with your LPG supplier.
4. Customer Support
LPG Suppliers have after sale customer care and it does vary with the type of problem you want them to help you with. Some suppliers may pass you between departments when it comes to different queries.
5. Distribution and Product Availability
If there is a sudden occurrence wherein everyone wants to fill their gas up at the same time, can the supplier guarantee a delivery? Ask about the size of the tanks available, distance to the nearest depot, storage facilities and products that are available. This is in case an event like that happens, your business will be ready.
6. Timescales
Take note of this especially when you are in a business that needs to function right away. How long will it take from signing an agreement to the actual installation? This could vary from a week to several months and that depends on the workload of a supplier.
Some companies may even use third party contractors to install tanks and other devices. Hence, when it comes to installation, it is much better to find an LPG supplier that already has LPG installation services available.
When choosing an LPG supplier for your business, make sure you research about the company, talk to them, compare their prices to different suppliers. It is better if the LPG supplier can also install LPG and provide other services that can help your business. It can help you minimize the cost and mistakes in the future.
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