State of the Industry
December 1, 2007 By LP Gas
What are the critical challenges facing propane retailers, and how are they being addressed?
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What are the critical challenges facing propane retailers, and how are they being addressed?
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Having the capability and desire to offer customers propane-powered zone heaters, grills and other indoor and outdoor auxiliary appliances can add some significant sizzle to your bottom line. Marketers actively working these categories say they are achieving a competitive advantage over retailers that don’t supply this equipment or the related installation and maintenance services.
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Beyond the standard insurance company costs of marketing, loss control and underwriting, we have liability defense costs.
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Instead of the coarsely drawn adult cartoon of a bespectacled, beleaguered, paunchy Texan propane retailer, this face of the propane industry has the strength of Mr. Clean and apple-pie appeal.
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The media is full of images touting every kind of product. Beer cans sprout from billboards. Sporty new cars sparkle on television ads. White teeth gleam off magazine pages.
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With rising oil and materials costs, weak winters and unsure economic times, propane retailers are always looking for additional sources of income.
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For a variety of companies in myriad industries, a showroom is a great way to show off the latest and greatest products to new and existing customers.
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When Jim Ferrell returned from semi-retirement to run the Fortune 1000 company that bears his name in 2001, the 61-year-old industry icon already had decided that drastic change was critical in the face of stiffening competition and spiraling prices.
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Propane marketers may soon have a way to evaluate competing brandsof equipment beyond the promotional material distributed by productmanufacturers and vendors.
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Since 2001, Americans have been introduced to the exceptional energy from smiling babies, contented babysitters, stinky skunks, busy moms and the popular Energy Guys featured in advertisements on television, radio and print.
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