In 2014, in an effort to obtain more competitive pricing, KLCOA sent a Request for Proposal to all propane suppliers in our area to ask if they would be interested in establishing a Group Buy arrangement with interested KLCOA members. Only Superior responded and KLCOA established a Group Buy relationship with them.
Group Buy participants have common terms (5 year contract, $49/year tank rental, etc) but individual supply contracts with Superior Propane. Each year in mid-summer, KLCOA discusses a fixed price for the coming year for the group with Superior for those that consume over 1500 litres/year and a slightly higher price for those that consume 500-1500 litres. Establishing a group price allows Superior to book futures contracts for supply of this fuel at a time when prices are generally at lower levels and provides certainty for customers as to the price they will pay whenever fuel is delivered to them over the coming year.
While we have not done an exhaustive comparison each year, our sense has been that the KLCOA Group Buy price has been the lowest – or close to lowest – available in the local market.
Several years ago, we invited the Redstone Lake Cottagers’ Association to join the group to increase our size and market leverage. We currently have about 50 members in the buying group.
We have just set the fixed prices for the Buying Group for the 2020-2021 year. Several years ago, we decided not to publish the Group Buy price as it had become apparent that it was being used as a benchmark by other propane suppliers. We encourage them to offer their best competitive price to their customers.
If you are already a Superior Propane customer and are interested in joining the Buying Group, it should be relatively simple to do so. Please contact Tayce Wakefield (taycewakefield@yahoo.ca) who coordinates the Buying Group for KLCOA/RLCA or Jeff Voyer at Superior Propane jeff_voyer@superiorpropane.com
If you are currently with another propane supplier and are interested in joining the group, you should first check your contract with your existing supplier. Most suppliers have fixed terms (typically 5 years), which make it difficult or expensive to switch suppliers during the term of the contract. It may make more sense to plan to switch when you are approaching the end of your contract. If you do not have a fixed term with your supplier, there may be a “switching fee” or penalty clause to move to another provider, which you will need to take into consideration. You should also look at other terms such as the tank rental cost which varies considerably from supplier to supplier.
If you decide to join the Buying Group, you will need to have your tank swapped out for a Superior Propane tank (as propane suppliers will only fill their own tanks), and Superior will inspect your connections and all gas appliances to ensure that they are up to code. (If you are thinking of switching, we’d suggest that you speak with Superior before advising your current supplier as Superior can advise you of strategies to make the transition as smooth as possible and to ensure that you obtain the value of any remaining propane left in your tank).
If you would like more information on joining the Buying Group, please contact Jeff Voyer at Superior Propane (jeff_voyer@superiorpropane.com) or Tayce Wakefield (taycewakefield@yahoo.ca)