Flatten The Propane Curve

Tired of hearing those words yet? The W.H.O has repeatedly underlined the importance of “flattening the curve” in order to tackle the coronavirus outbreak, calling on countries around the world to impose sweeping public health measures. While it may be the global mantra for the healthcare industry the last few months, we can also apply a fresh spin on it specifically geared to the propane industry.

So what exactly is flattening the curve?

In epidemiology, the curve refers to the projected number of new cases over a period of time.

In contrast to a steep rise of coronavirus infections, a more gradual uptick of cases will see the same number of people get infected, but without overburdening the health-care system at any one time.

The idea of flattening the curve is to stagger the number of new cases over a longer period, so that people have better access to care.

What does this have to do with propane?

We can apply this same concept to the propane industry. Common problems still plague the industry as bottlenecks at supply terminals during peaks seasons lead to supply interruptions, long transport loading lines, price spikes, gas outages, customer losses, and safety issues. Not to mention winter weather conditions causing complications for transport and bobtail deliveries to energy customers. All of this leads to reduced profitability, a highly stressed team, and flawed credibility.

Why does this happen?

On average, nearly 75% of propane is sold in the coldest months, or between Thanksgiving and Easter each year. As you can see in the Midwest, there is a steep increase during the winter months. This means that demand is placed on the industry infrastructure heavily during those months, and hardly at all for the rest of the year.

What’s the Solution?

Flatten the curve…

In contrast to stark upticks in demand caused by extreme cold, late harvest seasons, long winters, or even COVID-19 itself, a more gradual delivery process that backs up into the off-season can relieve a significant amount of pressure of the propane infrastructure during peak months. In the same way that we want to flatten the curve of the COVID-19 pandemic, we want to flatten the curve of propane demand. Why? So the infrastructure can sustain the demand.

In response to this issue, we have created One-Tank. One-Tank is a remarkable tool that approaches propane tank monitoring from a bobtail maximum return to deliver what your customers want, dependable fuel supply. Not only does One-Tank do everything a tank monitor does, it can also significantly winter-proof your propane business and the industry at large. One-Tank provides marketers with real-time visibility and control of available storage in existing serviceable tanks. Instead of only monitoring liquid levels inside the tanks, One-Tank helps you manage the storage capacity within each tank, calculates how much total storage is available to you, and helps you efficiently route bobtails to maximize gallons per stop while minimizing gallons delivered per mile.

Using our proprietary technology for metered billing to propane consumers, One-Tank opens up your tertiary storage investment in tanks already in service. This allows tanks to be filled in the off season when roads are clear and prices are low. Propane consumers will have the convenience to pay for what they use and propane marketers will have the convenience to fill tanks when it best suits each of you.

When this practice is applied in large scale to tertiary tanks, the supply curve flattens. So does the curve for the propane industry. You can now be proactive and plan for the winter ahead, alleviating price spikes to your business and put extra profits into your business while meeting demand and maintaining manageable control over your business and the industry.

Still Not Convinced?

You might be thinking “ok, that’s great for the industry, but what’s in it for me?” Great question! We have two answers for you.

1)   Money

Double your return on investment – An average Winter yields at least a $0.20 price disparity between the off season and peak months. How many gallons can you move in the off season?

2)   Storage

Add storage capacity that not only increases the number of customers served but increases propane inventories for a fraction of the cost of bulk storage – The average propane marketer in the U.S. services about 2,500 tanks. That’s a lot of steel and a lot of unused storage space. Just under 1 million gallons of tertiary storage (depending on tank sizes).

But wait, there’s more!

Since this is still a tank monitor, you can enjoy all the normal benefits of tank monitoring.

Such as:

  • Liquid level Notices, Reports and Customer Satisfaction.
  • Email & Text Alerts for Safety and as offered as a Customer Service to resell.
  • GPS tracking of Tertiary Storage.
  • Optimized Routing, Bobtail Operations and Fuel Supply.
  • Back Office Integrations for Optimum API Applications, Accounting & Customer Billing.
  • Mobile App For Your Customers to Track Inventory and Consumption (can be marketed)
  • Global Connectivity that Enhances the Value of your Business to Customers and Potential Buyers.

Before buying more standard tank monitors, bulk storage, or bobtail trucks for the upcoming Winter – Contact us.

Start preparing for Winter today!

Learn more at www.one-tank.com.

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