Cynics assume that local fuel oil dealers like it when market forces drive prices up, figuring those dealers make more money. In reality, local dealers of home heating oil in Quincy MA benefit a great deal more when prices are lower. They generally set their profit margin at the same level no matter what the price is, meaning they don’t get a windfall if prices go up. Instead, they deal with more inconvenience and hassle, just as their customers do.
When homeowners can’t afford heating oil prices, they call as their supply starts to run out and ask for a minimum delivery amount. These means drivers who deliver Home Heating Oil in Quincy MA spend more time making smaller deliveries to various locations instead of having the process streamlined. In contrast, when prices are lower, homeowners can sign a contract specifying that deliveries will be made to keep the tank topped off when the driver happens to be in the general area. They know they can afford this service instead of having to monitor the situation on a daily basis.
Another problem a company such as Metro Energy wants to avoid involves homeowners who buy fuel oil on credit and then can’t pay the bill. Some keep-fill contracts are set up to provide invoices at the time of delivery, with the bill expected to be paid within a certain number of days. The homeowner might receive a discounted price per gallon if paying within 10 days, for example. The company generally expects full payment within 30 days. It’s important for small businesses to receive payment in a timely manner. When a large number of customers take longer to pay, the service may start to experience cash flow limitations.
Home heating oil services prefer situations like the one the northeastern part of the country is experiencing in the winter of 2015-2016. Oil prices are low and temperatures have been mild, which is remarkably different from the circumstances the previous two winters when oil prices were much higher and the season was brutally cold. Residents are generally enjoying the more affordable season, even though some missed having a white Christmas.
