Are You Missing These Cost Cuts In Your Business?

Running a propane business comes with constant pressure to manage rising costs while keeping service strong. You may have already taken the usual steps like tracking fuel spending and working overtime. Still, there are often hidden places where money slips away without notice. Finding and fixing these overlooked areas can do much to increase your margins without hurting operations.

Cutting costs doesn’t have to mean cutting corners. With the proper focus, you can simultaneously tighten your operations, improve customer service, and reduce waste. But first, you need to know where to look.

Small Equipment Waste
One of the easiest areas to overlook is small equipment. Hoses, gauges, fittings, handheld devices, and other low-cost tools often disappear, break early, or get replaced before they need to be. Without a system to track these items, you may be buying more than you need – and losing money without realizing it.

You don’t have to micromanage every wrench, but having a regular review of your tool purchases and usage can show trends. You might discover over-ordering, poor storage practices, or a lack of accountability. A simple check-in with field staff on their tool condition and needs can reduce replacement frequency.

Unmeasured Idle Time
Idle time is one of the quietest money drains in your fleet. Whether it’s long loading waits, inefficient dispatching, or time spent on poorly planned routes, those engine hours stack up. More engine time means more fuel, wear and tear, and unproductive labor.

You may already track route efficiency, but it’s easy to miss where the time goes unless you dig deeper. Ask your drivers where they’re waiting. Look at the sequence of stops. See if there are overlaps between routes or room to adjust schedules for better flow. Reducing even 15 minutes per truck each day can save thousands a year. Today, there are a variety of route optimization software options that can greatly help in this arena.

Misused Storage Space
Yard space, warehouse shelves, and tank storage can all impact your bottom line more than you think. Poor layout and storage use lead to wasted time for pickups and restocking. If drivers or technicians spend extra time looking for fittings, filing paperwork, or staging equipment, that’s valuable labor time not spent on the job.

Reorganizing a workspace often leads to faster turnaround and less double-handling. Creating better flow in your tank yard or office may seem like a small change to implement, but it can make a ripple effect on your operations that saves hours each week.

Avoidable Service Calls
How many of your service calls are caused by a lack of customer understanding, like empty tanks or incorrectly reset systems? If your techs spend time on avoidable service calls, you’re absorbing costs that don’t need to happen.

A focused initiative to educate customers on how to read their tank gauges or use simple system checks can make a big difference. This may include handing out printed instructions, adding video links to your website, or offering short checklists during service visits. Fewer avoidable service calls mean more time for profitable work.

Poor Follow-Up on Add-On Revenue
Tank sets, regulator replacements, leak checks, and additional service work are often missed when no one follows up after a delivery or installation. You’re missing steady income opportunities if your team isn’t trained to detect and report future work opportunities. These service jobs also help strengthen customer ties and improve safety records.

Train your drivers, techs, and sales staff to spot and log potential add-on work properly. Create a simple system that ensures no request or repair suggestion is forgotten. Even better, review completed deliveries weekly to highlight key opportunities to re-engage customers.

Missed Reviews of Vendor Costs
Vendors change prices more often than you think. If you haven’t reviewed your supplier rates in the last year, you could be paying more than necessary. This includes not just propane itself, but also parts, software, maintenance services, and uniforms.

Make it part of your regular operating schedule to check vendor contracts. Ask for updated bids, especially if your volumes have grown. You may not always switch to a new supplier, but comparing prices keeps your vendors honest and gives you leverage to negotiate better terms.

Business Implications
Cutting waste doesn’t always mean making significant changes. Small, subtle habits often have the most critical impact over time. Take time each quarter to review these often-missed areas. You’ll see real savings without affecting your customer experience or team morale.

Propane businesses that stay competitive in today’s market know where their money goes – and where it shouldn’t. By focusing on the hidden costs that most retailers overlook, you protect your profit while keeping your service strong. Every saved dollar strengthens your ability to invest in what matters – your team, your customers, and your future growth.