Your Best Intentions Could Be Costing You
In propane, as with every industry, every cent matters – especially when margins are tight. Yet many companies quietly lose thousands of dollars each year without even realizing it. How is this possible? Financial losses are not always due to big mistakes or fraud. Often, they stem from your team doing favors for long-time customers, trying to be helpful, or making quick judgment calls under pressure. They subtly occur through untracked discounts and waived fees that never get logged or reviewed.
These small amounts may seem harmless on their own, but when added up across dozens or hundreds of accounts, they become a hidden drag on your bottom line. And while keeping customers happy is essential, this priority shouldn’t come at the cost of your profitability.
Where the Profit Slips Away
Untracked discounts usually come from skipped delivery fees, waived tank rentals, and informal price breaks. It could be a dispatcher telling a driver to waive a trip charge or a customer service representative adjusting a bill to avoid an argument. Sometimes, these decisions are made without any documentation. They disappear into the system without a trace – and without your approval. The issue isn’t the occasional exception. It’s when these exceptions become regular corporate habits, and you lose control of pricing without even noticing.
Why Good Intentions Can Lead to Bad Habits
Many propane businesses pride themselves on excellent customer service. That’s a strength. However, the company takes a silent hit when your team adjusts prices on the fly to avoid complaints or to “help” loyal customers. These acts are well-meaning but financially harmful over time.
Even more costly is when these favors aren’t tracked. You have no way to measure the real loss if you don’t know who’s giving out what – and how often. And without that clarity, you can’t understand or fix the problem.
What You Should Be Tracking
You don’t need complicated tools to spot these leaks. Start by ensuring that every discount or waived fee is recorded, no matter how small. This can be as simple as a logbook or spreadsheet that shows the date, customer, amount, and reason.
Look for patterns. Is one employee waiving more than others? Are certain customers always getting deals? Are fees being waived during peak delivery times when trucks are fully booked? These clues can help you find the gaps and close them before they grow.
Build Clear Rules and Communication
The next step is to ensure that your team knows what they can and can’t waive. Set clear rules about discounts and fees. For example, maybe tank rentals can be waived for new customers only with written approval. Or perhaps only managers can give price breaks above a certain threshold.
Just as important is to teach your team how to explain the value of your products and services. Customers are less likely to push for a discount if your staff explains why a trip charge exists or if your price includes full-service support. When your staff understands the value of what you’re offering, they’ll defend it instead of marking it down or giving it away.
Turn Small Leaks Into Smart Wins
Once you tighten your tracking, you might find hundreds or thousands of dollars in missed revenue each month. This doesn’t make you stingy – it makes you the leader of a stable, profitable business. You can still take good care of your customers, but make sure you do it in a planned, visible, and approved way. You’ll also earn more trust and respect from your team when everyone follows the same rules. And that consistency helps your business grow without guesswork or financial surprises.
How This Keeps Your Propane Business Strong
When you stop profit from leaking out in small, hidden ways, your bottom line improves without the pressure of adding new customers or cutting services. That means more cash to invest, better pricing control, and a healthier operation overall. It’s not always about selling more gallons – it’s about keeping more of what you’ve already earned.
