As we look to what’s coming in 2025, it’s clear that technology will play an increasingly vital role in all facets of the propane industry, opening doors to new avenues for growth and advancement.
For propane marketers, innovative technologies are helping to streamline operations and boost efficiency. Marketers now have the ability to effortlessly track propane usage and maintain optimal inventory levels. This is particularly crucial given the unpredictable nature of the weather; a sudden cold snap or an extended winter can easily lead to a surge in product demand and potential supply shortages. The ability to anticipate and stay ahead of such fluctuations can prove to be a critical success factor.
On the consumer side, technology offers easy access to tools for monitoring propane usage and scheduling deliveries or service through user-friendly apps. Additionally, smart technology enables consumers to integrate their propane usage with other energy sources, creating a more holistic and efficient energy management system.
Ultrasonic smart meters, which operate in a similar way to tank monitors, are a prime example of these transformative technologies. They accurately measure propane usage and transmit this data daily to a central portal via a cellular connection. This real-time information gives marketers valuable insights into usage patterns and the ability to schedule propane deliveries accordingly, ensuring customers never run out of propane.
Moreover, smart meters give marketers greater control over product and deliveries. Since customers are no longer paying for each individual fill, the marketer can fill the tank at its discretion. This means the propane company has the power to decide how much propane is delivered to a tank and when, allowing for greater flexibility and optimization. Companies are leveraging this capability to fill tanks pre-peak season when the delivery schedule is less demanding and prices are typically lower. This strategic approach eliminates the need for deliveries during peak season, when resources are stretched thin.
Another significant benefit of smart meters is that they reduce the need for additional bulk storage. Residential tanks equipped with smart meters can now serve as alternative storage options. For instance, implementing 100 500-gallon tanks could potentially eliminate the need for a 30,000-gallon bulk tank. By leveraging smart meters, companies can optimize their overall storage capacity by utilizing company-owned tanks at customer locations. This essentially increases storage capacity without requiring any further investment. This innovative approach allows companies to draw down inventory in the spring, stimulate summer demand and build allocation amounts, leading to improved operational efficiency and cost savings.
Smart meters have also enabled some companies to transition away from “will call” customers, who require additional communication for delivery scheduling, to a more manageable consumption-based monthly billing system. This shift not only reduces administrative overhead but also provides customers with a more predictable and convenient billing process, creating a positive and stress-free experience, which leads to better customer retention.
Consumption-based billing is a service that is gaining traction among marketers, even though the adoption of propane meters is still somewhat limited. This service allows marketers to offer a pay-as-you-go model, which can be a powerful tool for attracting new customers and retaining existing ones, particularly if competitors are not offering this option.
From the consumer’s perspective, a monthly usage bill is often more manageable financially than a propane tank fill, which can be a significant expense. As product prices continue to rise, the ability to offer a more economical, consumption-based billing option could be the key differentiator between winning and keeping customers or losing them to competitors.
The primary difference between mechanical and ultrasonic smart meters is the potential for inaccuracy due to wear and tear on mechanical gas meters and degradation of their components. This may result in the marketer “giving away” propane. Ultrasonic smart meters offer a more reliable solution, as they are not susceptible to these issues. The absence of moving parts in the measuring chamber of ultrasonic smart meters reduces interference between the fluid and the measurement group, resulting in very accurate measurement over its lifetime.
In conclusion, smart meters will be a key tool for marketers to differentiate themselves and offer customers more options. Companies can leverage smart meters to enhance operational efficiency, drive business growth and provide customers with a convenient and modern approach to managing and paying for propane usage.
