Competing fuels. Steel prices. Fuel prices. Plus — at the time of writing this — a tariff picture that changes by the day. This can all add up to rising operational costs, eroding customer bases and pressure on a family propane marketing business that wants to maintain — or better yet, grow and fortify — their revenue and customer base.
Tank monitoring, streamlined logistics, better customer engagement: These all have a role to play. But when the playing field is chaotic, the opportunities for practical innovation can be right in front of you. It’s all about parlaying existing strengths into continuous improvement and tapping the talent and knowledge you already have.
Mine the Knowledge in the Room Right Now
You’ve already invested in your biggest innovation asset: The organizational knowledge of your account people, drivers and other support staff. Have you mined it?
Keep it simple: Set aside a dedicated monthly work group where employees can share ideas and challenges they’re seeing in the field. Capture the feedback with a simple document you can share and focus on a finite problem where progress is within reach and measurable.
You don’t have to turn the company upside down. Focusing on customer outreach, establishing a process for dealing with the No. 1 concern you’re hearing from your customer base or applying the crew’s field knowledge to improving a route doesn’t require extra equipment — just some intention and regular measurement. (For inspiration on the benefits of not trying to “boil the ocean,” check out this classic from Peter Bregnan in Harvard Business Review: hbr.org/2009/10/i-lost-18-pounds-in).
Are There New Customer Bases Developing in Your Service Area?
If you’re already good at servicing a wide area that includes a lot of remote/off-grid customers, new applications for propane could let you extend beyond typical residential and commercial opportunities without a massive rework of your model.
Example: In recent years, Metsa was able to expand into agriculture when we saw the emergence of more propane-fueled vehicles in the sector. We were getting inbound calls for service, so we leveraged our network of gas equipment partners to meet the rising demand, some of whom already sold our underground propane tanks. We had the fuel and the in-house fleet. They had the fuel station-ready hardware. It was a natural move.
Propane demand can spike or experience increasing demand across many sectors (like aviation). Get ready to ride the wave when you see one forming in your market.
Detect & Stop a Quiet ‘Resource Thief’
Some businesspeople are surprised when they take stock of their expenses and find that they’re spending a disproportionate amount of money on a routine operational blind spot. Day-to-day pressures keep business owners from stepping back and taking stock.
What does it actually cost you to own or lease a tank over its lifetime? What is monitoring telling you about your tank performance and customer usage? When’s the last time you took a 100-foot view of the data you already have? What can be streamlined or automated entirely with an affordable piece of software, as some propane marketers are already doing for functions like customer service or routing?
It takes more work and investment, but taking major capabilities in-house can also pay off in reduced costs, more operational predictability and better service. This was our rationale for owning our own logistics fleet, which streamlined delivery and backed up the high level of service we promise to our customers for safe, on-time deliveries. Our trucks are one of the operational “insurance policies” that reduce external variables and help us protect and expand our base.
Where Can You Team Up Without Expensive Investments?
There’s enough going on without having to onboard expensive new tech, gamble on capital investments or develop new services. Where can you go further, together, and effectively solve a real problem for customers?
Many of our customers’ propane tanks sit underground. This places a premium on longevity and creates a demand for specialized assurance solutions because you often don’t have the time or manpower to send someone out for manual readings — or worse, dig up that tank for deeper inspections — just to meet regulations.
That’s why it made sense for us, for example, to team up with Mopeka, who makes cathodic monitoring solutions for underground tanks. Now we can install cathodic monitoring technology on our factory floor and provide a one-stop for underground tank customers for both an excellent piece of steel and an operational advantage.
Your propane business has natural allies and synergies you can use to build referrals and co-selling opportunities:
- HVAC and plumbing companies
- Homebuilders and contractors
- Local agriculture businesses
- Generator and appliance businesses (the stronger their regional footprint, the better)
- Real estate agents, property managers and leasing professionals
Getting to know these people over a cup of coffee isn’t just a meeting — it’s a key part of building relationships that drive business forward.
