price of Calor Gas?

Question

Do you know the basic price of LPG, from Calor Gas(bulk central heating type), it seems to be a secret, im in a five year contract with them and cant get out , I want to negotiate a price downwords, but dont know there pricing structure,thanks for any help .Alanwidget

Answer 1

Whilst you may think that knowing their input costs and margins gives you some sort of "power" to re-negotiate, I would suggest that, in reality, it all comes down to the Contract terms & conditions.

I assume there are penalty clauses for failing to take some minimum volume ? (otherwise you could just source 100% from elsewhere and pay them nothing) ... is it worth taking the minimium only from Calor and sourcing additional volumn from elsewhere ?

I suggest you identify and price up an alternitive source of supply and balance this against the penalty costs for various proportional volumns ... and then go back to Calor with the 'lowest cost' mix basis data and a 'I'll start sourcing from elsewhere unless you give me a higher discount' story