In certain areas, natural gas prices can be negotiated.
In many markets, the supply of natural gas to residences is monopolized by a single, government-sponsored utility, leaving consumers no opportunity to choose the company they want to supply their home heating fuel. However, in some places, such as certain areas of Ohio, consumers are allowed to pick from several suppliers. In some places, individuals may request a specific supplier, while in others a whole community must make the request. In all cases, it can be financially beneficial to negotiate with these companies in an attempt to obtain lower rates for their services. Does this Spark an idea?
Instructions
1. Gather information. In order to present the most compelling case to the various gas companies, you need to know as much as possible about their various rates and services. Consult company websites for information about their price per thousand cubic feet of fuel as well as additional fees for delivery, maintenance and other services. Know how much gas you plan to consume.
2. Develop a line of argument. Natural gas suppliers will not generally offer lower rates simply by being asked. Consumers should offer a compelling argument, such as the fact that they are prepared to buy a large quantity or that competitors offer lower rates. Of course, don't tell an untruth.
3. Contact suppliers. After determining the companies capable of supplying your heating gas, approach them individually. Generally, the more personal the format in which you can discuss the possibility of being offered lower rates the better: Not only does personal contact establish trust, but it's harder to refuse someone you're speaking to in person than someone to whom you're communicating by mail. If possible, meet face-to-face.
4. Present your case. If possible, tailor your argument to each individual company. Besides different rates, some companies may offer different services, such as a money-back guarantee that service won't be interrupted, or a discount if a certain amount of gas is used. Do your research and then apply it.
5. Use the companies' offers against each other. Companies may come back with a counteroffer. After they do so, use each company's lower offer against the other others' offers as leverage. For example, if one company offers natural gas at $10.50 per thousand cubic feet, inform a competitor of the lower price and give the competitor the chance to beat it.
6. Choose a supplier. When all the information is in and each company has made its final offer, pick the company whose rates and services best match your needs. Before you sign the contract, be sure to read it all the way through to make sure it matches the agreed-upon terms. Once signed, contracts can be very difficult to alter.
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