“Our survey paints a picture of the retail propane industry in the northeast U.S.,” said Joe Ciccarello, Managing Partner at Gray, Gray & Gray. “There is an old saying that ‘What gets measured gets managed,’ and we hope that propane dealers will use the results of the survey as benchmarks against which individual company performance can be compared.”
This year’s results paint a picture of an industry that is robust, with sales and margins both increasing over the previous season. Dealers are also optimistic: 53 percent of respondents are considering acquiring a competitor (up from 44 percent last year), while 56 percent are thinking about transitioning the business to the next generation (up from 40 percent last year).
Some of the other highlights of our 2017 Propane Industry Survey results include:
- The average propane company serves 4,717 residential customers and 679 commercial customers. The number of residential customers is up 5% over last year while commercial customer counts nearly doubled.
- Residential gallons increased by approximately 5% (1,667,680 gallons sold during the 2017 heating season versus 1,588,238 gallons in 2016).
- Organic growth in gallons was primarily through conversions while new customers were generated largely from sales teams, customer referrals and marketing efforts.
- The average targeted margin for residential deliveries last year was $1.29 per gallon, up from $1.10 in the prior year.
- For commercial deliveries, the average targeted margin was $0.71 per gallon, up from $.63 in 2016.
- 53% of propane companies are looking to acquire another company, up from 44% last year.
For additional information, contact Gray, Gray & Gray at (781) 407-0300.
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