Tuesday, December 30, 2008

A Heating Oil Retailer Comments on Retail Pricing Programs

On NPR's Marketplace, Peter Bourne of Bourne's Energy in Morrisville, Vermont comments on market volatility and customer programs. Hear it here, or read it here.

An excerpt of the conversation follows:
Ryssdal: Did you learn anything this past six months with this wild swing in oil prices that you're going to use this coming summer and fall as you start pricing things?
Bourne: Every year, Kai, it's a different game. It really is never the same. What I did last year is not what I can do this year. But the one thing is, with the markets what they are, and recognize the volatility and try to make sure we don't have customers in positions that are going to be as adverse as some of the ones that locked into a fixed pre-buy this year. That was . . . they're really feeling abused. I understand that. We're feeling abused, but we're buying that oil at a price that's just ridiculous in relation to today's market.
Do you feel similarly to Mr. Bourne? What programs are you prepared to offer to help your customers next year?

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