Connecticut businessmen take a bite out of home heating oil costs
Their fuel co-op saved neighbors an average of $200 last year.
Three local businessmen are taking a bit of the chill out of winter for themselves and more than 100 of their neighbors.
While they can't take away the snow and ice, they do promise to save their neighbors money on home heating oil — about $200 a year in many cases.
They went from mailbox to mailbox in their neighborhoods armed with fliers advertising their idea. They started calling every local person they knew. And when all was said and done, they signed up 118 participants, representing 100,000 gallons of home heating oil annually.
Mimicking the way many municipalities and school systems do business, the Prospect Oil Group solicited proposals from local oil companies. Eight companies bid, and the lowest came from Lehigh Fuel in Waterbury, Conn., which offered members of the consortium fuel at 30 cents a gallon lower than the then-market price of $2.59 a gallon. The company also gave each customer a $75 discount on an oil burner service plan.
"On average, people saved between $150 and $200," says Mr. Flormann, general manager of the healthcare division for a Scranton, Pa.-based company called Noble Biomaterials. "People had enough of the high prices and decided they needed to do something to save."
Flormann and his friends take no money for their services and charge no operating fees.
"Once we have the company in place, we're out of the transaction," Flormann says. "Your deal is directly with the oil company."