Northern Michigan Propane Co-op

We have the answer! Continue to read about what we have done in one neighborhood. You can join this Co-op and reap the same benefits.

The purpose Northern Michigan Propane Co-op is to negotiate the best price per gallon for our members. It's that simple. There are three simple steps to get the same great pricing that this neighborhood is experiencing.

We negotiate with the major propane vendors to supply the total amount propane for our Co-op. The more volume we project to use for the year the lower the cost per gallon will be.

Purpose: The purpose of the Guthrie Lake Propane Group is to secure the lowest possible price per gallon through a group effort. GL homeowners have the choice of joining the group or not. There is no cost for joining.

Why do we want to do this? To lower our propane cost. Ask your neighbors - we are all paying different prices, some as high as $2.49 per gallon and as low as $1.29. I have a friend that owns his own tank and last summer got a rate of $0.89 per gallon.

How are we going to do this? We, as a group, will bid out (to all the area propane companies) our groups total gas volume for one year and then do it again every year thereafter. We’re looking at bidding out possibly a quarter million gallons at one time. When the bid goes out, we will make it so that we can accept or reject any and all bids if we choose.

As for the tanks, we could lease them from the winning bidder or purchase our own individual tanks. I think owning your own tank is the best way to go. We can change companies without having to change tanks, tanks don’t have to be empty when we change companies (to the lowest bidder), the companies don’t have to worry about changing tanks, and our cost per gallon should go down.

How are we going to handle the purchase of our own tanks? I see two options. One, we will bid out to the manufacturers of the tanks the purchase and installation of all the tanks for the lowest bid. The other is to bid the purchase and installation to the propane companies and have the purchase price spread over a 12 month period with your gas bill.

As a homeowner in GL, I, Jerry Lambert, am willing to assist in obtaining the lowest price per gallon. I know this will work. Why, because this is what I do every day. I own a consulting forestry firm that is dedicated to managing our client’s properties to the highest potential what ever their goals are and to ensure that they get the highest price possible and the best job done at the same time. How do we do this? Short and sweet, we bid out the jobs to all the purchasers of the products we are selling thereby allowing as many companies that need those products the opportunity to purchase them, except we are going after the highest price possible. We want to do the same thing except we want the lowest price for our propane.

If you are interested in joining the group, please fill out the bottom questionnaire and return it by February 15, 2006. We would like to bid this out in late April to early May. If you have any questions please call at 989-619-2882