What is a Heating Oil Co-op and how does it work?
A Heating Oil Co-Op is a time tested solution to the rising cost of heating. Co-ops are nothing new, but the concept of applying the principles of a co-op to the problem of the high cost of heating oil is.
The price of heating oil rises during the cold weather making it expensive to heat a home or office. The good news is this brilliant co-op strategy actually works to reduce the cost of purchasing heating oil because it is based on a group rate which is cheaper.
Heating Oil Groups collect members who join the Heating Oil Co-Op, and the membership numbers gives the group strong bargaining powers. With a large membership the Heating Oil Co-Op or Heating Oil Groups have the ability to negotiate a lower price for heating oil from the supplier. The supplier gains a large group of new contracted customers in exchange for the rate reduction. Each member receives heating oil at a much cheaper rate.
As the membership of the Heating Oil Co-Op or Heating Oil Groups grows their buying power increases and each member receives an even better price on a heating oil delivery. Because the heating oil supplier has the opportunity to expand their customer base, they are more willing to negotiate the price of heating oil with a group, rather than an individual.
Heating Oil Groups are popping up just about everywhere and joining is usually free. The first step is to find a local group and research it. The important information to find is how long the group has been in operation, how large is the membership, and what kinds of heating oil saving do they offer. The benefits and savings offered by the group should be clearly stated. The Mass Heat Group boasts of a 25 to 35 cent per gallon savings for their membership. When you add up the cost of heating oil for the cold months for home or the office, that is a significant savings.
Depending on the co-op or group there may be more benefits than cheaper heating oil available to the membership. For instance, a group may offer extra heating oil related services to its membership. Additional benefits depend on what has been negotiated between the co-op and the heating oil supplier. This is why it pays to research and compare a variety of groups or co-ops before deciding on which one to join.
John Martin is the owner of this website and writes articles for his own site. For further details about Heating Oil Groups and Devaney please visit the website.
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