ComplaintsforWilson of Wallingford Inc.

• Initial Complaint

  08/01/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Wilson is not willing to negotiate the exit of an agreement. We have a 1000 gallons tank installed by them in 2015. They state we have to pay 4000 dollars to purchase the tank and not be tied to a contract with them. This tank festival 1500-2100 brand new. The tank is now entering its 7th year of service. This tie to the tank by placing a large fee of purchase is unethical in the stance the tank has lost value.

  Business response

  08/02/2022

  Hello *******,

  Thank you for bringing this complaint to my attention. I have spoken with **. ******** about the tank buyout over the years and explained our business practices more than once. In fact, I emailed him about this yesterday and addressed it again, albeit in lesser detail than prior discussions. Unlike other propane companies, we fully disclose the value of the propane tank in our tank agreements that are presented and signed by customers. I have attached **. ********** agreement for your review. Many other companies only provide a vague "fair market value" statement in their agreements, leaving the door open to them charging whatever they want for the tank. Our reason for doing this is very simple, Wilson, or any propane company for that matter, absorbs a great deal of upfront costs to install a buried propane tank at a customer's home. We then make our money back over time through the delivery of fuel and in some cases by charging an annual tank rental fee. I would add that due to the agreement Wilson had with the builder of the development where **. ********** resides, we do not charge any resident a tank rental fee. In addition, the builder negotiated the margin over our cost we charge on behalf of the new homeowners and even though our costs have risen steadily over the years, we have honored the original pricing. Now, back to the tank issue; Wilson will not begin to make money on most of the tanks in this development until the 7-10 year mark. The payback is completely dependent on how much propane a customer consumes, which in and of itself is dependent on the weather from one year to the next. Most, of not all of the homes in this development only use propane for whole house heating, so the consumption is highly weather dependent. Since we have not yet reached the breakeven point of our investment, why would we sell the tank for less that what we have invested in it? I would add that what normally drives these requests from customers is either price or account balance related. I have always been willing to customers within reason on these issues and *** ********** is no exception.
  
  In closing, I feel our business practices are solid and based on a good legal foundation. I see nothing wrong in disclosing what something costs ahead of time to the consumer. Please feel free to reach out to me with any questions.
  
  Sincerely,
  
  David O********
  President
  Wilson Oil & Propane

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