It takes money to save money

[ar_wahan]

A rare rant from this corner.

t's hard to think about winter heating bills when it's nearing 100 degrees here, but I' did so today. As mentioned in an earlier post, I coughed up a lot of money and now have a fuel oil contract guaranteeing the price of $2.59 a gallon *or less* (took out a $99.95 "insurance" policy that says I'll be guaranteed the lower price if it drops below the prepaid price).

But you know what? This system IS NOT FAIR!!!

The way the deal worked is that one could only take advantage of this offer for "loyal customers" if one paid by cash or check only. "Credit cards cannot be accepted for the program." This same company accepts credit cards for all other oil purchases! So basically, the discount is only available to people who are fortunate enough to rhave big chunks of cash on hand. The people who really could benefit from this plan -- the working poor, or those on fixed incomes -- can't take advantage of it!

I've seen this kind of thing elsewhere. I imagine the heating fuel company has good reason to do this (maybe it's charged a lot by the credit card companies?) but it still infuriates me.

Comments

Cash discount's are common

[be4u.livejournal.com]

In all industries, and this basically is a cash discount. And yes, for any business to accept credit cards costs money, both a monthly fee to the business and what's called a "discount", a percentage of the sale. I think mine is around 2-3%.

As I understand it, there isn't much of a profit margin in selling propane/heating oil.

I don't know about your state, but here in California there are programs for the working poor/low income people, to help with energy costs.

Re: Cash discount's are common

[ar-wahan.livejournal.com]

There are some programs, but not enough here.

[leatheryoldbat.livejournal.com]

The working poor always have and always will pay more than other people (with liquid assets). Outrageous late fees, super-large deposits, full price or variable price as opposed to discounts (so deposits are lost), etc. It's their way of keeping the working poor and fixed income people down "where they belong". This is from experience....I'm fully aware that utilities are getting rich on the backs of the poor. Did you notice also that many utility companies (especially those with no competition) spend millions of dollars on advertizing......WTF?
And no.....it's not fair...but nothing will ever be done about it because the vast majority of customers who can afford to get the discounts will never do or say anything against it to the "powers that be".

[lurkitty.livejournal.com]

We pretend we are a classless society, yet our illustrious President makes comment like, "These are my constituents, the haves and have-mores." The more you spend, the more free discounts you get.

We pay more because the energy company or the drug company is paying to send a congressman on a free golf trip to Scotland.