At this time of year there’s talk of pre-buy, pre-pay, downside insurance, budgeting. But what, if any of it, makes sense for you? With fuel prices going up and down it’s not always easy to know whether it’s smart to buy upfront but budgeting is nearly always a good idea, for most of us.
If you pay for your bioheat when it’s delivered, you’ll be paying 75% of your annual fuel bill in just four months—December through March. That’s because those are the months that you use your heating system and so that’s when we deliver your fuel.
Let’s say your annual heating costs are $1,500. You’d be paying $1,125 in just four months, and only $375 in the other eight months! That seems a little crazy when most of us have incomes and expenses that really don’t change much through the calendar year. Wouldn’t it make more sense to spread your fuel payments through the year? Well, you can.
At Simply Green we offer three different budget programs. Two of them, the Fixed Price and the Flex Price, require you to sign up for a pre-determined amount of fuel at a pre-determined price (the Flex program also requires downside insurance to cover you should prices go down.) The price is set according to the price on the day you sign up.
Both these programs allow for spreading your payments over several months, but the third program, the Market Budget, allows you to pay month by month over 12 months. We estimate how much fuel you’ll use over the year and what that will cost. We divide the number by 12 and that will be your monthly payment. You pay market price on the day of deliver and, because that price can fluctuate, we check on your account twice a year to make sure you’re not over- or under-paying.
With a Market Budget program, you won’t pay any less than if you pay for your fuel when it’s delivered, but you’ll spread the costs over the full year and reduce the financial surprises over the winter.
If you want to know more about the Market Budget, or the Fixed Price and Flex Price programs, call Deb today at 603.430.9919.