While waiting for my wife outside a store yesterday, I passed the time by reading the information on the "Blue Rhino" propane tank exchange setup. No surprises until I got to the bottom and discovered that the "Full" tanks contain only 15lb of propane. I thought that the "regular" small propane tanks held 20lb.
How many people are thinking that they are getting 20lb (as they would if they took their own tanks to a refilling station) for a good price but getting only 15lb?
There's a class-action lawsuit against them over this issue. AmeriGas recently settled a class-action lawsuit over a similar claim:
A federal judge approved a $10 million settlement against a company accused of putting too little propane in its containers.
The settlement in the multidistrict litigation ended multiple cases filed against AmeriGas Propane Inc., AmeriGas Propane LP and AmeriGas Partners LP.
The plaintiffs alleged that the cylinders -- the type used for grills
-- contained 15 pounds instead of the 17 pounds of the gas AmeriGas previously provided. The settlement covers consumers who bought or exchanged the cylinders between June 15, 2005, and Nov. 30, 2009.
Those with proofs of purchase can recover $5 for each propane tank they purchased or exchanged during the class period, up to $75. Those without proofs of purchase can recover $5.
The settlement also subjects AmeriGas to a three-year injunction, during which the company must take measures to prominently inform consumers of the actual net weight of propane in its tanks and to refrain from marketing those tanks as "full."
... The objectors had urged the judge to consider that, under federal and state laws and regulations, the cylinders should hold 20 pounds of propane, not the 17 pounds agreed to in the settlement. The objectors' argument would have vastly expanded the amount owed by AmeriGas.
Both AmeriGas and the other plaintiffs disputed the argument, saying the objectors had conflated the maximum amount a cylinder could hold with the amount with which it should safely be filled. Both parties also said no law requires cylinders to be filled with 20 pounds of propane.
Fenner overruled the objectors' arguments in his Oct. 4 order.
...The settlement did not affect a related series of lawsuit against Ferrellgas, the supplier of Blue Rhino propane. Bryan Cave is defending Ferrellgas.
After not having to read the sign for the past 50 years, it is a sleazy way of raising the price. Yes, it may be legal, it may be show on the label, but I don't read the sticker on a dozen eggs either. It has always been that way.
Right. Just like 16oz bags of potato chips, two pound cans of coffee and 1/2 gallon tubs of ice cream.
That said, I sort of understand where the manufacturers are coming from. It's not always about hiding a unit cost increase - sometimes it's the price point. They have evidence enough that enough people don't look at unit pricing - they have a set amount they will pay for a product and either not buy over that amount or will buy a competitive product that sells for less, even if it contains less.
You expected something else? It has always been buyer beware. Whole stores are designed to take advantage of impulse buyers, and hurried shoppers. Those who take their time and actually read things fare a little better. Like those smaller "pound" coffee cans.......................
I have had most excellent service from UHaul in Las Vegas, and their prices were very good. I get mine locally here at a propane supplier in a rural Utah town, and it is the same. Plus, in this setting, everyone gets to stand there and watch their tanks being filled.
Ice cream has survived as a half gallon for decades, at least 6 that I'm aware of. It is more costly to pack the smaller cartons. A hundred gallon batch of ice cream used to take 200 containers. Now it takes 266 containers for that batch. Given that the physical size and material is changed little, the smaller containers won't be that much cheaper. As a consumer, I'm being made to pay for that waste of resources.
Only certain kinds of goods, AFAICS. But they often try to make it just a little herder to compare because some items show the price per pound while others show the price per ounce.
You mean you have a problem being able to quickly comparing same product different size items that are intentionally priced at say "price each" and the other is priced at say "per ounce"?
A so-called "20lb" propane tank can only "safely" hold 17 or 18lbs of liquid propane. Calling it a "20lb" tank was sleazy marketing from the get-go. Properly filled tanks have NEVER had 20lbs of propane in them.
There's a lot to be said for downsizing the amount of product you get, rather than raising the price... As a general rule, your average mook on the street is a moron.
History has shown that keeping the package size the same and raising the price causes people to look for cheaper alternatives.
Agreed. Although I do have exchange facilities near me, I take mine to my local propane supplier, and get a MUCH better price. Why anyone would pay the rates at the exchange places is beyond me, especially when there are propane dealers very close by.
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