Forum Discussion
hohenwald48
Nov 16, 2015Explorer
2oldman wrote:JimNH wrote:The exchanges I've seen are around $20 for a 5 gallon tank. Refills are about $13. I really don't see how these exchanges are making much keeping their prices that high.
the exchange programs are so convenient, that it makes owning and getting a tank refilled largely a thing of the past, unless you happen to live near a very convenient place with a refilling station.
Well, with the exchange you're getting about 3.5 gallons of propane. Around here, propane retails for around $1.20/gallon. That means you're getting $4.20 worth of propane for $20. That's how they're making money. $15.80 profit per tank is pretty good profit and they probably get the propane for around half the retail price so they actually make even more.
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