NJ Natural Gas Prices to rise between 18% - 22%

[cougar91]

This is residential... but what would commercial customers see as far as % goes? Higher or lower?

"The state's four natural gas utilities would boost rates for residential customers by as much as 22 percent, or an average of $32 a month, under plans filed yesterday with the state Board of Public Utilities. The rates would take effect Oct. 1.'

" David Daly, a vice president at PSE&G, which is seeking a 20 percent increase, or a $28.60 boost in monthly bills, noted the forecast for wholesale gas prices are more than 60 percent higher than for last winter.

"It's a period that's unprecedented and we're doing our best to work through it," Daly said.

In addition to PSE&G and NJ Natural Gas, Elizabethtown Gas asked for a 22 percent increase, and South Jersey Gas for 18 percent. "

[Bizman]

We can hedge nat gas prices by buying UNG on the NY stock exchange. As the price of nat gas goes up, so does your stock.

[RichA]

Had the closing on my second store yesterday. And that was the first thing I saw on the news right after the closing /ubbthreads/images/graemlins/shocked.gif. Not a suprise but I wish I had a couple of days in the place before the news.

[Adamski]

Cougar91,

I think my natural gas company will be requesting a rate increase as well. It's likely that what happens with natural gas in one part of the country will probably progress throughout the country in short order. Thanks for the heads-up.

Larry /ubbthreads/images/graemlins/cool.gif

[SonomaJoe]

[ QUOTE ]
We can hedge nat gas prices by buying UNG on the NY stock exchange. As the price of nat gas goes up, so does your stock.

[/ QUOTE ]
It actually trades on the AMEX, where they also trade options, for more complicated strageties

[Bizman]

Thanks for the correction. I assumed NYSE. You're correct on the AMEX.

[SonomaJoe]

[ QUOTE ]
Thanks for the correction. I assumed NYSE. You're correct on the AMEX.

[/ QUOTE ]
As a former floor trader, these mundane nuances are very important /ubbthreads/images/graemlins/tongue.gif

[cougar91]

Went to a nearby mat today to check out dryer prices, 6 minutes for 25 cents. Can 4 minutes be far behind with this kind of NG price increase?

Anyone doing 6 minutes or less?

[RichA]

cougar91
I went to 5 minutes 2 months ago, and have been thinking of 4 minutes for the past couple of weeks. Problum is one mat 17 of the 30 dryers are older with Greenwald timers and I think 5 min is as low as they go so I would have to convert them to Set-o-matic or something. And if I am doing that should I just convert them all to the dollar coin? Other mat is all electrnic drops so not a problum there. But either way 4 minutes is coming soon.

[Steven04]

Is anyone getting hate messages in your inbox at your store. I've been getting comments like, "your dryers suck", "your stores a rip off", "dryers dont work", etc. I started getting these hate comments after I raised my dryers to 8 mins.

[SonomaJoe]

[ QUOTE ]
Is anyone getting hate messages in your inbox at your store. I've been getting comments like, "your dryers suck", "your stores a rip off", "dryers dont work", etc. I started getting these hate comments after I raised my dryers to 8 mins.

[/ QUOTE ]

What kind of dryers to do have? Are they working properly?
There are always people that will complain & are they much more likely to put a comment in your box

[Adamski]

Steven,

Some of your customers don't understand that you reduced the time per quarter so it will take more quarters to dry their load. They think you turned down the heat or something is wrong with the dryer.

Somehow, you need to get the message out that it takes the same TIME as before to dry but it takes more QUARTERS than before.

By the way, keep the comment box. I love mine ... even with the occasional complaint.

Larry /ubbthreads/images/graemlins/cool.gif

[BMWHD3060]

[ QUOTE ]
Is anyone getting hate messages in your inbox at your store. I've been getting comments like, "your dryers suck", "your stores a rip off", "dryers dont work", etc. I started getting these hate comments after I raised my dryers to 8 mins.

[/ QUOTE ]
People ALWAYS complain the first few weeks , EVERYTIME I have lowered my minutes on my dryers for the last Ten yrs.
Almost NO complaints when I raise Washer prices, Go Figure.

[Howard]

While Larry hates cards /ubbthreads/images/graemlins/smile.gif this is another reason why a card payment system is better. You leave minutes the same and just add a few cents to the price. Most customers don't even notice the price increase that way.

[Adamski]

Howard,

I think the main thing is that owners raise prices when necessary. It really doesn't matter if one is using cards or coins. Both systems are capable of systematic price increases.

I was talking to an operator the other day who hadn't raised washer prices in a number of years. This guy was worried about "not getting any turns" if he raised his prices. He told me that just the other day, a customer came in with a huge basket of laundry, looked around, checked his prices and left without washing. I asked him where that customer might find a lower price. He responded, "No where" ... and he was correct.

Operators who are "addicted to tpd's" will always be behind the pricing curve. It's better to have low, profitable tpd's than to have high, profitless tpd's.

Larry /ubbthreads/images/graemlins/cool.gif

[Howard]

Larry that is not what I am talking about. When you are forced to change the minutes per quarter you end up with the problem discussed. If he was say 10 minutes for a quarter most people know that if they insert lets say 4 quarters their wash is dry. Now when he goes to 8, they are not paying atttention and insert four quarters expecting their wash to be dry. They come back and find wet clothing becuase the dryer only ran for 32 rather than 40 minutes - they are now pissed off.

When you have a card system this does not happen if you were 10 minutes for four card insertions and you change the price per minute it still takes four card insertions to get the 10 minutes. Same customer does his four insertions and comes back to dry clothing. Sure he paid more, but he might not even realize that. The point is you have not introduced a change in what the customer has to do with the card but you have with the coin.

[Adamski]

Howard,

Yes, I fully understand that with cards, the price per insertion can go up while the time bought can remain unchanged. Not so with coins which have a fixed value. They are two distinctly different systems for sure.

You like your's and I like mine. Have a successful year, Howard.

Larry /ubbthreads/images/graemlins/cool.gif

[Steven04]

yes, my dryers are working fine, fire is on, lint constantly cleaned, proper airflow and tested regularly. They are Huebcsh stacks and singles. I started getting these written hate messages after the dryer price change. No one was rude to me in person but some do ask why my prices have gone up.

This month my gross income is the same as last year's, but my gas usage went down (gas bill cost is about same), but the electric bill cost is less. In the end it was worth the price change, less wear on my dryers too.

[epic02]

Steven, going from 12 minutes to 10 minutes I had very few complaints and the people that complained they came back.
My dryer revenue went up my gas usage went down and the wash revenue is about the same. Most people are aware of the prices going up all around them, so they just except it.


Kenny