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PERC air cover grounded
September 1, 2009 By: Tom Jaenicke LPGasThe U.S. Department of Commerce (DOC) has restricted PERC marketing activities for a minimum of six months while it reviews changes in propane prices compared to changes in other residential energy sources.
Informed sources say this restriction could last as long as two years even if energy prices don’t go on another roller coaster ride. This means no new PERC national and regional consumer education marketing campaigns and advertising during the restriction. State rebate money will also be under restricted use. PERC is hopeful that consumer education programs currently under way as part of the 2009 budget will be able to move forward to conclusion, but nothing is certain at this point.
Every propane company, no matter what size, needs to reflect on how its marketing strategy and tactics need to be adjusted to overcome the new restrictions placed on PERC. Those propane retailers with weak or nonexistent marketing plans who were riding the PERC marketing coattails and waiting for the phone to ring may be in for an unpleasant silence. I call those order takers “propane dealers,” not marketers or retailers.
Here are a few tactics that propane marketers should be considering:
• Review your marketing strategy to see what adjustments may be needed to compensate for the PERC marketing shortfall in 2010.
• Start early on the development of your 2010 marketing plan and related advertising. What will you do differently? Will you need to budget more money to pay for it?
• Look for ways to reinforce your sales program to give more face-to-face time with builders, heating and cooling contractors, other construction professionals and any other business consolidator group in your marketing area.
• Stay current on new propane appliances that save energy and greenhouse gas emissions and find ways to reach your customers with this information. Appliance updates and other information such as the new Propane Planner are available on www.buildwithpropane.com.
• Hit the eject button on marginal marketing programs and advertising. It is time to cast a critical eye on things that are not working well.
• Purge all graphics, photos, etc. of the Energy Guys from your marketing materials. The Propane and Electricity guys will have little relevance to our industry in the future.
• Track current PERC marketing and advertising activities as their national and regional programs wind down at year’s end and consider what you can do to extend some that can work in your 2010 marketing plan.
• Approach your state or regional propane association to see what their plans are in the absence of marketing rebate funding. Be active in guiding those plans.
Remember that a wealth of relevant, creative marketing material remains available on the Propane MaRC, which can become personalized with your company identification. Contact My Marketing Assistant at www.mymarketingassistant.com or call 866-907-1885 for this free service.
There is likely going to be some marketing opportunities that resurface as the DOC stranglehold on conventional PERC marketing and advertising takes effect. Certain types of propane-related training or education activities may be approved activities during the restriction. A good example is the education courses available on the Propane MaRC. Of course, remember that those training classes won’t do propane marketers any good if they have no relationship with builders, plumbers, etc.
Will PERC be able to find a permanent solution in a revamped PERC statute to minimize the chances of future restrictions? It will take separate work but unique cooperation between NPGA and PERC to make this happen. This relationship has had its ups and downs in the past. Let’s hope both organizations work smart in the same best interests of the propane industry that they both serve.
As good as the current marketing campaign and advertising seems now, expect PERC consumer education to look very different coming out of this restricted period. If it doesn’t, we have missed a great opportunity to rocket forward.