Comfort Line - Questions and Answers

This quarter our question and answer segment discusses an exciting new program which gives you a choice of how to purchase your heating oil.

What is Freedom of Choice?

Freedom of Choice is a new program from Hart & Iliff that offers two different price plans to purchase our exclusive Ultrablend Heating Oil. One plan is our Traditional Plan. The other is a new plan we call "The Easy Pay Program." To open a new Hart & Iliff account using either program, download our New Account and Credit Application.

Why two different price plans?

Customers occasionally ask why full service oil companies like Hart & Iliff sometimes charge higher prices for heating oil than companies that do not offer full service. The reason is because of higher operating costs in two main areas:

1. By offering credit terms we end up carrying large receivable balances and incur significant bad debt charge-offs each year. So-called cash companies receive payment at the time of delivery so they do not incur these costs.
2. To maintain a high quality service department that is trained, staffed and equipped to provide you with the excellent service you expect and deserve, is very expensive. The prices we charge for service calls and service contracts are discounted and do not cover our costs. For example, we charge less for service than car dealers even though our traveling service shop makes our costs significantly higher. We make up for service losses by charging a little extra for oil and subsidizing our service department. Since cash oil companies generally do not have service departments and do not offer service contracts, they can charge less for oil.

Our new Easy Pay Plan is designed to eliminate our credit and service losses so that we can charge you a lot less for heating oil. How much less? About 15¢ per gallon.

What are the differences between the two programs?

With our Traditional Plan you get credit terms, a discounted rate for service and you are eligible for one of our outstanding service contracts.

With the Easy Pay Plan we receive payment at time of delivery through one of several available payment methods, the most convenient of which is Electronic Funds Transfer. Easy Pay Plan customers are not eligible for a service contract and pay a higher rate for service, but in return they get a significantly lower price for heating oil.

With either plan you get our exclusive Ultrablend Heating Oil, which burns cleaner than conventional heating oil. See the accompanying chart for a summary of the key provisions of the two programs.

I’m on the Even Payment Plan. Can I choose Easy Pay?

Yes, provided that your monthly payments and all service invoices are paid via Electronic Funds Transfer.

Which program is right for me?

The answer to this question depends, to a large extent, on your attitude about service repairs. Studies show that the average heating system starts and stops about 10,000 times each year. Particularly during the winter, they are called upon to work 24 hours a day, 7 days a week. You never know when your unit could break down, leading to an expensive repair. With the Traditional Plan you get a discounted rate for service work and are eligible for one of our service contracts. A service contract can eliminate unexpected repair bills and lets you rest easy knowing that things are taken care of. It also increases the likelihood that small problems will be taken care of before they become big problems.

If, on the other hand, you are most interested in getting the best price for oil, then the Easy Pay Plan is for you. If you have questions about either program, please call us at 973-383-1421.