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Pietro AA

Propane Distributors Seek to Boost Demand With Lawn Mowers - WSJ.com - 0 views

    • Pietro AA
       
      The propane economy had problems after the natural gas industry introduced a cheap and comfortable energy source. Clearly propane and natural gas are substitute goods. This article discusses how the propane industry seeks profit by helping a complimentary product: propane lawn mowers. If one buys a propane land mower he obviously then has to buy propane.
    • Pietro AA
       
      Here is another way the propane industry seeks a greater demand: exporting. More people will certainly want the propane.
  • Propane Distributors Seek to Boost Demand With Lawn Mowers
  • ...5 more annotations...
  • The propane industry has set its sights on that symbol of American middle-class achievement: the lawn mower
  • Blame it in part on the natural-gas drilling boom, which has left distributors scrambling to find new ways to increase demand for propane
  • By promoting the benefits of propane lawn mowers—which have lower emissions, are cheaper to run and last longer—the group is betting it can grow to a 3% share of all commercial mowers sold in the U.S. by 2016 from 1% now. That would goose propane consumption by the machines to 23.8 million gallons by 2016 from about 7.9 million gallons this year.
  • How much the push into lawn mowers will help propane retailers remains to be seen.
  • In addition, the U.S. has become a net exporter of propane in recent years—supplying countries such as Mexico, Brazil, Ecuador and Chile with propane for residential heating and cooking
  •  
    Propane producers try to gain more by selling more. But they need a greater demand. Since natural gas and propane are substitute goods, and the natural gas industy has recently boomed, propane lost a lot of demand. So "propane distributors seek to boost demand with land mowers" and by exporting these two complementary products to other countries.
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