Learn about actual and potential costs
How much should I pay for Butane?
What is the average price of Butane?
This procurement report includes pricing information to help you purchase Butane. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Butane been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Butane yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Butane?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Butane with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
In 2020, the top four butane vendors account for between 30.0% and 50.0% of market revenue, indicating medium market share concentration. Roughly 2,042 suppliers provide butane to the commercial market. Although barriers to entry are high for manufacturers due to the high capital investment required, they are lower for wholesalers... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Complementary Products & Services
What types of incentives are available if I bundle my purchase with a complementary product?
What are your current production volumes of these products? What are your projected product volumes in the next three years?
What types of complementary services can you provide to help me effectively manage my butane consumption, transportation and storage?
What are my shipping options and how do they change with the incorporation of additional products?
What procedures have you implemented to establish adequate knowledge of the latest technological developments or market changes for downstream buyers?
What former experience do you have in producing and delivering butane for business applications similar to mine?
In what ways have you stayed up to date with the industry's latest technical developments? Have you taken any steps toward process automation?
How often have you engaged with companies from my industry?
Supplier Financial Stability
Is your firm insured or bonded?
Are you now or have you ever been involved in a merger, acquisition or other divestment? How does this impact your business?
Can you describe any issues with your balance sheet?
What is the credit score of your business?
How does an increase in raw material prices (crude oil or natural gas) affect your business and me as a buyer?
How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?
How would you deal with cost changes for manufacturing machinery?
Prices for crude oil have been volatile in the past. Do you have a plan for mitigating supply chain risk due to input price fluctuations?
How do you ensure the quality of your primary inputs?
Can you tell me about a time when there was a disruption in the supply chain? What did you do to fix it?
Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased or reduced demand?
How are customer service inquiries handled?
What is your response time in the event of a product defect?
Do you employ a staff of quality control managers?
Do you have any record of a time when you responded promptly to a client's product defect issue?
Amid widespread health concerns, what contingency plans are in place to mitigate the risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Do you have any long-term clients I can speak to as professional references? Can you describe their relationship with your company?
What is the average length of a customer relationship for your company?
How do I get in touch if there is an issue with my contract?
How do clients typically review your performance?
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Key elements for every RFP
What should my RFP include?
Buyers should state the total value of the contract.
Buyers should state their expectations for per-gallon pricing.
Buyers should evaluate suppliers on their ability to meet the volume requirements.
Buyers should evaluate suppliers on their ability to price their products competitively compared to other bidders.
Buyers are advised to reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Buyers should state when the RFP was issued.
Buyers should state when proposals are due.
Buyers should include a range of dates when suppliers can submit questions.
Buyers should state when the contract award will be announced.
Evaluate major factors to mitigate risk
How risky is the supply chain?
Butane suppliers face a moderate level of supply chain risk. The most critical upstream suppliers to butane manufacturers are oil and gas extractors. Crude oil prices have been extremely volatile in the three years to 2020, primarily due to fluctuating demand from developing nations and supply issues stemming from political... Subscribe to learn more.