The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
Issue link: https://read.dmtmag.com/i/591447
28 NOVEMBER 2015 | FUEL OIL NEWS | www.fueloilnews.com BUSINESS OPERATIONS T he saying "oil runs in his blood" certainly applies to John "Jack" Klinger, owner of Pennywise Fuel, Co., Inc. Jack is the son of Fuel Oil News founder Curtis Klinger, and while he didn't start in the industry his father covered, he managed to end up there before too long. After he graduated from Gettysburg College in 1973, Klinger sold real estate in New York. "Boy I can go and look back on the prices [in the 1970s] and I could've bought a few buildings—62nd and 3rd, you know," he said. "They are probably worth $10 million each today. I enjoyed it, I enjoyed New York. After that I went into gas stations where I became the vice president of a company that grew to be number one in the state. Then I left and started my own businesses with gas stations and in 1979 we started Pennywise Fuel. The company started in fuel oil basically as a COD com- pany that contracted out its services. This only lasted a short time as the company rapidly built a customer base and began to expand into service operations. "We realized that we really wanted to provide more ser- vice to the customer which makes the customer more loyal," Klinger said. "So in the 1980s we went automatic and we had our own little software program that we had developed." In 2000 the company purchased eight industrial acres in Monroe County, Pa., and built a bulk plant. The oil went in first in 2000 and two years later 60,000 gallons of propane storage was added. "Diversification is definitely important, and we started the process 13 years ago with a move into propane," Klinger said. "I'm glad I did it, but they are not necessarily the same business. Propane is initially more labor-intensive—getting the tanks out and getting the customers—but that eases up once you get going." Capital is also an issue with moving into propane. Klinger noted that he raised oil prices slightly to help subsidize the development of the propane market, which worked out fairly well for his operation. "Companies that offer full-service with a good customer base really can move into propane and start marketing from their own base," Klinger said. "That's what we did and it worked out very successfully for us. You're not going to go out there and set the world on fire, but you can get a nice, secure little market." The company currently has four propane trucks, of which at least three are operational all winter. The company oper- ates five fuel oil trucks, including some that supply off-road customers with low sulfur diesel. Klinger noted that the company offers three main distil- late products: fuel oil, kerosene and sulfur off-road diesel. "The off-road is a nice summer business, especially in the rural areas in which we operate," Klinger said. "We are one of Pennywise Fuel Son of FON founder owns and operates his own oil business "Frankly I'm a bit amazed that many of these propane companies don't consider offer- ing fuel oil. I think both products work well together, even though they are very different." – Jack Klinger John Klinger and son Grant Klinger