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FAQs



ANSWERS TO QUESTIONS ABOUT THE BUYER'S CLUB

Q. What is the reason for the BUYER'S CLUB?
A. The ultimate goal is to allow you the opportunity to protect yourself against upward price spikes that may occur due to unusually cold weather or world tensions.

Q. How much can I save?
A. It depends on your usage and how high oil prices get this coming heating season.

Q. What is a guaranteed price?
A. The price that you choose, based on your plan, is what we "lock in" for you, all heating season long. It is a fixed price, that is, every gallon you purchase under the plan will be at the same low price no matter when it is delivered during the Term of the Agreement.

Q. How can you offer a guaranteed price that is lower than your retail price?
A. You tell us how much oil you will need. We purchase the oil when price and demand are lowest. We store it for you and deliver it when you need it. Essentially, you are buying all of your oil at a lower price but getting it delivered when prices are generally more volatile and higher.

Q. Why can't we just deliver all of your oil at the Buyer's Club price?
A. We can't for two reasons. First, we don't know exactly how much oil we would need to deliver. The Buyer's Club will give us an exact number of members buying an exact number of gallons that will allow us to make an accurate purchase on your behalf. Second, the cost involved in buying all of our supply with an unknown market would be financially prohibitive. We are only purchasing the quantity that our members order. Most members are only putting down a 30% deposit, while we finance the balance of the cost when we make the purchase.

Q. How do I know how much oil I will need?
A. Many customers know how much they'll need based on past experience while some will make a decision based on budgetary considerations. If you wish, you can call us and we'll help you estimate your needs. In any case, the weather will be an important factor in determining how much oil you'll use. If you don't buy enough, at the end of the heating season you'll receive a delivery that is partly at the plan price and partly at retail price. Subsequent deliveries will be charged at the current retail price at the time of each delivery until you enroll in the next program.

Q. Do I have to be on automatic delivery?
A. Yes, in order to maintain an attractive guaranteed price, we cannot accommodate customers who require a call from us before each delivery nor those customers who prefer to place an order for each delivery. Members of the Buyer's Club must be on automatic delivery so that ALL DELIVERIES ARE MADE AUTOMATICALLY according to the Degree-Day System.

Q. What if I use up all of my oil under the Buyer's Club Plan and I need more?
A. We can only guarantee the price for the quantity that you specify on the agreement. If you use this up, any additional gallons delivered will be billed at the retail price in effect at that time.

Q. What if I have oil left in my plan?
A. If you were unable to use all of the gallons purchased for the current heating season, at our discretion, we will either continue to deliver the yet undelivered gallons even though the Term of the Agreement has expired, or we will apply your credit balance, if you have one on your account, towards the next Buyer's Club program. There will be no refunds.

Q. Why is Plan B priced lower than Plan A?
A. We are willing to give a discount because the customers who choose Plan B are paying for all of their gallonage up front, and we don't have the costs involved in financing them over the length of the plan or in tracking monthly payments.

Q. When will you start making deliveries under the Buyer's Club Plan?
A. The approved members will begin receiving oil under the Club 2009 plan after the start of the Term of the Agreement. All deliveries will be made automatically. You don't need to worry about calling in your order or running out of oil. You will remain on automatic delivery even after the plan ends unless you notify us in writing. We will acknowledge your notification by return mail.

Q. What if I sell my home and have gallons remaining in the plan?
A. The new owner may assume your obligations and receive your benefits under the Agreement; however, the new owner must first be approved as a customer of Mitchell Supreme.

Q. What if I stop deliveries, close my account or change to an alternate fuel source before I use the entire Quantity?
A. There should be no concern if we delivered to you all the gallons we bought on your behalf. We recommend that if you have gallons remaining you should plan to receive delivery of all of the gallons before you stop deliveries or close your account. There are no refunds if you close your account or stop deliveries before the gallons are used.

Q. What happens if I miss a payment or I pay late?
A. Just as we must provide the oil at the guaranteed price per gallon, you must pay the specified amounts on a timely basis. If you fail to make payments or the deliveries are suspended by the Seller or the Buyer for any reason, the guaranteed price will not be honored on prior deliveries as well as any future ones.


To contact us directly about MITCHELL-SUPREME OIL,
Call 1-800-832-7090
or e-mail us info@mitchellsupreme.com

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