How we calculate the deposit amount:

At Propane Depot, the deposit amount is aligned with the nature of our installations and the associated costs. The deposit reflects the fact that tanks typically account for a significant portion of the project’s overall cost—often ranging between 80-90%—and are usually installed shortly after the contract is signed.

Additionally, installations are sometimes completed in multiple stages, where the high dollar items are implemented at the beginning. For example, a project might begin with tank or piping installation, with further work, such as connecting devices, taking place later—sometimes extending over several months to a year.

Since installations in our industry generally operate on low profit margins and our software doesn’t currently support staged billing, the initial deposit helps cover the substantial costs we incur during the early phases of the project.