FAQs

Supply agreements were designed to soley protect the supplier and to secure a customer’s commitment for a period (usually 42 months). This allows a supplier to recover a portion of his initial costs for bulk tanks or large number of cylinders.  However, over the years it has been deliberately modified to capture a customer  and block the customer's ability to change suppliers  or negotiate competitive pricing. During this time of bondage, the supplier will escalate the selling price, introduce new charges not previously discussed, potential suppliers cannot provide competitive pricing the way the agreements are worded or the current supplier could meet that competitive price and further extend agreements for even longer terms (stacking the terms). See “Price Revision” of your contract. Also,  see “Warranties, Risks and Liabilities” of your contract.
 
Companies like O2 for U, Inc understand the validity and function of these agreement, and assist customer’s in understanding the pitfalls they may be faced with, or the benefits.  When customer’s own their assets (customer owned cylinders) these agreements  should not be signed unless the supplier is willing to hold the pricing firm through the term or length of the agreement.  No agreement signed should ever include an “evergreen clause” stating that unless the customer remembers to send a formal letter of cancellation giving notice of more than 12 months advanced notice from the anniversary date or date of signing then the agreement automatically renews for the original term. For “evergreen clause” see “Term” of your contract.

Does O2 for U, Inc require a contract?

Not for customer's with "customer owned" tanks.  However, should a substantial investment of cylinders be required, O2 for U, Inc would require a firm commitment (supply agreement required by bank loan officer) with provisions to protect the pricing for the customer during the term.  Remember, the supply agreements should be a mutual pledge between customer and supplier, should be "dead ended" without automatic renewal clauses, without introduction of new fees, not previously discussed, and with provisions for service in case of calamity.

What is the fundamental advantage of having service by O2 for U, Inc?

Complete access 24/7 to the president and other production employees guarantees the response that your company needs and deserves, because the medical industry is not 8-5 but 24 hour round the clock industry.

What is the advantage of having a local supplier as your medical source?

Logistically it will be easier to shuttle tanks to and from your facility when high volume need occurs. Local supplier is not encumbered by once a week or twice a week delivery when conveniently loaded with other deliveries (both medical and industrial).

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