Hi Gerald,
I as well have COP (Customer owned product) cylinders.
The choice was due to to the demurge or cylinder rental fees and not going through the gas useage. I should mention the cost of cylinder retesting and valve replacement, pick up delivery expenses, as well delays in refilling should be factored expenses in making the choice. My suppliers say they are required to retest and revalve every 5 years. I have 8 cylinders.
Not activley running a business, I have found this to be economical for me, but at times an inconvienence for the reasons mentioned. It also explains why I have 8 cylinders.
From a business perspective, it doesn't make much sense however does it? Yes, cylinder purchase and ownership means a depreciating asset, but you still have the cost originally attached to operating and that is gas cost, delivery and change over labour. The best way to save is buy in bulk or the largest cylinder volume possible, to get a cheaper price on the gas, reducing delivery and change over labor.
You still have to survive to year end to claim a tax credit however. Talk to an accountant but my guess is you will have more money at the end of the year by forgoing the purchase of your own cylinders.
It does seem like a way to keep the operationing expences lower if gas usage cost are low to begin with or will remain low. With just a brief understanding of your operation, this could be a good option worth concidering and shouldn't be ruled out. You know best your market, business model and expectations for earnings.
I might mention, factoring in cylinder storage, floor space and expenses mentioned, the captial investment maybe should be bulk cylinders and a manifold system to the stations?
Well good luck there.