Energy Contract Details
Another key element you want to highlight in your quote comparison is the major differences between each supplier’s energy contract terms. It’s important to be able to decipher the energy contract language so that you can explain it to your customers in layman’s terms. Be on the lookout for energy bandwidth clauses, early termination fees, contract renewal terms, and hidden energy pass-through charges.
Electric Load Factor
Some customers that have poor load factor ratings might be wondering why their price quotes are higher than their neighbors. Another element of your price comparison should include the customer’s load factor rating. You can usually get this information from the retail electric supplier(s) providing the quotes. If the customer’s load factor is low, this presents a great opportunity to explain your energy efficiency solutions, help your customer understand the calculation of their business energy consumption, and even talk about developing an energy efficiency strategy for the future.
Utility Price To Compare
It is also important to inform your customers of the local utility price to compare. In most deregulated energy markets, the utility price to compare is the default service rate should a customer elect to remain with the utility company for energy supply. In Texas, customers must choose a retail supplier, or be placed on the supplier of last resort’s pricing.
Utility rates typically fluctuate up and down with the energy market. In some states, these rates change monthly, while in others they change quarterly or semi-annually.
It is important to always know the current price to compare so that you can inform your customer of his or her options. In rare cases, it might make sense for the customer to remain with the utility. In other cases, this is a great way to display value and savings when comparing supplier rates to local utility rates.
Pro Tip: Remember, you are typically offering your customers a 12, 24, or 36 month fixed-rate contract with a supplier. It is unfair to compare the current utility price to your 3 year agreement. A better way to make a true comparison is to look at historical utility price averages.
More Energy Pricing Tips To Keep In Mind
Remember, your customers do not understand energy matrix pricing, custom energy prices, business energy quotes, or supplier contract language. They only see what you are presenting to them. It is important to be an effective communicator, excellent in your negotiation with energy suppliers, and a true resource for your customer. If you do all of these things properly, you are well on your way to becoming a better energy broker and earning six figures by selling electricity.