Presenting Retail Energy Price Quotes.
So you have a customer who wants to sign up with a supplier, and now you need to present a price quote. Here are the do’s and don’t of properly presenting supplier prices to your customers.
Apples-to-Apples
First, it’s important to show a true apples-to-apples comparison of all supplier and utility quotes. Some suppliers will quote prices without taxes and other components, while others will quote “all-in” rates. Detailing the specific components of the price quote is always a good idea so your customers truly understand their options. Here is a simple chart outlining how you could present multiple supplier quotes:
| Price Components | Supplier A | Supplier B |
|---|---|---|
| Total Price | $0.083/kWh | $0.079/kWh |
| Energy | Included | Included |
| Capacity | Included | Included |
| Transmission | Included | Included |
| Swing | 100% | 25% |
In the example above, Supplier B appears to have a cheaper rate due to the constrained swing or bandwidth requirement. It is important to list out the major contract terms that might affect the price.
Utility Price to Compare
It is also important to inform your customers of the local utility price to compare. In most deregulated 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.
Need Help?
Need help putting together an energy supply quote for one of your customers? Did you know that Diversegy’s sales partners enjoy an extended level of support from our back office team. We can help you create customer price quotes, put together agreements, and even help you close sales. Interested in being a sales partner?
