So, you’re thinking about using an energy broker?
Maybe you are currently using a broker but not really sure if it’s worth it? There are proven benefits to using an energy broker to negotiate your electricity and natural gas supply rates. In this article, we will discuss why having an energy broker on your side is critical to finding the lowest cost energy for your business.
Do You Really Need An Energy Broker For Your Business?
We know what you might be thinking… Do I really need to choose a commercial energy broker? Can’t I just contact energy suppliers myself? While all valid questions, there is a lot you should consider before firing your energy broker or deciding to go at it alone.
First, it’s important to note that energy brokers are experts on the energy markets. While most business owners have the acumen to negotiate with vendors and suppliers, the electricity and natural gas markets can be much more complex. Having a reputable energy broker in your corner who understands the ins and outs of the energy market, can be the difference between between 10 cents or 9 cents for electricity.
Next, energy brokers usually cover their costs by the way they operate. Yes, energy brokers make money by selling you an electricity or natural gas contract. And, many customers think that by going directly to the energy supplier, they can cut out the broker fees. This thought process, however, is flawed. Customers dealing directly with suppliers deal with salaried salespeople, who too, have similar sales fees in the rate. Using an energy broker, can in fact, help you to get even lower prices since brokers have the leverage of pricing with multiple energy suppliers. The salaried salesperson does not have that same leverage.
Using an energy broker when negotiating with suppliers can have many benefits for you and your organization. In the section below, we will discuss the top benefits to using an energy broker and why you should consider hiring one if you don’t already have a relationship in place.
The Benefits Of Having An Energy Broker
Energy brokers bring a lot of value to their commercial and industrial customers. From saving money on energy costs to managing contract renewals, an efficient energy broker can be a very valuable asset for an organization. Here are the top three reasons why you should use an energy broker when negotiating the purchase of energy for your business:
Having A Go-To Resource For All Things Energy
If you run a business or large organization, then you know energy expenses can be very costly. Having an energy expert in your corner to ask questions and get advice is critical to controlling costs. Although energy brokers are mainly involved in the sale of energy, the best brokers have extensive knowledge of other areas of the industry and can lend invaluable insight.
Shopping for electricity and natural gas is very different from shopping for other supplies for your business. Unlike toilet paper, energy prices change hourly with supply and demand. On very volatile days in the market, energy quotes can increase by 5 or 10% from the morning to the afternoon. So, when you are obtaining price quotes from suppliers, it is imperative that all suppliers submit quotes at the same time so you can do a true comparative analysis. The process of contacting multiple suppliers and organizing quotes can be a nightmare if you don’t know what you’re doing. This is the key function of an energy broker and having the right one in your corner will make your life easier.
There are many things to negotiate when signing up for an electricity supply contract: the price, the term, and specific energy contract language to name a few. As a standalone account, it can be hard to get an energy supplier to budge on any of these items. An energy broker with strong supplier relationships might have the leverage you need to get contract language changed or to ask for a special provision.
Looking For A Reputable Energy Broker?
In conclusion, there are manage benefits to having the right energy brokerage firm in your corner. If you are a commercial customer looking to negotiate a better energy rate, or an energy broker looking for a partner to help you take your business to the next level, you’ve come to the right place! As a publicly-traded company, we have the prowess with energy suppliers needed to negotiate the best energy prices in the market. Contact us today to learn more about what it means to be a Diversegy partner.