IS A BIGGER ENERGY BROKER BETTER?
In our opinion – no. If anything, size can be a distinct disadvantage when using a large broker.
We have engaged with a number of larger, multi-site or corporate clients where it was clear that they had previously been “sold” on the advantages of going with a big broker, then after the contract has been signed and the honeymoon period has worn-off, they have been frustrated and sometimes disappointed with the level of service or not getting to speak to the same person twice.
We find it very interesting that large-scale users of energy or businesses with multi-site premises initially feel that they “need” to find a bigger broker. What we would like to highlight is that using a large broker can often be detrimental (financially) to a business rather than beneficial for the following reasons:
Economy - a large-scale brokerage could have:
• 400 staff salaries & pension contributions
• 400 computers • Large costs for digital advertising
• Financial incentives for staff to close deals
• Call centres where you never get to talk to the same person twice.
These are just some of their issues and overheads BEFORE they even make a profit and most brokerage businesses recover this by adding a hidden margin onto their customer’s energy contracts which means that the customer or client is paying for this.
Some smaller energy brokerages have significantly less overheads by comparison but can do many if not all the things a larger brokerage offers. These businesses add less margin onto their discounted prices which makes for grateful clients. Smaller brokerages get exactly the same prices as larger brokers but do not have to inflate prices as much to cover their smaller overhead.
Rather than have somebody “sell” you energy, we find that business owners – particularly in larger or multi-site premises find it far more refreshing to be given transparent, consultative energy advice, comparisons and quotations and be offered some industry insight to help them make a more informed decision on when and from who they buy their energy.
There is no such thing a “cheap” energy or water (as in poor quality or sub-standard) but there IS cheaper energy & water to be had.
The commercial utility brokerage industry is a minefield and very sales orientated.
At Focus, we take away a lot of the confusion, by providing transparent, consultative advice, whilst we source the best utility contracts for our clients based on their individual needs, using our partners and platform.
A quality utility consultant/broker should:-
· Have a genuine interest in understanding your business.
· Work hard to source the best contracts for your business.
· Provide transparent figures for comparison and consideration.
· Almost ALWAYS be able to beat any renewal figure you are given.
· NEVER charge you for providing quotes and comparisons.
· Save time and let you do what you do best – running your business.
If you already have a relationship with a broker, then you should still try to get a second quote to see how competitive (or complacent) your current broker still is – after all, the only difference in prices should be the margin which they charge you for their services. Especially if you are in a sector which is typically a larger user of business energy such as:
Residential Health Care
Hotels & Leisure
Engineering
Manufacturing
Production
If you are uncertain about the market or how much you will pay for your business utilities or would simply like to discuss or compare a renewal price you have received then please contact us for a free consultation at either of these numbers:
Edinburgh 0131 526 3078 or York 01904 202294
Focus Energy Services Ltd, Phoenix House, 9 Pike Hills Mount, York YO23 3UU
Registered in England & Wales 13576976 Data Protection Register ZB205253
E-Mail info@focusenergyservices.co.uk
Tel: York 01904 202294 Edinburgh 0131 526 3078