Why You Should Use an Energy Broker

Why should you use an energy broker?

Well, ask yourself this. How much money do you spend on energy each month? Could you stand to save money in this area? More than likely the answer is, “yes”. If it is, do you have the industry knowledge to get yourself a better deal? Do you know all the players involved? Do you have the time to research all of your options or is your time better spent doing other things? Wouldn’t it be better if you could offload that responsibility onto someone who already knows where the best deals can be found?

That’s what an energy broker does for you. Brokers leverage their extensive knowledge and connections within the energy sector to find you the best deal on your service.

Brokers are Industry Insiders

Energy brokers know their industries inside and out. They’re familiar with all the key players. They’re intimately aware of the suppliers, their offers and cost structures, and who the best people to talk with about getting competitive pricing. They closely monitor industry trends and keep tabs on price and supply fluctuations. When you hire a broker you’re hiring years worth of networking and research. A broker assures that you make smart decisions without having to acquire all that knowledge yourself.

Brokers Drive Competition

Because of the extensive knowledge brokers bring to their negotiations, energy suppliers know they can’t be easily fooled like individual buyers might. And brokers, by their nature, bring large pools of individuals and companies into the marketplace. This means suppliers aren’t bidding on single lines of business, but large blocks of potential customers. These two factors forces suppliers to compete honestly and aggressively for the contracts the brokers represent. This drives healthy competition throughout the entire energy sector.

Brokers Get Preferential Pricing

Increased competition means lower prices for everyone. But brokers get the best rates possible because brokers are much more difficult for energy suppliers to take advantage of. When an individual customer purchases, service with an energy supplier the supplier can be reasonably certain that their contract will simply renew year after year. The supplier knows that individuals don’t have the knowledge to know they can do better.

Brokers do know better, and they monitor their clients’ contracts closely. When a given contract is coming close to renewal the broker will begin the search for a better deal. The supplier knows the renewal isn’t a given and so it must compete more aggressively to assure that the broker won’t take his or her customers elsewhere.

Timing is important as well. Energy prices fluctuate constantly. A seasoned broker is aware of price dips and can anticipate the best time to sign a service contract, which can save companies quite a bit of money. This all translates into better prices for customers going through an energy broker.

Brokers Are Independent

Often you’ll get cold calls from energy suppliers attempting to win your business. These salespeople may pay lip service to the idea that they’re trying to save you money but they aren’t working for you. They’re trying to bring in as much business, and money, as they can for the supplier paying their salary. This means they hold all the power.

Brokers, on the other hand, work for you. They’re deeply entrenched in the energy market, but they don’t represent entrenched interests. When they say they’re trying to get you the best price, they actually are. They’re paid by you, not by the energy companies. This means you can trust the advice they give you and you know they’re looking out for your best interests.

Brokers Help You Save Energy

Not only do brokers bring their extensive knowledge to bear on finding you the best rates, they can also help you use the energy you purchase more efficiently. This ultimately saves you even more money. No matter the size of your organization an experienced broker can perform an energy audit to find wasteful use and help plug those holes.

Brokers Can Help Anticipate Your Needs

Brokers can examine your current energy usage and help project how that usage could change and grow over time. In some cases it might save money to sign long term contracts, but if your broker is certain you’ll use more energy in the future, you may be better off signing a shorter contract which might cost slightly more now but frees you to renegotiate sooner when your usage increases. They can also suggest alternative energy sources when making a switch or adding capacity might help your company grow. Brokers make certain you’re getting exactly what you need to satisfy your energy needs now while also making certain you’re properly positioned to get the best deal possible in the future, too.

Brokers Save Suppliers Money, Which Saves You Even More

It seems counterintuitive that brokers could save suppliers money when the brokers are actively fighting to make sure suppliers keep their prices low, but in fact brokers fill an important role in a supplier’s business model. Brokers bring large blocks of customers directly to energy suppliers. This means suppliers don’t need to advertise as much. They can maintain a smaller salesforce. They have fewer overall players in the market, they need to deal with. All of this saves them money, and allows them to pass those savings back to the brokers which in turn means lower rates for the savvy customers wise enough to work with them.

Brokers Are the Smart Choice

Would you buy an expensive item without doing your research? No. Would you be certain to learn as much as you can before making your decision? Of course you would. But if you didn’t have the time or the connections to adequately do your due diligence, or if the market was too complex for you to penetrate it what should you do? In the case of energy purchases what you should do is let someone that’s already done the work to understand your options get you the best deal possible. In the end good brokers pay for themselves. The money you pay them in commission will be less than the money you save on your energy bills.