The growing deregulation of energy throughout North America has driven a sharp increase in energy brokers, aggregators, and consultants.
This is great news for energy brokers, right?
Well, mostly. We say that because rapid growth in a relatively new industry can leave many brokers getting a raw deal.
Brokers are suddenly faced with options they’ve never had before. They’re hearing about companies they’ve never heard about before. They’re learning about technologies never thought fathomable.
How do you know if you’re taking your energy brokerage down the right path?
We’re going to list a few common energy broker pitfalls so you can keep your energy brokerage on the winning path.
1. Inefficient Pricing and Contracting
One thing that holds many brokers back is inefficient procedures.
The market is always changing, and each supplier does things a different way—keeping up with it all takes time and resources. You need to check pricing every day, oftentimes with multiple suppliers. You need to create contracts. Maintain supplier relationships. It all takes a lot of time.
Luckily, we live in the 21st Century. We have the tools to streamline your energy pricing and contracting.
Time wasted pushing papers, manually updating your costs, or writing contracts is time better spent selling and turning a profit.
2. Uncertain Partnerships
You’ll hear about a lot of companies who want to help you increase sales (full disclosure: we are one!), but how do you know you can trust them?
Whether they’re a broker network like us or whether they are offering an affiliate program, make sure you fully understanding their pricing terms, the company and their procedures.
Some questions you might ask:
- Are they affiliated with a supplier or are they completely independent?
- Does your potential partner sell energy direct to consumers? That is, are they also a competitor?
- How does their pricing work? Do they earn commissions even when you don’t?
- Are their motivations aligned with your company’s interests or are they completely independent from you?
3. You Can’t Go At It Alone
Few brokers can survive on their own.
There’s just too much to do: expand your supplier network, get pricing, write contracts, close deals, negotiate. One or two people can do it, but there won’t be much time left in the day when they’re done.
Even if you’ve streamlined your pricing and contract creation, larger and more complex deals require more time and resources.
That’s why you need a team. Even if you don’t hire a team for your company, you can select a partner who will provide the support you need to keep your operation running efficiently.
At BOX, for example, we empower all of our brokers by setting them up with a business manager who can help brokers effectively communicate with suppliers and close deals faster. And brokers don’t just get a business manager: they also get our supply team backing them up and giving them more time to do what they do best—sell energy.
While there are always countless other pitfalls when running a business, these are few that energy brokers often fall into.
With the ever-changing retail energy market, brokers must evolve with the times: you must streamline your operations, calculate your partnerships, and build a better team to ensure you stay on top of the game.