As the deregulated electricity sector grows, so does the necessity for more competitive electricity rates. Early on in the game, you could get by with so-so rates as long as they beat the local utilities.
Nowadays, there are more electricity brokers than ever before. There are more suppliers, too. That means rates will keep decreasing to account for the competition.
So, the question remains: how do you make sure your rates are competitive while still profitable for you?
It All Starts with Suppliers
There are countless electricity suppliers out there. Some are better known than others.
As an energy broker, you need to be careful of which suppliers you sell. Some suppliers prey on new and inexperienced brokers: they offer upfront payment plans or they’ll take you on without any experience, but their rates are so high you can’t sell them.
Every company needs to maintain a profit, and sadly some small suppliers don’t have the volume to offer truly competitive pricing.
That’s not to say all small suppliers are bad – some offer extraordinary electricity rates for their markets – but the big-name suppliers almost always have extremely competitive rates. And you need access to those rates to stay competitive in today’s market.
Careful Who You Partner With
Having good suppliers is important, but be careful how you access them.
Here’s a growing trend we see in the deregulated electricity space: established brokers working as a middle-man between big suppliers and unestablished brokers.
Basically, the established broker has access to a big electricity supplier like Direct Energy or Engie. That established broker then sells those rates to an unestablished broker, who in turn sells to the end-consumer.
So what’s the problem? Some of these established brokers hike the rates up so high that the unestablished broker can only offer uncompetitive rates.
Again, this doesn’t apply to all brokers but you should use discretion when venturing into a partnership like this. You’re better off with a big-name broker or broker network (yes, like BOX) that has higher sales volume and a solid reputation for helping brokers close deals and make money.
Why Can’t I Just Use the Big National Suppliers?
You can. But building a relationship with them is tougher now than ever.
Most of the national suppliers like Direct Energy, Constellation and Engie only work with brokers who have a solid reputation and a big book of clients. Other brokers are on their own.
When these suppliers take on an electricity broker, they’re investing in the broker. They must onboard them, train them and maintain them. It all costs them time and resources. Naturally, they want to see a return on investment, so they’ll only take brokers with the highest chances of success.
Knowing this, you can see why so many unestablished brokers turn towards the established ones for competitive electricity rates.
What’s the Best Way to Access These Competitive Electricity Rates?
The best way to get more competitive electricity rates from the most lucrative suppliers is to join an energy broker network like Broker Online Exchange.
Through BOX, you’ll gain access to rates from the nation’s most competitive electricity suppliers. And since we’re the largest broker network in North America, you can rest assured we’re offering you the best deal around.
And you don’t just get access to more suppliers with BOX. You also gain access to:
- Upfront or residual payment plans from all suppliers
- Our licenses in all deregulated markets
- World-class support team
- Access nationwide matrix pricing in seconds with our proprietary software
- Contract creation software to streamline the sales process
It’s no surprise why more brokers chose BOX to grow their electricity sales. Join today.