6 Ways Your Business Is Wasting Money

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Your energy bill is one of your biggest business expenses. You need power to stay operational, but that doesn't mean you have to accept the high cost. If you're failing to put these money-saving measures into action, your business could be wasting money.

1. You Aren't Checking Your Provider's Rating

When choosing an energy provider, don't just pick cheapest one and assume they're going to take care of you. Instead, take the time to read reviews, check ratings and do your research just like you would for any other supplier for your business.

Look at their quality, rating and customer service reviews. Are they known for addressing questions quickly, working with customers when necessary and providing the services that companies need? A low quality provider could ultimately cost you more in unscrupulous hidden fees and constant battles with customer service.

2. You Didn't Do Your Rate Research

If there's more than one energy provider in your area, do your research. As a business, you'll go through significantly more energy than a residential property, and you don't want to pay more than those services are worth. Pay attention to the rates in your area. If possible, look at historic rates to learn which companies are increasing their prices fast and which ones have remained relatively stable.

3. You Don't Understand Fixed and Variable Rates

When you choose a new energy provider, you'll sign either a fixed-rate contract or a variable-rate contract.

With a variable-rate plan, the price you're charged changes based on the current market rate. This allows you to take advantage of market dips. But, they also come with the most risk because of potential price increases or fluctuations. A fixed-rate plan is set in stone: you'll know exactly what you'll pay for the energy you use. While your exact payment may change based on how much energy your business uses during that time period, your rate is locked in.

For small and medium-sized businesses, Direct Energy Business offers fixed-rate plans, which can offer stability and predictability for your business. That means that you can better predict your energy costs each month and budget appropriately. And, if the rates drop during your contract period, you can take advantage of the new rate with our ChooseAgain protection.

4. You've Been With The Same Provider Forever

When you first opened your business, there may have only been one provider in town, or perhaps you just chose the one you thought was best at the time. You made your choice and never looked back.

While sticking with the same provider may provide a sense of constancy to your business, it could also be losing you money. Consider this:

  • If you never do market research, you have no way of knowing whether or not your energy provider is offering you the best possible rate. As other companies come into town, you may discover that another company is able to offer you a better deal.
  • Many providers raise their rates a little bit each year. Over time, you've come to accept this as normal and don't even look twice. A new provider could start you at a lower price tier.
  • Letting your current provider know that you're looking at other offers may give them incentive to reduce your energy rates, offering you better savings.

 

It's critical that you evaluate your local providers regularly, and not just when your contract is up for renewal. This will ensure that you aren't paying more than you have to for your energy bills - and that means more funds available for much-needed projects. 


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5. You Struggle To Commit

You've found great energy rates out there, but instead of jumping on those great rates, you're on the fence. When great energy rates show up, lock in that rate! When you let great rates pass you by, you're signing your business up for long-term losses on your energy bills. 

6. You Never Had an Energy Audit

Your power bill might be high, but you've never even considered taking steps that might help you drop it. If you've never had an energy audit, you can bring in a specialist or conduct your own audit for free. You may be surprised by some of the ways you could save money.

Check out our energy buying mistakes infographic to put it all in perspective:

 

You never want to spend more on your bills than is absolutely necessary, and your energy bill is no exception. By taking the time to do your research and discover the provider that will be the best fit for you over time, you'll discover that you can experience substantial energy savings, keeping your business running at the same level of productivity while paying considerably less for it.

 

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