Take a second and think about the energy buying process at your organization. Maybe you already have a routine in place and sign a new supply agreement when renewal time comes around. Maybe you outsource the process, trusting a broker to navigate energy markets and bring back a contract. Or maybe you pay a premium for long-term agreements simply because you don’t have the time or resources to play the market on your own.
Now, think about whether you could answer these two questions:
- Did you get the best price and terms for your energy contract?
- Can you prove it?
Energy is a critical input for almost every business, with a significant impact on operating expenses and, as a result, overall financial performance. How you buy energy is just as important as how you use it. The rate that you agree to pay will determine your energy costs for the length of the contract term. Capitalizing on the inherent opportunities in the energy buying process could have a serious long-term financial impact.
Shouldn’t you do everything you can to ensure you get the best price and contract terms for your organization?
Every business is different, and there is no one-size-fits-all approach to buying energy. Your strategy needs to take many factors into account. Your organization’s operational flexibility should influence the type of contract you pursue. Understanding where your business lands on the risk spectrum is also an important factor when determining how you should approach the energy markets. And how you work with brokers, partners, and suppliers can affect the prices available to you.
Regardless of how you buy energy, you need to ensure you have developed the right process and are working with the right partner for your business. And when it’s all said and done, you should be able to point to the data to explain why you landed on that price.
To understand the most important aspects of the energy buying process, we focused on the four questions you need to ask about your current capabilities in our eBook, 4 Key Questions to Ask Before Your Next Energy Purchase.
Download the eBook to learn the differences in how brokers and other procurement partners obtain your contract and prices, how to navigate energy markets to turn temporary price drops into long-term cost savings, and how to develop a pricing strategy that aligns with your risk profile and financial needs.