The Importance of Competition When Looking for Lower Energy Rates

“Thank you, but I’m already working with someone”… Ah, the famous last words said by the guy who paid too much for something!

Today, I don’t think 5 minutes pass that we don’t get pitched something.

I think it’s safe to say that as a consumer, you are subject to more advertising and sales than you or we ever have before.

In a way it’s annoying, trust me I’m a consumer too, but in a way, there’s a positive side to it. And when it comes to energy choice, or finding lower energy rates, there is a definite plus-side — hear me out on this,

Be it for “lower energy rates” or anything else, getting bombarded with offers, online ads, cold calls, robocalls, e-mails, and whatever other advertising people come up with, well, it’s enough to drive anybody crazy.

However… one of the biggest advantages you have as a consumer is YOUR CHOICE!

What’s the worst that can happen if you listen to someone’s pitch for 5 minutes? After all, aren’t you the one who decides whether you buy something or not? Or are you so insecure of yourself that you’re scared you might get coaxed into something you never wanted in the first place?

At some point you will need to decide, is not taking a few minutes to listen to someone’s pitch or to hear what they have to offer worth missing out on one of the biggest benefits of being a consumer — being able to choose.

I mean, can you imagine not having any choice? Having to buy from only one place, one company, one store? Well, at that point you’d be paying no matter what they charge for it.

The secret here lies in competition!

Now, while this article talks about energy choice, the concepts here really apply to any industry.

As an Energy Consultant, I can’t tell you how many times a business owner has told me “No thanks, I’m covered”, “I’m already working with an energy broker”, “I’ve already got the lowest rates”.

But, low-and-behold, in almost every case when I looked at their energy bills, I was able to find them LOWER ENERGY RATES and save them money!

Why? How?

Because of competition.

In this article, I am going to discuss how COMPETITION HELPS YOU! And, although I’m talking about finding lower energy rates, these same concepts apply to any industry, even your own.

The Benefits of Competition

I’ll never forget the Church we helped in New York who was convinced they were paying the lowest energy rates because they’d been working with their energy broker for years!

Right… when we did an energy analysis with her accounts, we found they were paying more than double what they should be! And by finding them lower rates, we saved them almost $25,000 a year!

That church benefited from the competition!

Competition generally leads to

• Lower prices
• More choice
• Innovation and better quality products FOR YOU!
• Improved customer service

Competition benefits YOU!

A General Example of How Competition Works in Business

Here is a simple example of how two companies compete for your business, and how you as the consumer, benefit big time!

Business A opens a business and starts to sell blue cubes for $10 each. Business is great… until Business B opens nearby and starts to sell blue cubes at $9.

Business A, seeing a drop in revenue because their competitor is beating their price, lowers their price to $8 AND puts on a special where you can buy 2 blue cubes for $15. Sales go back up.

Now YOU get the same blue cubes for less money. You’re benefiting, but here’s where it gets fun.

There’s only so much price-dropping you can do before it gets unprofitable so Business B invents a better quality blue cube!

Now you have a choice, you can buy a blue cube for $8 with Business A or buy a better quality cube for the same price from Business B.

As a consumer, you’re now saving money and getting a better blue cube.

Business A responds aggressively by throwing in a lifetime warranty on their cube, AND you can now get red, yellow, and green cubes! SUPER CHOICE and “worry-free shopping”.

Business B applies the same but says if you buy cubes from them, you’ll get a free triangle with every purchase!

Now you’re saving money, you’ve got choice, you’ve got improved quality, and you’re getting free stuff.

Competition all over America forces companies to drop prices, put on sales, increase quality, give you more choice, and improve their customer service.

Finding Lower Energy Rates is Fueled by Competition

The entire concept of energy deregulation is built around the principle of competition.

The reason your state deregulated their energy markets is because they considered your utility as a monopoly, which they are, and they gave you a choice!

That sparked competition and now you have suppliers that can offer your lower rates, more choices, better plans, and awesome customer service!

I know. There are advantages to working with the same energy consultant year after year and building a relationship. But always remember that another energy consultant could find you a lower rate and a better plan because of COMPETITION!

My point is, whether someone contacts you about energy, telecom, or anything else, hear them out! Take 10 minutes and listen to what they have to say and what they are offering, and check out their pricing.

The worst-case scenario is you decide to stick with your current plan. No loss. But best-case scenario, you find lower rates and save a ton of money, get a better plan, and better customer service. You win!

Not bad eh!

So, think twice the next time you tell someone you are already covered. You’re fear of “being sold” or of changing may just be costing you more money. What do you think?