40m kwh. Help

[TheSunpirate]

I am not sure if this is the right place to post. But I need help. I just landed a renewal for 40m kwh and I am out in deep water. I only recently started energy brokering and my company is pricing this through regular channels. First energy etc. I guess I need a mentor, I was under the impression that there are wholesale back end type of pricings I could get for this amount. I am afraid to mess up with a standard fixed rate. I can beat current rate they have but uncertain if I should try for an index based product or standard fixed. Anyone that has any experience, or that can point me to the right direction. This is my first deal of this magnitude and it would really propel me to the next level. Any help is apreeciated. Thanks.

 

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[Guest34764]

@Ubermensch

 

[Ubermensch]

I am not sure if this is the right place to post. But I need help. I just landed a renewal for 40m kwh and I am out in deep water. I only recently started energy brokering and my company is pricing this through regular channels. First energy etc. I guess I need a mentor, I was under the impression that there are wholesale back end type of pricings I could get for this amount. I am afraid to mess up with a standard fixed rate. I can beat current rate they have but uncertain if I should try for an index based product or standard fixed. Anyone that has any experience, or that can point me to the right direction.

Are you running your own brokerage (you have your own license), or you're running this deal through someone else's brokerage?

What type of client?

40,000,00 kWh - or 40,000 mWh - is a nice sized account. Easily six-figure potential.

First Energy was once the market leader; they're out of the market now.

Not sure what you mean by"wholesale."

There are wholesale markets and retail markets. Your client is a retail client, and the suppliers you're going to need to deal with (i.e. First Energy's competitors and counterparts).

If by "wholesale," you mean that you were hoping suppliers would give your client a discount due to the volume, that is a relatively safe assumption. You just need to make sure you're going to the right suppliers.

This is my first deal of this magnitude and it would really propel me to the next level. Any help is apreeciated. Thanks.

You're absolutely right.

This one deal could net you healthy five figures, or even low six-figures.

On a final note: Do not opt for an index price (only exception is if the client has a TERRIFIC load factor, which they will if they are using electricity around the clock). Lock the client in on a fixed contract. This is big. Stay focused until the final step (the contract is signed), and take it one step at a time.

 

[TheSunpirate]

I remember you had mentioned that there are "other" less known suppliers that can give much more aggressive pricing for such large accounts. Hence what I meant by wholesale.

Are you running your own brokerage (you have your own license), or you're running this deal through someone else's brokerage?

Someone else's.

What type of client?

Industrial. My manager has examined load factors. Will look into it.

40,000,00 kWh - or 40,000 mWh - is a nice sized account. Easily six-figure potential.

First Energy was once the market leader; they're out of the market now.

Not sure what you mean by"wholesale."

There are wholesale markets and retail markets. Your client is a retail client, and the suppliers you're going to need to deal with (i.e. First Energy's competitors and counterparts).

If by "wholesale," you mean that you were hoping suppliers would give your client a discount due to the volume, that is a relatively safe assumption. You just need to make sure you're going to the right suppliers.



You're absolutely right.

This one deal could net you healthy five figures, or even low six-figures.

On a final note: Do not opt for an index price (only exception is if the client has a TERRIFIC load factor, which they will if they are using electricity around the clock). Lock the client in on a fixed contract. This is big. Stay focused until the final step (the contract is signed), and take it one step at a time.

Thanks will examine and post what I find.
My next question is that I have never dealt with such a large client before and wanted some advice on etiquette. Once I get pricing do I simply send by e-mail. Do I request a meeting? Do I simply prepare a pdf with an analysis of our pricing?

Thanks a lot for your advice. It's very helpful.

 

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