Controlling Electricity and Gas Costs

The energy market has never been as volatile as it has been recently.  Your company can control your energy costs  through smart hedging strategies that energy contracts can provide.

To the uninformed, energy procurement seems simple.  Quality is not an issue since electricity and gas are always the same when delivered to your facilities.  The problem: energy pricing is complex.  Therefore, it’s not sufficient to just get quotes from three or four energy sales people and then select the one with the best price.

Clients such as the Boston Red Sox, Simmons College, Leviton Manufacturing. WCVB-TV, Plymouth County and Middlesex County turn to Better Cost Control to reduce their energy risk, control their costs, and protect their interests.   As a licensed energy broker working as a business partner, BCC makes quick decisions on their behalf when the timing is right–saving these companies thousands of dollars and eliminating budget risks.

Because energy is a commodity, timing is everything.  Just like stock prices, energy prices fluctuate—but predicting the price direction is even more difficult because the information needed for decision making is hard to interpret.  The experts in energy markets, therefore, make split second buying decisions.  Suppliers then need to add margin to the pricing they quote to cover their bets for future fluctuations measured in fifteen minute increments– rather than hours–since most companies are not prepared to sign the contract quickly.  Even then, their quotes are only good for that day.  For this reason, companies that work with a licensed energy broker—who can make quick decisions for them—pay significantly less for their energy than those that deal directly with energy providers.

Add to this complexity the rules, regulations and a variety of different fees that are specific to each state. There are even some fees that are specific to only certain regions of a state.  Then there is the question of whether your company is even on the correct utility rate. This is based on your historic energy consumption, but you cannot assume you’re your rate is the correct one.

Finally, consider the complexity of arcane contracts that affect how everyone sets their prices.  The price from supplier A may be lower than supplier B, but the contract terms might make supplier B the better deal.  Many companies don’t understand what they are committing to in their contracts. Terms like RMR, ICAP-Tag, Congestion, Capacity, Clearance Price, Capacity Reserve, basis, and LFR don’t have much meaning to most people, but when it come to energy contracts, they matter.

As a licensed energy broker, Better Cost Control can negotiate the best prices for electricity and natural gas. Using our regulatory knowledge and experience, you can be confident of securing the best energy options, regardless of your annual energy budget.

To get energy pricing, contact us  at http://bettercostcontrol.com/get-a-price-quote/

Are your entitled to credits from FedEx, UPS and DHL?

Did you know that when a FedEx morning delivery letter misses the 10:30 guaranteed delivery time, that you are entitled to a 100% credit for that shipment?

All the major package delivery companies have a variety of service guarantees.  To claim credits on these guarantees, you need to review the invoices to see the delivery date and time, compare that to the guarantee and then file for credits all within ten days.  Do you have the time and energy to do this?  I’ll bet the answer is no!

 Our industry benchmarks demonstrate that 3% to 5% of deliveries are not performed to the guaranteed service level.  So if your company spends $150,000 on FedEx or UPS shipments, there might be $4500 to $7500 in credits that you are missing out on.  If you spend $500,000/year, then the numbers rise to $15,000 to $25,000 in possible credits.

You say, ” I don’t have time to worry about that!”

I say: there are automated ways of doing this that take absolutely no time.  You just get a check in the mail every month.  It’s like free money!   Read about how one client  http://bettercostcontrol.com/cs_riso_inc.html did it.

The mantra of cost reduction is to leave no stone unturned.  Saving small amounts in many areas adds up to serious money.

What is the impact of $50,000 of cost reduction compared to $50,000 of additional sales?

This blog is under development.  But ponder the above thought.  The services provided by Better Cost Control allow you to improve your bottom line with virtually no effort or risk.

Come back soon.