BOSTON, MASSACHUSETTS, US, June 21, 2019 /EINPresswire.com/ — Small businesses seem to be missing out on the energy breaks larger corporations are taking advantage of in deregulated markets, especially during the peak summer and winter months.
According to electric customer migration data from the Massachusetts Department of Energy Resources, only about 65% of small businesses in the state switched from incumbent electric power sources to competitive electric sources in 2018, compared to 93% of large commercial and industrial companies who switched energy providers there last year.
There are a number of reasons small businesses are falling behind in the competitive energy market. According to Demorian Linton, Principal Owner of Inertia Resources, which is headquartered in Boston, but serves deregulated markets across the US, part of the issue is that small business owners have to wear a lot of hats and they try and do it themselves, without realizing they can leverage the same kind of expertise and pricing, as big corporations.
“The majority of the big businesses in the area take advantage of energy brokers to negotiate and lock in rates for them,” said Linton. “Business owners need to realize, just as they have a lawyer or accountant for their business, they should have an expert to broker their energy, too. There are so many things small business owners don’t know about when it comes to brokering their own energy, that they miss out on substantial savings by thinking it’s just a utility bill and they can do it themselves.”
According to a National Federation of Independent Business poll, energy costs are one of the top three expenses for 35% of small businesses. Linton said small businesses get taken advantage of by suppliers because they don’t realize energy suppliers typically won’t contact them to renew until just before their contract expires. This allows the cost per KW to increase throughout the year, especially during the peak summer and winter months, and when it’s time to renew, businesses are having to renew at a higher rate every year.
Energy suppliers also have to adjust their pricing margin to support marketing and advertising costs, that are then passed along to consumers.
Linton said energy rates in Massachusetts alone, have increased 94% in the last five years, and small businesses can grow their bottom line by following the lead of big corporations to work with brokers to save money on energy costs.
Energy Brokers save companies money on utility costs by leveraging their buying power and relationships with energy suppliers to negotiate the best rates, manage market fluctuations, predict futures, and capitalize on fixed-rate contracts to lock in the best energy rates for extended periods of time. They also have about half the overhead of suppliers and can pass that savings directly on to businesses.
Linton’s company, Inertia Resources, is one of the only premium brokers of electricity in the country for two of the largest U.S. energy companies. They broker energy for some of the most well-known Boston area businesses like New Balance Corporate, the Auerbach Center, the Bruins’ practice facility, G2O Spa and Salon, Lolita Cocina & Tequila Bar locations, Yvonne’s, and all Davio’s restaurant locations. Inertia saved Lolita’s alone, over $64,000 in energy costs in their first six months by leveraging a rate that was $.04 less per KW for them.
Linton said as energy costs continue to increase, small business owners need to proactively evaluate their approach to energy suppliers or they may not be able to adjust the price of goods and services quickly enough to match rising energy costs without hurting their customer base.
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About Inertia Resources
Inertia Resources is a premium energy broker built to give businesses and consumers nationwide the best pricing and options to reduce rising energy costs and boost their bottom line. As one of the only preferred premium brokers in the United States, Inertia works exclusively with a small handful of top tier energy providers, including the two largest suppliers in the country (Engie and Direct Energy), to offer the best pricing and competitive market management for customers for the lifetime of their business.
Inertia’s senior brokerage staff has over 50 years of deregulation experience. The company prides itself on personal service, with on-site agents in Texas, Massachusetts, Pennsylvania, Ohio, Illinois, Maryland, Connecticut, New York, Maine, New Hampshire, Rhode Island, and New Jersey. In 2018, Inertia Resources helped 2,500 US businesses, including New Balance, the Boston Celtics and the Boston Bruins, save $4.2 Million in energy costs.
For more information visit https://inertiaresourcesinc.com.
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Source: EIN Presswire