A walk through the MiC Energy Brokers process with one of our brokers

A walk through the MiC Energy Brokers process with one of our brokers

One of the simplest ways to reduce your business’ energy bill is to outsource the task. MiC Energy Brokers are experts in energy price plan comparisons, so we can inevitably save your business both time and money. To find out what new customers can expect, we sat down with Ryan Morse, one of our brokers, and asked him to walk us through the process from start to finish.

Step 1: Getting to know the customer

The process starts with an introductory conversation, Ryan explains. 

“The goal of that conversation is to find out who the customer is, what kind of business profile they have, what their usage patterns are, and what the next 12 to 24 months of business look like for them, so we can start developing a procurement strategy that delivers on the customer’s unique needs.” 

Following that introductory conversation, MiC Energy Brokers request a letter of authority to contact the customer’s current retailer. “That letter is entirely non-committal,” Ryans says. 

“It doesn’t lock the customer into using us. It really just gives us the authority to collect the information we need for the next step in the process.”

Step 2: Strategy development, market comparison, and recommendations 

The info obtained from a customer’s current retailer is used to put together an individually tailored energy procurement strategy. 

“We present that strategy back to the business, basically saying, ‘Here’s what we found in terms of your contract end date, rates, tariff code, and so on, and here’s what we think will work for you’,” Ryan says.

At this point, and with the customer’s okay, MiC Energy Brokers go out to the market and runs an exhaustive price plan comparison. 

“We work with 3 major energy retailers and some carefully selected boutique retailers that support business to business energy, so we can be sure we’re going to find the best pricing plan available. Plus, we don’t just collect the energy rate – even though that’s the most important bit of data – but also the network charges, the demand charges, the environmental charges, and all the things that make up the total cost of an energy bill.”

MiC Energy Brokers collate all this information in a comparison report. “It’s a big document, containing a detailed breakdown of each retailer’s rates for each charge. Having all that information is important because it allows the customer to see how we arrived at our final conclusions,” Ryan explains. 

But crucially, MiC Energy Brokers keep things as simple as possible by stating its final recommendation. 

“Basically, the recommendation says, ‘We think that retailer X is the best option for you because they can offer an overall saving of X amount of dollars over such and such a term.’ That kind of clear communication is key to how we work,” Ryan says.

Step 3: Facilitating “the switch” and post-sale monitoring and support

Customers have 5 days to consider MiC Energy Brokers’ recommendations, and to do any of their own due diligence they feel necessary.

“If they decide to go ahead with us at the end of that period, they sign a contract and we then facilitate the switch to their new retailer,” Ryan says.

And that’s not the end of MiC Energy Brokers’ services, Ryan explains. 

“We don’t just help the business switch retailers and then leave them to their own devices. There’s also a post-sale process that involves ongoing monitoring and pricing support. That part of our service is critical to ensure that if the market fluctuates – pushing energy prices down, say – the customer can renegotiate their contract and potentially switch to a better plan.”

So how does Ryan summarise the key benefits of MiC Energy Brokers’ services?

“Contracting us is really like hiring an expert energy procurement officer for your business,” he says, “but with the advantage that we’re much cheaper and you don’t have to employ anyone.”

We regularly review the energy market and work with businesses to help them take control of their energy bills and achieve potential savings. Contact us for an obligation-free review today.

Looking to save on your business energy bill?

We find savings for 4 out of 5 businesses. See how much your business could save.

Tackling the rising cost of running a business in Australia

Tackling the rising cost of running a business in Australia

Running an Australian business is getting more expensive by the day. In April 2022, data released by the Australian Bureau of Statistics (ABS) revealed that 57% of Australian businesses had experienced increased running costs in the previous quarter, and 21% of businesses said their costs had increased to a “great extent.”

Here, we identify the major factors driving the cost of doing business in Australia upwards, and we point to a simple way of easing the pressure.

A Perfect Storm for Inflation

Perhaps the biggest factor driving the increased cost of doing business in Australia is inflation. Just this month, Australia’s inflation rate reached 6.1% – the fastest annual increase in 21 years. We seemingly hear about skyrocketing inflation whenever we turn on the news these days. But what does the term “inflation” actually mean?

Inflation refers to a decrease in the effective purchasing power of money. If you have $1,000 now and the annual inflation rate is 10%, it means that in one year’s time you will get 10% less goods and services (on average) for your $1,000. Effectively, then, inflation eats away at the real value of money. Sometimes it takes small bites, other times (like now) it takes larger bites. Either way, inflation inevitably increases the prices of goods and services, leading business costs to spiral upwards.

What Causes Inflation?

Inflation has two main causes:

  1. An increase in the money supply, which undercuts the value of existing money
  2. A decrease in the supply of goods and services, whose relative scarcity increases their price

In the wake of covid-19, 2022 represents a perfect inflationary storm. Not only are we dealing with the on-flow effects of governments liberally printing money and boosting credit to stimulate their economies in response to the pandemic, but we are also dealing with the other major factor impacting business costs in Australia: supply-side issues. 

Labour Shortages + Transport Bottlenecks + Production Delays + War = Supply Issues 

Companies the world over are facing issues in sourcing the products and people they need to do business, and Australian firms are no exception. Skilled labour shortages – which may in part be attributed to the Great Resignation – are currently compounded by two issues impacting the supply of commodities and goods.

First, the world is still feeling the downstream effects of covid-related lockdowns, which shut down businesses throughout 2020 and 2021, causing massive transportation bottlenecks and production delays. Second, Russia’s invasion of Ukraine and the ensuing trade sanctions have seriously undercut the global supply of key commodities, especially oil and wheat. 

A decreased oil supply is particularly problematic for Australian businesses because of the ripple effect it has on energy prices. Oil is still a critical source of energy throughout much of the world, so anything that reduces the oil supply necessarily increases demand for other forms of energy, consequently raising energy prices across the board.

Lowering the Cost of Doing Business in Australia

ABS data suggests that the most commonly reported business cost increases are for fuel and energy. As such, it is more important than ever for businesses to shop around and find the lowest energy prices available on the market at a given moment. For business owners who simply don’t have time to shop around themselves, Make It Cheaper can help.

At Make It Cheaper, we regularly review the energy market and work with businesses to help them take control of their energy bills and achieve potential savings. Contact us for an obligation-free review today.

Looking to save on your business energy bill?

We find savings for 4 out of 5 businesses. See how much your business could save.

5 Ways to find hidden savings in your business

5 Ways to find hidden savings in your business

Between the increase to minimum wages, the increase in superannuation and rising inflation, many aspects of running your business are becoming more expensive.

While it’s always prudent to keep an eye on your expenses, it’s now becoming crucial to review your ongoing and everyday operating costs to ensure you’re not paying too much. 

Conducting an audit to identify areas where you could save is likely to generate a strong return on investment, in terms of time spent auditing vs savings made. It can seem like an overwhelming task, but with a clear hitlist and strategic goals, you can knock this project over sooner than later. 

The sooner you get started, the sooner the savings flow through. So, here are a few different areas of business operations you could review with a goal of making savings and driving efficiencies, without compromising on quality, service or output.

1. Staffing

Your team is likely to be amongst your top two expenses, alongside rent/lease. Your staff expenses may have increased in line with a recent 5.1% increase to minimum wage, and the July 1 uptick in superannuation (10% to 10.5%). 

While reviewing staff requirements can be a huge undertaking, it could reveal some impactful savings. For instance, retailers and hospitality businesses may be able to review demand on specific days and adjust staffing levels, while corporates may be able to analyse their organisational structure, to ensure all roles offer strong ROI. 

2. Subscriptions

This is one of those expense lines that can catch many businesses off guard, as that pesky “auto renew” can see you paying for resources you don’t ultimately use. 

These usually get auto-debited from credit cards or bank accounts, so grab 12 months worth of statements and highlight subscriptions. Then, analyse whether you really get value from them. Keep an eye out for subscriptions and apps to do with HR and hiring/scheduling; news sites; IT and tech; and operations and logistics. 

Reviewing other recurring expenses to the business, like consultants and freelancer agreements, can also offer savings. 

3. Supplier costs

It’s good practice to review supplier costs on at least an annual basis, looking for opportunities to outsource elements of production where possible. 

Depending on your specific suppliers, you might be able to negotiate lower prices based on volume or loyalty. It may also be a good idea to shop around with other suppliers to see what’s available: you can take these costs back to your existing supplier to price match, or look at moving suppliers if the savings are significant. 

4. Energy expenses

With energy price increases taking effect as of 1 July, your business/es may not have received a bill that reflects higher prices yet – but they’re coming. Increasing wholesale energy prices have prompted regulators to approve price hikes nationally of up to 19% for businesses (depending on your state or territory).

Electricity, gas and even solar rebates are all being impacted and the more sites or premises you have, the greater you’ll feel the impact. There are 5 things you can do to help ensure your business doesn’t pay too much for energy, but the most impactful is around comparing energy plans. By auditing your usage and rates then shopping around for a more competitive deal, you have an opportunity to move to a cheaper network tariff, with your provider or a new retailer.

5. Internet and phone plans

When it comes to the basics in your organisation, like internet access, phone systems and mobile phone plans, there can be a wide margin between the cheapest and most expensive providers in the market. 

Reviewing your internet or mobile plans offers a great opportunity to find better rates, with particular cost efficiencies available when you bundle services together (ie internet + phone + mobile phones). Start by asking your existing provider for a better deal, and if they’re not willing to come to the party, review your options in the market.   

At Make It Cheaper we constantly review the energy market, working with businesses to help them take control of their energy bills and achieve potential savings. Contact us for an obligation-free review today on 1300 957 721.

Looking to save on your business energy bill?

We find savings for 4 out of 5 businesses. See how much your business could save.

3 Ways businesses can combat rising energy prices

3 Ways businesses can combat rising energy prices

After surviving two of the most difficult and volatile years in trading history, businesses are now facing a raft of new financial challenges – including a massive increase to energy bills.

Depending on where you live, your next energy bill is likely to be substantially higher. Here, we outline some of the support, incentives and individual actions you can take to minimise the impact on your bottom line. 

Federal government support:

You may be eligible for national support and programs, such as CitySwitch: a sustainability program that supports office-based businesses to improve their day-to-day energy and waste efficiency. This program provides members with one-on-one support from an experienced program manager, with a goal of helping you implement initiatives that move your business towards carbon positive. 

There are other programs related to driving energy efficiency and research and development grants. Learn more here.  

State government support:

In recognition of escalating energy bills, a number of government concessions or rebates are available to help businesses manage. Depending on your state or territory, your business may be eligible for government energy efficiency and sustainability rebates and assistance.

For instance, in NSW you can apply for Lighting for small business. The Energy Savings Scheme helps businesses upgrade to energy-efficient LED lights, with the cost of purchasing and installing the LED bulbs (by a professional electrician) is heavily subsidised.

Meanwhile in Victoria, discounts and special offers are available from accredited providers under the Victorian Energy Upgrade program, which can help you with the cost of purchasing things like energy-efficient lighting; hot water system upgrades; heating, ventilation and air conditioning; and water-saving fixtures and fittings.

Furthermore, if you’re classified as a residential customer (such as aged care facilities), you may be eligible for one-off energy rebates in your state or territory. In Queensland, it’s a “cost of living” rebate worth $175 and it’s automatically applied to your next energy bill. In Victoria, it’s a $250 Power Saving Bonus payment, but you have to apply

Different programs, grants and incentives are available depending on your location. Review your options here.

Individual business action:

The above support can help put your business in a better position to absorb increases to energy bills. Regulators have approved increases of up to 19%, and while this varies between states and territories, the bottom line is: most businesses can expect their energy bill to rise.

In your business, there are a number of things you can do to reduce energy costs and improve efficiency. This really boils down to being proactive on two fronts: first your energy usage, and secondly, how much you’re paying for energy.

If you are not in the habit of embracing energy efficiency in your business, then now’s the time to start. It can be tricky, depending on your business. If you run a hospitality business, for instance, you need to use energy at specific peak times, and there’s not much you can do about that. 

That said, taking action on small but impactful habits can make a big difference. Try things such as:

  • Switching lights out to energy-efficient LEDs.
  • Turning off lights and temperature control when a room is not in use. 
  • Turning off the air-con on moderate days when it’s not strictly needed.
  • Only running the dishwasher when it’s full.

Then, make sure you’re not paying too much for the energy you do use, by comparing your current energy retailer against the offers in the market. Compare both electricity and gas retailers and review different options such as time-of-use pricing, off-peak usage, or smart meters, to see what options you have to achieve greater energy efficiency throughout your business, and save money at the same time. 

At Make It Cheaper, we regularly review the energy market and work with businesses to help them take control of their energy bills and achieve potential savings. Contact us for an obligation-free review today on 1300 957 721.

Looking to save on your business energy bill?

We find savings for 4 out of 5 businesses. See how much your business could save.

Why businesses need to lock in energy rates – now

Why businesses need to lock in energy rates – now

With energy price increases due to take effect 1 July, when should energy customers shop around for a better deal? The answer is now – and there are 5 things you can do to help ensure your business doesn’t pay too much.

Over the past few months, we’ve witnessed substantial disruption in energy markets and a significant rise in rates across the country. 

Relevant energy regulators have approved increases of between around 5% and 19% for households and businesses, depending on the location, and some retailers have already advised customers that their rates are going up by 100%+. Others have even taken the step to tell their customers to shop around ​​for a better deal, so no-one will be immune from escalating energy costs.  

Make It Cheaper’s Nathan Schofield says the issues driving this crisis, which include growing wholesale prices, increasing demand, and an over-reliance on fossil fuel energy, can’t be solved immediately.

“It requires government intervention and we need to bring more renewable energy sources online asap, so it’s not a short term fix,” he says.

So in the face of skyrocketing prices, what can businesses do to protect themselves from massive bill shock?

  • Engage with your provider. They’re required to give you a certain amount of notice in regards to price hikes (varying state by state), so look out for price change notifications from energy retailers.
  • Review your energy usage. It’s quick and easy to check your business’ meter data and audit your last 12 months of consumption. From there, you may find opportunities within your load profile to shift peak business activity to cheaper times of the day. 
  • Compare energy plans. This is the most powerful way to take control of your bill and make sure you’re not paying too much. After auditing your usage and rates, see if you have an opportunity to move to a cheaper network tariff, with your provider or a new retailer.
  • Lock in long-term fixed rates. The further into the future that a business can “hedge” their electricity, the better their pricing will typically be. Long-term contracts typically present better pricing value over short-term contracts.
  • Check eligibility for rebates. Businesses may be eligible for rebates or grants to help deal with these escalating costs: visit the government’s rebate finder to see what’s available.

Unfortunately, many businesses aren’t noticing price rises until they receive their bill. By then, they’re already several weeks (or potentially even months) into a new bill cycle, which exposes them to higher bills for a longer period of time. That’s why it’s so important to take action as soon as possible. 

Make It Cheaper’s Jenny Gordon suggests businesses should review their pricing at least once per year. 

“Customers should engage with a broker to help them understand which retailers offer a bit more flexibility on their contracts… so they can capitalise on any opportunities to re-set their contract, if the market comes down again,” she says.

What are the risks of sticking with your current energy plan?

With energy prices set to soar across the country, those businesses who choose not to review their current energy plan (or who delay it) face the real risk of over-paying on their energy bills.

The process of shopping around for a better deal can take some time, depending on how big and complex your energy needs are, so Make It Cheaper’s Ryan Morse suggests ticking it off the to do list sooner than later.

“It can take a few months to find a good energy deal for the commercial and industrial sectors, while finding a small market SME energy plan can be a faster process. Either way, businesses should start their procurement process early to ensure they’re maximising their potential for sharp pricing,” he advises.

“A commercial energy broker like Make it Cheaper can offer suitable advice and help businesses know an ideal time to shop around. Small market (SME) customers are likely to see an increase [in energy bills] in the next few weeks, and should attempt to sign a fixed-term energy contract ASAP,” he advises.

Longer-term, he adds that federal and state governments should “come together to design and rapidly implement an action plan that addresses the runway cost of energy generation in this country.”

“As a country, we are 16th in the world for natural gas production and we should be welcoming the high-price of natural gas on international markets. Instead, domestic customers are suffering, as Australia lacks a fixed-reserve of natural gas for electricity generation,” he explains. 

“Natural gas needs to be reserved for domestic generation first, at a gazetted rate, before any gas is exported to international markets. Natural gas is our ‘transition fuel’, touted as our solution to bridge the gap between coal and renewable generation, and should be protected by our government under a separate domestic market or reserve.” 

Get an obligation-free energy review

At Make It Cheaper we constantly review the energy market, working with businesses to help them take control of their energy bills and achieve potential savings. Contact us for an obligation-free review today on 1300 957 721.

Looking to save on your business energy bill?

We find savings for 4 out of 5 businesses. See how much your business could save.