Situation #1
A prominent Tri State Real Estate Management company had purchased a building and asked us to market their electric. The previous owner was on an hourly rate which offered a lot of uncertainty. In fact, a month before we took over the account, the Philadelphia area experienced the Polar Vortex and the Peco electric rate jumped from around $.07 cents to over $.20 cents, costing the previous owner an additional $600,000 in 1 month.
Action
As an independent broker, we marketed the account to over 15 companies. We were able to lock the account into a fixed price, bringing cost certainty to our client and saving them hundreds of thousands of dollars annually, compared to what the previous owner had paid over the prior year. Since electric prices are very competitive, we advised the client to start looking at renewal prices now, even though their renewal wasn’t for several months. We again went out to multiple providers and we were able to lower their cost for electric by an additional $.01 cent per kwh saving the client an additional $650,000 a year for the next 2 years.
Situation #2
A leading national real estate management company purchased a building in Newark, NJ and asked us to market both their gas and electric accounts. The previous owner used a third party provider whose contract was about to end.
Action
Because we are an independent broker, we were able to market both accounts to 16 providers. We saved the client over $335,000 a year for 3 years, on their electric account alone.
This is a nice way to buy a building…being able to stick an extra $1 million in your pocket. Needless to say, the client was very happy!
