As more and more Third Party Intermediaries (TPI) enter the energy market, the competition is becoming ever tougher. Worryingly, the techniques used by some brokers are often underhand in order to gain business leaving some of the more transparent TPIs in the dust.
We give you the low down on the different business structures and techniques from the ‘fee-hiders’ to the ‘supplier-affiliates’, so you can ensure your broker really is working for you.
With growing issues such as ever decreasing consumptions – causing financial issues for the majority of TPIs paid on volume-based commissions, and more and more TPIs entering the market, how can they afford to stay afloat?
These are the TPIs that claim to be impartial and transparent, having no affiliations with a particular supplier. Their prices are extremely low, often with no standing charge and no competitor can beat them. Sign the customer up and bam, up pops a host of undisclosed fees the customer wasn’t expecting, bringing their unit rate to well above any of the other TPIs offerings.
To ensure you don’t fall into this trap, make sure you ask if the prices are fully inclusive of all charges and if a price seems too good to be true, it probably is.
The supplier affiliates
Be careful of these brokers who have made a deal with a supplier to give them a certain amount of business. They’ll hide better deals from customers to ensure they sign you up to the supplier that gets them the most commission.
The only way to avoid this is to speak to a broker that is impartial with no supplier quotas to fill.
The love and leave yous
These brokers will sign you up with a supplier, collect their commission and leave you to it. You’ll most likely encounter issues with termination and objections and be left in the lurch with no aftercare.
Pick a broker that will see you through the whole journey and be on hand through the length of your contract.
Several brokers will glean your details on a badly created form fill and then keep calling you until you give in. We suggest you advise them that you’ve already signed a new contract for five years so you’ll get a few years of peace. Unfortunately the advisors will be cold calling salesmen with little industry knowledge.
While we all appreciate that businesses need to engage in telesales, constant cold calls will result in harassed customers signing up to deals just to get rid of the TPI.
Remember, pick a supplier that is impartial, transparent – giving you all the fees up front, with full contract support and industry knowledge.
Business Juice compares over 30 energy suppliers, giving your business the best deal and will be of the end of the phone for the full length of your contract.