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NAVIGATE POWER. 2013 New Broker Introduction. Our Commitment to You. Welcome! - PowerPoint PPT PresentationTRANSCRIPT
NAVIGATE POWER
2013 New Broker Introduction
Welcome!Whether you’re an experienced energy professional or new to the industry, we’re excited to partner with you. With over 25 years of combined electricity and natural gas experience, we have mastered the industry’s best practices and are looking to share them with you. My partners and I have built Navigate Power on the principles of full transparency, servant leadership, and work ethic. Though the energy business can be challenging, it can be very lucrative if we remain disciplined and work together. We are committed to providing you:
The best resources and up-to-date market information Competitive supplier relationships and pricing Technical and customer relationship support On time commissions and detailed reporting
Thank you for your interest in becoming a Navigate Power broker. Let’s make it happen!
Sincerely,
Mark NakayamaCEO, Navigate Power
Our Commitment to You
Deregulation 101: Quick History
Most plants generate electricity by burning coal, natural gas, and oil. Fossil fuels are burned to create steam that are used to turn huge turbines, creating electricity
The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines.
1. Generation 2. Delivery
3. Meter Reading & BillingThe LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance.
REGULATED MARKET
Deregulation 101: Quick History
Independent generation plants upload electricity to the open market to be traded, like other commodities like oil, natural gas, corn and soy beans.
The local distribution company (“LDC”) is responsible for safely and reliably delivery electricity across their network of poles and wires—or transmission lines.
1. Open Market (NYMEX)
3. Delivery
4. Meter Reading & BillingThe LDC is responsible for reading meters and billing. The LDC is also responsible for servicing and maintenance.
DEREGULATED MARKET
2. Retail Energy Suppliers (RES)
RES’s use their cash and credit to buy large loads of electricity off the open market, in the hopes of reselling/ retailing the cheaper power to individual commercial or residential customers.
Deregulation 101: Quick History
DEREGULATED MARKETS
For an interactive overview of all deregulated utilities in Ohio, please visit:
www.puco.ohio.gov/pucogis/esa/index.cfm
The Opportunity
4.5 – 5.9¢ per kwh
’11 to ’12 6.2¢
2008 9.8¢
2009 8.1¢
2010 7.1¢
The graph shows annual average all-in fixed prices. The majority of business and residential customers choose budget certainty and look to “lock” in a price.
Current market prices are extremely low, making it a great time to lock in a rate.
Retail Energy Supply Partners
PRECISION EXECUTIONPricing, Proposals, and
Contract Strategy
1. Get a copy of the last three months of the electricity supply bill Helps pass credit More accurately calculate historical
rates
Getting “IT” Right, The First Time
2. Collect the business and contact information
Legal entity and DBA Decision maker’s name Phone number, fax number, and e-mail
address** Navigate Power generates e-mails on
behalf of it’s agents, informing clients of referral incentives, market updates,
renewal rates.
PRICING
Getting “IT” Right, The First Time PRICING
3. Collect current contract information Current electricity supplier Contract end date Type of rate: Fixed or Index
4. E-mail information to [email protected] Attach a bill copies
5. You will receive an e-mail confirming your pricing request
Key Terms and Definitions
annual usage: Quantity of kwh client uses in a year
transfer price: price from supplier with no margin or zero mark-up
contract price: transfer price plus margin. mil: $0.001/ kwh or 1/10th of a penny per kwh term: Number of months contracted ESA: electricity service agreement
Pricing: Key Terms and Definitions
So What Is A Kwh?
A unit of measurement for electricity
Kilo watt-hour
1 Kwh = Ten 100w light bulbs burning for one hour
100w
Pricing: Building a Contract Price
Step 1:Supplier gives a
transfer price
Step 2:Decide on a
margin to add or “build into”
contract price.
Step 3:Declare a
contract price on agreement
Concept: The more margin you add or “build into” the contract price, the less the client will save.
After you submit a pricing request to [email protected], you will receive pricing back from various RES’s.
Savings
Commission
Example: Calculating Prices and Savings
So, Let’s say your friend Gino owns a pizza joint. Gino’s Pizzeria uses 300,000 kwh per year. They are currently paying $0.08650/ kwh.An RES returns a transfer price of $0.04950/ kwh.
Gino’s Pizzeria
Current Rate
$0.08650
Contract Price
$0.05550
Difference in Rate
$0.03100
Transfer Price
$0.04950
Margin: 6 mils
$0.00600
Contract Price
$0.05550
Annual Usage300,000 kwh
Difference in Rate$0.03100/
kwh
Estimated Annual Savings
$9,300
A
C
B
“What About Me?”: Calculating Commissions
Alec Baldwin in “Glengarry Glen Ross”
You’re a new agent making 30% of gross revenue. You must first
calculate revenue.Annual Usage
300,000 kwh
Margin Added
$0.00600/ kwh
Total Annual
Revenue$1,800
Your Commission:
$540($1,800 x 30%)
Booking a DealAfter you close the deal, our operations team asks for your help when submitting your deals. This will help us better track the deals and ensure on-time enrollment.
Please make sure all deals:1. Have a filled out deal cover
sheet2. Includes a copy of a recent
supply bill, one per account number
3. Contain all pages of the contract, including terms and conditions
4. Are packaged together in one document.
Submitting Deals E-mail to [email protected] to (888) 783-0381
Tracking, Reporting, Commissions
Salesforce.com
We understand that it’s hard enough generating sales. That’s why we strive to ensure transparency, accuracy, and timeliness when it comes to your pipelines and money.
Through salesforce.com, we are able to:• Track your pipeline and ensure
on-time pricing• Ensure accurate reporting• Pay commissions in full and on
time• Launch e-mail and marketing
campaigns to help you stay in front of your clients and generate referrals
Questions & Inquiries
If you have any questions, please contact your channel manager (CM) or
Mark Nakayama(630) 881-0621
Or visit us at:www.navigatepower.com