How would you Market and Pitch this Business?

by ruless
14 replies
I have asked a few warrior about this, but wanted to expand on the marketing and get some feed back from

everyone here on the forum. I live in Houston, TX where electricity is deregulated. I sell electricity to

businesses. Most people in my industry work for the utility/power companies directly. I work for an energy

services company that represents a large group of power companies, therefore I can usually get better

rates from the power companies we work with since they're all competing for the same contract. We take

care of all their power needs. Problem with the bill, call me. Contract ending, great, I will negotiate the

new contract for you.

Here's the thing, selling power is not sexy, it's a necessity. How would you pitch it? And what form of

marketing would you use: cold calling, cold walk-ins, direct mail, ppc, etc?


Thanks,

Steven
#business #market #ptich
  • Profile picture of the author Gump13
    Steve,
    With a business like yours I would say all of the above. You would also need a nice website directed towards customers in your area. Create nice flyers to hand out to the public and work with local customers (business are good) to push your cost effective power solution. Be sure to throw in the cost of AC and things like that, that would skyrocket the cost of power. But, yours is the answer! Push all the aspects of how you will save money because that is what people want. The rising cost of gas and food will help as a reason to use your company. I hope this helps with your question.
    Paul
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  • Profile picture of the author Josh Mayers
    Hey Steven,

    I do not have any first hand experience with selling power. However, I happen to be close to a few people that do.

    As a matter of fact, my brother is a part of a business opportunity in which he sells low power rates, and he goes door to door. He has closed many deals, but no one has the time to go door to door, in my opinion.

    If I were to market and pitch selling power to people, I would go with direct mailing explaining the benefits with my contact information, and then I'd close the sales over the phone.

    But this is just my input.

    Hope this helps you out!

    -Josh
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    • Profile picture of the author ruless
      Thanks, for the response. Those are some good ideas.
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  • Profile picture of the author isaacsmithjones
    One thing to bear in mind is the fact that people are LAZY. You can't just approach people and say "You wanna save money on your electricity?"... Well, you can, but it's not the best way to go about it.

    The emphasis has to be on making it EASY for them, and giving them a tangible reward for their efforts (if you're allowed to).

    People are odd: Many people would rather have a box of chocolates now, than save $100 in a year. Why? Because the chocolates are TANGIBLE in their mind. They can picture themselves eating and enjoying the box of chocolates TODAY.

    Realistically, I don't know how much you earn per sale. But if you're earning over $200 per sale, you could easily start (ethically) bribing people to switch over. Go to local restaurants/salons/gift shops... And try to get some vouchers/coupons/gift cards. Preferably those with a monetary value.

    If you make a good case, these businesses will give you a discount on the gift cards, because you're sending them new potential customers.

    So then when you're trying to make your sales... As well as being able to save people money, you can say:

    "Give me a call to switch over today and save yourself $200 off your electricity bill. I'll take care of all of the paperwork, and do the heavy lifting for you. The only thing you need to lift is your dialling finger. Then it's plain sailing and relaxation. In fact, I've already paid for a $40 luxury massage on your behalf. So call now, and I'll sort it all out while you enjoy your massage".

    Well that's an idea for the sort of message that you can be putting out. As I said, it doesn't have to be a massage. It can be a restaurant, or some other treat. But if it's something that the customer can see as INSTANTLY useful/gratifying, then you've got a much better chance.

    Bit like those time share companies who take people on holidays, but it's a much cheaper reward. But on the other hand... You're SAVING them money that they would have been spending ANYWAY. So it's a WIN, WIN, WIN...

    As for the actual medium to use... Try out different things. Personally, I'd probably use postcards. But you've also got cold calling. Then once you have a few clients, then make sure you get referrals. They'll be happy to brag to their friends about saving money AND getting a free, fun treat.

    It's probably not gonna work like magic, but it's something to motivate people to take action.
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    • Profile picture of the author ruless
      Originally Posted by isaacsmithjones View Post

      One thing to bear in mind is the fact that people are LAZY. You can't just approach people and say "You wanna save money on your electricity?"... Well, you can, but it's not the best way to go about it.

      The emphasis has to be on making it EASY for them, and giving them a tangible reward for their efforts (if you're allowed to).

      People are odd: Many people would rather have a box of chocolates now, than save $100 in a year. Why? Because the chocolates are TANGIBLE in their mind. They can picture themselves eating and enjoying the box of chocolates TODAY.

      Realistically, I don't know how much you earn per sale. But if you're earning over $200 per sale, you could easily start (ethically) bribing people to switch over. Go to local restaurants/salons/gift shops... And try to get some vouchers/coupons/gift cards. Preferably those with a monetary value.

      If you make a good case, these businesses will give you a discount on the gift cards, because you're sending them new potential customers.

      So then when you're trying to make your sales... As well as being able to save people money, you can say:

      "Give me a call to switch over today and save yourself $200 off your electricity bill. I'll take care of all of the paperwork, and do the heavy lifting for you. The only thing you need to lift is your dialling finger. Then it's plain sailing and relaxation. In fact, I've already paid for a $40 luxury massage on your behalf. So call now, and I'll sort it all out while you enjoy your massage".

      Well that's an idea for the sort of message that you can be putting out. As I said, it doesn't have to be a massage. It can be a restaurant, or some other treat. But if it's something that the customer can see as INSTANTLY useful/gratifying, then you've got a much better chance.

      Bit like those time share companies who take people on holidays, but it's a much cheaper reward. But on the other hand... You're SAVING them money that they would have been spending ANYWAY. So it's a WIN, WIN, WIN...

      As for the actual medium to use... Try out different things. Personally, I'd probably use postcards. But you've also got cold calling. Then once you have a few clients, then make sure you get referrals. They'll be happy to brag to their friends about saving money AND getting a free, fun treat.

      It's probably not gonna work like magic, but it's something to motivate people to take action.

      Thanks, for the advice. I thought about the gift angle as well. I was going to staple money to my business card, but that gets way too expensive, quickly. I do not get paid on an account for 90 days, so it takes quite a bit of time to recoup all the expenses. The thing about selling electricity, here in Texas, is every company has a contract minimum of one year. And if a company wanted to terminate their contract they would have to pay the monthly average of their bill times however many months are left on the contract.
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      • Profile picture of the author Keethu
        Hello,,
        We can do different types of marketing like Anolog Or Digital marketing ..
        SEO Or Website are the 24/7 marketing Excecutive. they do not require any Man Power.. Informative website will roll as marketing excecutive
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      • Profile picture of the author isaacsmithjones
        Originally Posted by ruless View Post

        Thanks, for the advice. I thought about the gift angle as well. I was going to staple money to my business card, but that gets way too expensive, quickly. I do not get paid on an account for 90 days, so it takes quite a bit of time to recoup all the expenses. The thing about selling electricity, here in Texas, is every company has a contract minimum of one year. And if a company wanted to terminate their contract they would have to pay the monthly average of their bill times however many months are left on the contract.
        I see... Well in reference to people's contracts, make sure you get an idea of when people's contracts are going to expire when you generate a lead. That way, you can put them into a CRM, and contact them just before they renew.

        And not being paid for 3 months can really mess up your cash flow, so yes, it would be much more difficult to get around that. It is still possible, but it would take a lot of work, which may distract you from the task at hand. Because I know that massage therapists would be willing to give away free massages, but it may take some time to find the right people, and then you're spending your time on that, rather than on getting new clients.

        Just brainstorming here, and I don't know how accurate this might be: But if your target market are businesses, you could probably look at the companies register, to see when they registered. The odds are, they started their electricity contract around that date. Not sure how accurate it would be, but it might help.
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        • Profile picture of the author ruless
          Just brainstorming here, and I don't know how accurate this might be: But if your target market are businesses, you could probably look at the companies register, to see when they registered. The odds are, they started their electricity contract around that date. Not sure how accurate it would be, but it might help.[/QUOTE]

          That's a really good idea I haven't thought of - thanks.
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  • Profile picture of the author mjbmedia
    So you can save them a lot of money a year ? enough for them to be able to pay for their years marketing, their years supply of some stationery, etc etc .

    if so JV with suppliers of products/services that are already sold into your target market, that already have a good relationship in place, they can offer your services with their products /services that are already in situ and the savings you give can pay for their services plus make them a few extra $$$

    Now I don't know if that's doable or not over there, we done it here with some power /money saving service say we saved them £5k a year on their energies and done their marketing for them for £4k , they got free marketing plus all the income that marketing generated , you think they were happy ?
    Signature

    Mike

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    • Profile picture of the author ruless
      Originally Posted by mjbmedia View Post

      So you can save them a lot of money a year ? enough for them to be able to pay for their years marketing, their years supply of some stationery, etc etc .

      if so JV with suppliers of products/services that are already sold into your target market, that already have a good relationship in place, they can offer your services with their products /services that are already in situ and the savings you give can pay for their services plus make them a few extra $$$

      Now I don't know if that's doable or not over there, we done it here with some power /money saving service say we saved them £5k a year on their energies and done their marketing for them for £4k , they got free marketing plus all the income that marketing generated , you think they were happy ?
      That's a really great idea!
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  • Profile picture of the author bizgrower
    Target market your lucrative enough low hanging fruit and the larger accounts.
    (Assuming larger accounts take longer to land.)
    (Too small probably is not lucrative enough for you and they won't see enough savings to switch.
    Waste of your time.)

    Obtain contract expiration dates and build that list and keep doing marketing touches.

    Old fashioned in person networking with decision makers at your target businesses.

    Kill many birds with one stone.
    Local, national or regional chains stores, restaurants, bars, hotels.
    (There are many hotel companies that own several franchises in the same
    geographic area. And, they own different brands such as maybe they own
    a couple of Super 8s and a couple of Comfort Suites...)

    Dan
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    "If you think you're the smartest person in the room, then you're probably in the wrong room."

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    • Profile picture of the author ruless
      Originally Posted by bizgrower View Post

      Target market your lucrative enough low hanging fruit and the larger accounts.
      (Assuming larger accounts take longer to land.)
      (Too small probably is not lucrative enough for you and they won't see enough savings to switch.
      Waste of your time.)

      Obtain contract expiration dates and build that list and keep doing marketing touches.

      Old fashioned in person networking with decision makers at your target businesses.

      Kill many birds with one stone.
      Local, national or regional chains stores, restaurants, bars, hotels.
      (There are many hotel companies that own several franchises in the same
      geographic area. And, they own different brands such as maybe they own
      a couple of Super 8s and a couple of Comfort Suites...)

      Dan
      Thanks, for the input. I agree with obtaining the expiration dates, that would be awesome, but I have no idea how to find that information. Does anyone have any ideas or know of a way it can be done?
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      • Profile picture of the author bizgrower
        Originally Posted by ruless View Post

        Thanks, for the input. I agree with obtaining the expiration dates, that would be awesome, but I have no idea how to find that information. Does anyone have any ideas or know of a way it can be done?
        This is when you begin your relationship, call and ask and begin your marketing relationship touches.
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        "If you think you're the smartest person in the room, then you're probably in the wrong room."

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  • Profile picture of the author dgui123451
    I would advertise on the television and radio and also give out a lot of flyers
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