The recent couple rounds of expansion have included a heavy dose of Ambit Energy natural gas territories. From D.C. to the 3 new territories in Pennsylvania to our newest state of Massachusetts, Ambit Energy has had a lot of gas lately. The down side is the savings we’re used to being able to offer with electricity just isn’t there in most cases with gas. Fortunately in the case of DC and Massachusetts the good news is Electricity will be coming, we don’t know when but both these territories are deregulated for electricity so it’s just a matter of time. My guess is that both of these are very likely targets for the coming Ambition announcements.
So why is gas so much different?
- Margins are MUCH tighter in gas, this has always been the case which is why there is very little competition, look it up… pretty much the only company we have to compete with is the incumbent, most of our competition in the electricity space has not even attempted gas
- Supply/Demand… Right now its summer… no demand so rates are low, come this fall/winter when demand spikes so do rates, winter time where the action (and saving) is with gas
- Natural gas prices are at or near all-time historical lows
- So when you look at the combination of these situations you can see why Ambit Energy has to take a cautious approach, if Ambit locked in a bunch of customers to long term contracts at all-time low prices then 6 months from now in the dead of winter when demand spikes and gas is no longer at all-time lows and you have a recipe for losing big money. This is why you see Ambit’s 1 year contract rates are in some cases higher than the variable rates
How to explain Ambit’s natural gas variable rate
Mr. Customer, “Month by month Ambit Energy adjusts the rate according to wholesale cost, it can go up or down just like the per therm rate you pay right now. Ambit Energy understands it needs to come in lower and we are literally the ONLY supplier in the marketplace that have a demonstrated track record of doing so as documented by the Citizens Utility Board (have printout to show). Combine this proven record with a BBB A-rating and you have the confidence of knowing Ambit Energy will deliver.
For those of you in New York who are used to dealing with the guaranteed savings plan you can pretty much treat this the same way. No we don’t have the guarantee in place, but Ambit’s commitment competitive pricing is the same. Ambit’s goal was never to deliver savings in the form of rebate checks, but rather to deliver the savings up front and have the rebate checks as a fall back safety net. It is rare over the course of a year for a customer not to have saved money with Ambit Energy and the longer they stay with Ambit Energy the odds get even more extreme.
How to explain Ambit’s natural gas contract rate
Mr. Customer, “ I know it may not sound logical to lock in a higher rate than what you are paying now but let me explain why that may not be as crazy as it sounds. It’s summer time and as such demand is low combined with all-time historic low natural gas rates and you have a situation where we are at the bottom of the market. By locking in with our 1 year term rate you will pay slightly more on a per therm basis now when you don’t use much gas but come this winter is where the saving kicks in as rates go up and usage goes up you are locked in for savings. We’re so confident in our service that this contract plan does not have any cancellation or early termination fees associated with it so if you for any reason are not happy you can switch over to the variable plan or switch back to your old company at any time.
How to close
Mr. Customer, “I realize these are two very different approaches but remember either way you go, there is no cost to switch to Ambit, the entire process takes less than 10 minutes and if you are not happy for whatever reason you can switch back at any time again… and… with no cost or termination fees. I realize you are not going to be able to put your kids through college with the savings but you will pay less, you will get some nice rewards for doing so (don’t over sell the rewards) and you will be helping me a lot.
The bullet point benefits list
- Process of switching is FREE & takes less than 10 minutes – stress the simplicity!
- Same gas, same bill, nothing changes, in case of emergency you call the same folks
- You can stick with the same type of variable plan you have now but with Ambit Energy you will simply be paying slightly less.
- If you want price protection for the upcoming winter rate spikes you can choose ambit’s term plan and if you’re not happy you can switch out at any time because there are no cancellation fees
- Free weekend getaway voucher for switching and travel reward points every month for staying with us
- By choosing Ambit Energy you will be helping me tremendously and supporting an American owned company with 100% of its workforce here in the states. (that second part can be especially effective when going up against an incumbent like National Grid which is UK owned)
- BBB A Rating … To outgrow every other company in the country for the last 5 years and still maintain customer service is pretty amazing!
- Citizen’s Utility Board proven track record of saving customers money 100% of the time – http://citizensutilityboard.org/GasMarketMonitor.php
One more customer acquisition “secret”…
In addition to everything mentioned above I HIGHLY recommend leading with the opportunity to 100% of your prospects which will make your customer acquisition even easier because even you’re right in prejudging that Aunt Mary or Grandpa Jim won’t be interested in the business, I promise they will warm up to being your customer much more by having been exposed to the opportunity FIRST. I don’t care if it’s a magazine, your website, a home meeting, hotel meeting, DVD, or what it is, by exposing them to the business they will see the credibility of our business and also they will realize even more how being your customer will help you out.
Wishing you the best of success!
Ambit Energy Founding Executive Consultant
Top 20 Income Earner
Six Time 5-Star Club Qualifier
Pacesetter, Powersurge & Pure Energy Award Winner