8:00 am, October 1, 2022
With so many issues in the world and so much uncertainty, the one thing that is clear is that we are paying more for our energy usage and will probably be paying even more in the not-too-distant future.
At the time of writing, there has been limited news coverage of what assistance small-to-medium-sized businesses will receive [click here to find out what help car dealers can expect], with most of the mainstream media focusing on the costs and potential assistance for consumers.
Historically, when running costs increase, these are usually passed on to customers in the form of higher prices on the forecourt.
However, this may not be ideal in an economy where customers’ finances are already stretched and it could also cost sales.
The government hasn’t yet finalised its plans for what help businesses will receive with their energy bills.
So, if you haven’t already done so, you could consider conducting your own business energy audit. That way, you will know how much energy you’re using, how much it costs and where savings could be made.
Here are some of the key areas:
Many businesses use procurement companies to get lower energy rates fixed over a longer period than is available to consumers.
However, these deals are now more difficult to find for those whose fixed contracts have already expired.
Some deals are still available, so if you are out of contract or have one that’s about to expire, it may be worth reviewing and contacting these companies.
Installing smart meters will also give you a very good indication of what your energy usage is.
They’ll automatically update your readings and may assist with monthly budgeting. Consider replacing old and inefficient appliances such as kettles, toasters, and microwaves with newer and more efficient models, too.
As a deterrent to theft, many dealerships leave their lights on overnight. It may be worth installing security lights and turning off the main lights at the end of the day.
Also consider installing sensor lights in areas of the dealership that are frequently used but not occupied throughout the day.
A considerable amount of energy is consumed by air conditioners so it’s important that they’re not blocked and that they’re serviced regularly so that they operate as efficiently as possible.
You may also be able to take advantage of government grants, so check what you are eligible for.
Performing your own business energy audit and negotiating other contracts will not only help you save money, reduce your energy consumption and be more environmentally friendly, but it will also ensure that your dealership is ready for the next four years of uncertainty in the energy market.
This column appears in the current edition of Car Dealer – issue 175 – along with news, views, reviews, interviews, features and much more, including our tribute to Queen Elizabeth II. You can read and download the magazine FOR FREE by clicking here.
