Most hotel operators shopping for a new energy supplier get quotes the informal way — a call here, an email there, whichever rep followed up fastest. That approach almost always leaves money on the table. A structured RFP process, even a lightweight one, consistently produces better pricing and better contract terms. Here’s how to run one.
Why an Informal Process Costs You Money
Suppliers price competitively when they know they’re competing. A single quote, taken at face value, has no market pressure behind it. Even reaching out to three or four suppliers with the exact same request — same load data, same contract terms, same deadline — puts every bid on equal footing and forces suppliers to sharpen their pencils.
Step 1: Assemble Clean Load Data
Before requesting a single quote, pull 12 months of interval usage data for the property or properties involved. Suppliers price more aggressively when they can see an accurate load profile rather than estimating from a single monthly bill. Incomplete or estimated data almost always results in a pricing cushion built in by the supplier to protect against uncertainty.
| ⚡ Energy Now Tip: If you’re bidding a multi-property portfolio, present the combined load as one package. Suppliers price aggregated volume more competitively than they price the same properties individually. |
Step 2: Standardize the Request
Send all suppliers the same request. Include contract term options of 12, 24, and 36 months. Require a common start date and an all-in price that includes capacity and pass-throughs. Standardizing the ask is what makes the responses genuinely comparable.
Step 3: Set a Firm Bid Deadline
Energy markets move daily. A bid process that drags on for weeks produces quotes that aren’t really comparable. In contrast, they were priced against different market conditions on different days. As a result, a 3–5 day response window keeps bids anchored to a consistent market snapshot.
| ⚡ Energy Now Tip: Request that all quotes be submitted by a specific time on the deadline day, not just a date. This prevents a supplier from waiting to see competitor pricing before finalizing their own bid. |
Step 4: Compare All-In, Not Headline Rate
The lowest headline supply rate isn’t always the lowest total cost once pass-through charges, contract length, and early termination terms are factored in. Build a simple comparison that normalizes every bid to a true all-in rate over the full contract term before making a decision.
Step 5: Negotiate Before You Sign
A competitive bid process gives you leverage even after quotes come in — sharing that a competing supplier came in lower (without naming them) often prompts a final round of improved pricing. Suppliers expect this step and build room for it into their initial bids.
Running a real RFP takes more coordination than accepting the first quote that lands in your inbox, but the pricing difference is almost always worth the extra week. Energy Now runs this process on behalf of hotel clients, managing supplier outreach, data packaging, and bid comparison from start to finish.
Want a competitive market check before your next renewal? Send us an email at info@energynow.online for more information.
