How Can Your Business Benefit From a Reverse Auction?

Darryl Badley
Mar 21
3 min read

Updated: Apr 6

An Auctioneer annoucing which energy supplier just won your business and can save you the most money on your utility bill. He speaks at a podium with an emblem. Two trophies are displayed beside him representing energy savings.

Introduction:

Picture a classic auction: a room buzzing with anticipation, a prized item on display, and bidders eagerly vying for ownership. The auctioneer calls out increasingly higher prices, and the tension builds until a final, winning bid is declared. Now, imagine that scenario reversed. Instead of buyers competing to raise the price, suppliers compete to lower it – and you, the energy consumer, are the prize. That's the essence of a reverse energy auction, and it's a powerful tool for securing unbeatable energy rates.

At RateWise, we're constantly seeking innovative ways to help our clients gain a competitive edge. Our reverse energy auction service is a prime example, and it's offered completely free of charge to our clients with significant energy consumption.

Split image comparing auctions: left shows a seller and buyers aiming for the highest price on green; right shows sellers and a buyer aiming for the lowest price on blue.

What is a Reverse Energy Auction?

A reverse energy auction flips the traditional bidding process on its head. Rather than your business soliciting quotes from various energy suppliers and engaging in lengthy negotiations, a select group of suppliers competes for your business in a live, online auction. They bid down their prices, driving your energy costs lower and lower in real-time.

Three monitors display three energy suppliers cutting costs to win your business represented with dollar symbols in blue, green, and orange. A clock is centered below on a gray background.

How RateWise's Reverse Auctions Work

We've streamlined the process to make it effortless for you:

Eligibility: We first determine if your business qualifies for a reverse auction, typically focusing on clients with substantial energy needs.
Curated Supplier Selection: Leveraging our extensive network and industry expertise, we hand-pick a group of five reputable energy suppliers who are most likely to offer highly competitive rates for your specific energy profile. This pre-selection process ensures that you're getting bids from the best possible contenders.
The Live Auction Event: This is where the magic happens! During a scheduled online auction (lasting either 5 or 15 minutes), the selected suppliers submit their best offers in real-time. You can watch the bids come in, witnessing the power of competition unfold before your eyes. It's an exciting and transparent way to secure the lowest possible energy rates.
Comprehensive Results Analysis: After the auction concludes, we compile the results into a clear, concise report. We'll walk you through the different offers, explaining the terms and conditions of each, and help you determine the best fit for your business needs. It's important to remember that the absolute lowest price isn't always the best overall value, and we're here to guide you through that decision-making process.

The Benefits: Real Savings, Real Transparency

Rock-Bottom Rates: Supplier competition forces prices down to their lowest possible levels.
Complete Transparency: The live auction format eliminates any hidden fees or backroom dealings.
Streamlined Procurement: We handle the entire process, saving you time and effort.
Empowered Decision-Making: You're in control, with clear data to make informed choices.

Who Benefits Most?

Reverse energy auctions are particularly advantageous for businesses with significant energy demands, including:

Manufacturing and Industrial Facilities: Keeping production lines running efficiently requires cost-effective energy.
Commercial Real Estate: Large office buildings, retail centers, and multi-tenant properties have substantial energy needs.
Hospitality: Hotels, casinos, and event venues consume large amounts of power.
Government and Educational Institutions: Schools, universities, and municipalities can stretch their budgets further with competitive energy pricing.
Car Dealerships: Maintaining bright, welcoming showrooms, powering service bays, and operating energy-intensive equipment like paint booths require significant and consistent energy.

Ready to Flip the Script on Your Energy Costs?

If you're ready to experience the power of reverse energy auctions and secure the best possible rates for your business, contact RateWise today. This is a complimentary service we're proud to offer our qualifying clients, and we're confident it can deliver significant savings and a more transparent energy procurement process.