Choosing Energy Contracts for Your Beauty Salon

As a Beauty Salon owner, you have many things to manage to make sure that your business runs perfectly. The total operational costs of your business have two main components: labor costs and energy costs. The cost of energy is the second-largest contributor.

Your energy is supplied by the local utility provider which might be your default provider but you must get off from their network because they might be charging you more than other utility providers. The local utility provider’s rates fluctuate every month and you can become a victim of a sudden price increase by them. The local utility provider also has non-flexible terms and conditions. So the first step would be to get off of their grid.

The next step is to get an energy contract that fulfills your energy requirement. These are the different types of energy contracts available for commercial businesses:

beauty salon

Fixed-Rate Energy Contracts: 

The fixed-rate contracts have a locked price for the energy supply. The prices are not affected by market demand and supply which means the per kilowatt-hour rate remains the same. They provide certainty to business owners and also help them to keep their financial goals in check. The only drawback of these contracts is that once you have signed the contract you cannot leave it early without paying a hefty exit fee and if the prices go down you will not be able to get the lower ones. 

Variable Rate Energy Contracts: 

They lie on the opposite spectrum of fixed-rate contracts because they provide the always-changing market rates and are a better option than fixed contracts. The variable prices fluctuate but they can see a huge blowout if demand increases suddenly or if a catastrophe strikes. Your beauty salon should choose this contract if your region/ area is not prone to energy market volatility. 

Fixed-rate and Variable Energy Contracts:

These contracts include the features of both fixed-rate and variable contracts. The fixed-rate period is kept in between variable pricing periods so the price is fixed when the market experiences fluctuations in pricing. This way businesses do not have to pay the same price in the offseason when they have a low influx of customers.  Since a beauty salon is open all year round it is recommended for you to avoid this type of contract.

Before you open your beauty salon, consider these tips for choosing between the energy contracts available for your business.

Hire An Energy Procurement Firm

An energy procurement firm provides you with consultancy and expertise to choose the best possible energy supplier and energy rates. They will provide you with information and stats about the current market trends and assess your business’s energy requirements. This way you will be able to make a more informed decision. 

Depending upon your intensity of work they might recommend you to install an eco-friendly alternative at your premises. This way you will be better prepared for carbon-neutral future policy.


Utility Bidder is an energy procurement firm that specializes in finding the best rates for its clients. They will make sure that the advice offered by them is unbiased and will help your beauty salon achieve its goals. You can visit their website to find out more about their services:

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