Completed an audit for a warehouse operation in Cincinnati. Duke Energy Ohio agreed to reclassify the account from Rate GS to Rate GP which reduces the demand charge rate. I calculated the annual savings at $8,400 based on their usage pattern. Client doesn't believe me — says he wants to see the 'actual savings' on his bill before paying my fee. But the rate change just happened and the first corrected bill won't arrive for another month. How do I get paid now?
How do you prove savings to a skeptical client who doesn't trust your numbers?
This is why your audit report needs to include the math. Show the client side by side: here's what you were paying under Rate GS for demand charges, here's what you'll pay under Rate GP, here's the monthly difference. Use their actual billing data, not estimates. If the client can follow the arithmetic from their real bills to the projected savings, most skepticism goes away. I also include the tariff language showing both rate schedules so the client can verify the numbers themselves.
Frank's approach is the standard of professionalism in our field. Your audit report should be detailed enough that the client — or their accountant — can independently verify your savings calculation. Include: the tariff rate under the old schedule, the tariff rate under the new schedule, the client's actual demand and energy usage for each of the 12 prior months, and the calculated difference. When the first corrected bill arrives, the client can compare it against your projection. If your numbers are right, trust is established permanently.
Rebuilt my report with full side-by-side calculations using actual billing data. Client's accountant reviewed it and confirmed my math. Client paid my fee before the first corrected bill even arrived. When the corrected bill did come in it was within $12 of my projection. Now the client calls me her favorite consultant. Detail and transparency were the answer.