Wendell T. from Billings MT. Thinking about offering free sample audits to break into the commercial market here. Would analyze 12 months of bills and provide summary of findings without detailed recommendations. Anyone tried this approach? Did it lead to paid engagements or just give away too much value?
Free sample audit as loss leader - worth it?
Val M. in Birmingham AL. I tried free sample audits for about 6 months in 2023. Mixed results - got 3 paying clients from 12 free audits. The key is setting clear boundaries on what the free audit includes. I only provided high-level findings, no implementation roadmap.
Dan K. from Green Bay WI. My approach is "diagnostic review" instead of "free audit." Sounds more professional and sets expectation that it's preliminary. Found $47,000 in potential savings at a paper mill here - they paid for full audit after seeing the diagnostic results.
Bernard P. in Roanoke VA. Be careful with free audits - some prospects will shop your findings to other auditors or try to implement recommendations themselves. I require signed agreement that free analysis is confidential and for evaluation purposes only.
Randy Dawson here. Bernard raises important point about protecting your work. Free diagnostics can work but structure them as "qualification assessments" - just enough detail to prove you know what you're doing without giving away your methodology. Focus on identifying opportunities, not solutions.
Pete A. from Savannah GA. What do you include in the free diagnostic? I've been showing rate schedule analysis and basic demand pattern review but nothing about power factor correction or specific equipment recommendations. Wondering if that's enough to demonstrate value.
Pete, I show them their current effective rate per kWh versus what they could be paying on optimal rate schedule. Easy for them to understand and calculate potential savings. For that paper mill I mentioned, they were on Schedule LGS when they qualified for Schedule IS - $3,200 monthly difference.
Beth H. in Jacksonville FL. How long do you spend on free diagnostics? I'm worried about time investment versus return. Currently takes me about 6 hours to do proper analysis of 12 months of bills for medium-sized facility.
Beth, that's my concern too. 6 hours is a lot to give away free. Dan, how long does your diagnostic review typically take? Trying to figure out the sweet spot between showing value and protecting time.
Wendell, I keep diagnostics to 2-3 hours max. Only review 6 months of recent bills, focus on obvious issues like wrong rate schedule or consistent power factor penalties. Deeper dive requires paid engagement.
Marcus W. from Norfolk VA. Alternative approach - charge nominal fee like $500 for "preliminary assessment" with credit toward full audit if they hire you. Eliminates tire kickers but still low barrier to entry. Working well for me with Virginia Natural Gas and Dominion Energy accounts.
Faye H. in Lynchburg VA. Marcus, I like that approach better than completely free. Shows they're serious while still being affordable. Do you provide same level of analysis for the $500 as others do for free diagnostic?
Faye, yes - the $500 gets them 12-month bill analysis, rate schedule optimization review, and preliminary demand management recommendations. Much more thorough than free diagnostic but stops short of detailed implementation plan.
Going back to original question - I'd say free diagnostics are worth it if you're breaking into new market or building credibility. Once established, transition to paid preliminary assessments like Marcus suggests. Best of both worlds.
Phyllis G. from Macon GA. Been lurking on this thread - great insights everyone. Just wanted to add that I always follow up free diagnostics with specific timeline for decision. "These rate optimization opportunities are available now, but utility rate schedules can change. When would you like to move forward?" Creates urgency.