Had a frustrating meeting last week with a manufacturing client. Found $23K in annual savings from switching their Xcel Energy rate schedule from A-2 to A-15, but their controller insists 'we've always been on A-2 and it works fine.' How do you deal with this kind of resistance? The math is clear but they won't budge.
Client Pushback on Recommendations - How Do You Handle It?
Bill, I feel your pain. Sometimes you have to reframe it - instead of 'your current rate is wrong,' try 'your usage patterns have evolved.' Makes them feel smart for growing the business rather than stupid for the original choice. Also, offer to handle the paperwork yourself.
I've started doing 'risk analysis' presentations. Show them what happens if rates increase 5% and they're on the wrong schedule - suddenly that $23K becomes $30K+ in lost savings. Fear of missing out works better than fear of change sometimes.
Margaret makes a good point about future scenarios. I also like to get buy-in by asking 'what would need to be true for this to make sense?' Let them talk through their concerns. Usually it's fear of utility complications or budget timing issues, not the actual recommendation.
Sometimes the real issue is they don't want to admit they were wrong for years. I had success with 'pilot programs' - suggest trying the new rate for 6 months with an easy revert option. Takes the pressure off the decision.
Cheryl, that pilot approach is smart. I've also found success bringing in a utility rep for a three-way meeting. When the utility confirms the savings potential, it carries more weight than just my analysis. Plus it shows I'm not trying to hide anything.
Bobby, I never thought about bringing the utility in. That might work for this client. They seem to trust their Xcel rep more than outside consultants anyway. Worth a shot - thanks for the idea!
One thing that's worked for me is showing competitors' rates. 'Your main competitor is on Schedule A-15 and saving 12% on electricity costs.' Amazing how competitive pressure can overcome inertia when logic fails.
Mitchell, the competitive angle is brilliant but you have to be careful about confidentiality. I've used generic industry benchmarking data instead - 'companies your size in this region typically save 15-20% with this rate change.' Gets the same message across without ethical issues.