California Energy Presentation

California Commercial Energy Training

A HIGHER WAY OF LIFE

Success Opportunity Lifestyle Freedom


What is Deregulation?

Customers in many areas now have the right to choose which energy company the obtain their gas from.

Zurvita has chosen Tiger Natural Gas to partner with in PG&E, SoCal and SDG&E areas.

Electricity is planned for deregulation in July of 2010.


What is Deregulation?

Customers now have the right to choose their own provider

Generation

Does NOT Change

Distribution

Does NOT Change

Contracted Retail Energy

Provider


What is the Price?

PG&E .45 per dekatherm. This is the price that goes on line 4 of the contract

SoCal (aka The Energy Company)

.25 per dekatherm. This is the price that goes on line 4 of the contract

SDG&E .25 per dekatherm. This is the price that goes on line 4 of the contract.


How Do I Get Paid – in Dekatherms?

Dekatherms Zurvita Commission

Zurvita Rep Commission

PG&E .45 per dekatherm. This is the price that goes on line 4 of the contract

1/3 of $ .45Estimated around .15 (fifteen cents) per dekatherm

30% of the Zurvita Commission. Estimated around .045 (four and one half cents) per dekatherm.

SoCal (aka The Energy Company)

.25 per dekatherm. This is the price that goes on line 4 of the contract

1/3 of $ .25Estimated around .08 (eight cents) per dekatherm

30% of the Zurvita Commission. Estimated around .025 (two and one half cents) per dekatherm.

SDG&E .25 per dekatherm. This is the price that goes on line 4 of the contract.

1/3 of $ .25Estimated around .08 (eight cents) per dekatherm

30% of the Zurvita Commission. Estimated around .025 (two and one half cents) per dekatherm.


How Do I Get Paid – in Therms?

Therms Zurvita Commission

Zurvita Rep Commission

PG&E .045 per therm. This is the price that goes on line 4 of the contract

1/3 of $ 0.045Estimated around .015 (fifteen cents) per therm

30% of the Zurvita Commission. Estimated around .0045 (cents) per therm.

SoCal (aka The Energy Company

.025 per therm. This is the price that goes on line 4 of the contract

1/3 of $ .025Estimated around .08 (eight cents) per therm


SDG&E .025 per therm. This is the price that goes on line 4 of the contract.

1/3 of $ .025Estimated around .08 (eight cents) per therm



Terminology

• BTU (British Thermal Unit) A measurement of heat. One BTU is equal to the amount of heat required to raise a pound of water by one degree Fahrenheit • Therm (th) A unit of heat equivalent to 100,000 BTUs • Dekatherm (Dth) Equal to 10 therms, 1,000,000 BTUs, or 1 MMBTU.

• On line 4 of all of the contracts you’ll see pricing listed as Dekatherms…or… MMBtus…it’s the same thing just different industry terminology.

• MM is one million• BTUs = British Thermal Units • Thus on the contract you see MMBTUs…• To convert:

• Dekatherms to Therms - multiply by 10• Therms to Dekatherms - divide by 10

Conversion of Dekatherms to Therms


When do I get paid?

Typically it will take around 90+ days to get paid. Sometimes it may take a bit longer depending on when the customer pays their bill.

January February March April

Contract is signed and customer enrolled.

Customer uses energy for 1 month.

• Bill is sent out around the 15th

• Customer Pays bill ‘on time’• Energy Company pays commission to Zurvita. These are typically sent from the energy company to Zurvita on the last day of the month.

• Zurvita Calculates all commissions and pays Zurvita Reps on the 15th.


Where do I get daily pricing?

Step 1 Step 2

Email [email protected]. Ask Candice Jones to add you to the daily pricing matrix.

Each Morning you will receive the daily pricing matrix with the contract for your area and the price associated with that contract.

If you have an email account from:

• AOL, MSN, Yahoo, Hotmail or other obscure domains, YOU MUST add Candice Jones email to your address book or friends list. Otherwise it may be blocked as spam. • If you have not received her emails you should check your spam box.


How do I Calculate Customer Savings?

1. A Customer Savings Analysis will be sent to you each month. It looks like this:



Each area (PG&E etc) will have a different sheet….see each analysis sheet for each area.



Each Savings Analysis has been converted to THERMS so you merely take your customers gas bill…find the actual therms and put the data in this savings analysis form under the VOLUME column. See below: I have put 3,500 therms in the form. However when you get the form each month it will be blank. Enter your customers actual data.



You’ll notice that the rest of the data is automatically entered for you.

Some months may not save your customer money. This is why we must show 2, 3 or more years savings analysis.



Here is a one month analysis for SDG&E. As you can see..Tiger did NOT save the customer anything for one months worth of data.



Here is one year analysis for SDG&E.

As you can see..Tiger did NOT save the customer anything for one years worth of data.



Here is three years analysis for SDG&E. I suggest you put in actual usage for three years. Ask your customer for three years worth of gas bills and enter the data from the bills. As you can see..Tiger DID save the customer over the historical usage.



Doing this is much easier that trying to read the bills. It much to complicated to try to teach people how to read the bills. Typically the numbers wont match what we are trying to do…as we have found out…due to the secrecy of the Utility.

Here’s why…see the red circle. That’s the Index price PLUS the Tiger price of .025 per therm….or .25 per DEKATHERM.



To calculate the price…take the price listed below…deduct Tiger’s price of .025 per therm (because this form is in therms)…you get .4982 minus Tigers .025 = .4732 as the Index price. That changes every month.



You will receive this chart or savings analysis each month. I will be sending out the new ones for December in a few days. January’s is not out yet. When I get it I’ll send it out.

Just remember that each Area: PG&E, SoCal and SDG&E all have a different one. They will be named as such when we email them out each month.

Remember: the Index is a variable rate…our adder isn’t. But the customer will still see a rise or fall in their rate each month.



For selling I would tell your customers that switched and lost money last year that they bailed far too soon before the savings could be experienced.

I also wouldn’t sell this way showing customers the analysis. It takes too long and complicates the deal.

I just say…I can save you x% (depending on where you are) over what you are paying now if you are willing to withstand the ups and downs of the gas market. Historically the rates speak for themselves…and show them the rates on the chart…I wouldn’t run the numbers….and then just do theTPV and move on.


Successful People in Zurvita

I call, I never go see anyone. I never tell them I’m with Zurvita or Tiger. I just ask if they want to save on their bill. - Vicky

Vicky actually signed up 9 accounts the week of January 4th, 2010. So far no one has beat her.

I just walk in and tell them to give me their bill. I walk out to my car, fill out the contract, walk back in and get them to sign it if they want to save money. They usually do. -Forrest

Forrest has 8 accounts since we started selling in California.

I say follow them. Make it simple..don’t complicate it.


The Process

The Manual Process

1. Get your client to fill out the contract and fax to 214.723.5339.

2. That’s it.

TPV Process (third party verification)

1.Either call this number and hand the phone to your client…or, if you are calling from your office, call the number and do a 3 way with your client.

773-989-97581.They TPV will ask a number of questions similar to those on the contract.

2.That’s it.


TPV Number

773-989-9758


The Bidding Process

For accounts over 10,000 dekatherms contact Barbara Warmack.

Barbara Warmack 352-217-7381


Contracts


PG&E Contract


PG&E Contract


SDG&E Contract


SDG&E Contract


SDG&E Contract


SoCal (The Gas Company) Contract






The Sales Process

Who do you know that?...

• owns a hair salon?• is in pharmaceuticals?• owns a franchise?• is a mechanic?• is an executive?• is a manager?• is a pastor?• is in manufacturing?• owns an technology firm?• works for a Fortune 1000?• is in the restaurant business?• is well connected in the business community?

Getting Your Foot In The Door

• Hot Market• Warm Market• Cold Calls


The Script – Phone or In Person

• May I speak to the person who handles your gas / electric bills?• Hi Mark, I was referred to you as the person that handles your utility bills. Is that correct? • Information was sent to you letting you know commercial accounts are entitled to lower rates on your gas supply charges, typically 8-12% through the energy program with Tiger Natural Gas. • Since the program was approved through the State of California, there are no fees to participate in the program. • Would you be interested in taking advantage of this program and lowering your gas bill?• I need to confirm the billing address and number of accounts. • How many accounts do you have? _____ • What is your billing address? __________________________________________• All of your services will remain the same. The energy company will continue to read and maintain your meters. If you has a gas leak or other problems you will still call your gas company.


The Script – Continued

• The only difference is that your supply charges will be shown on the billing from your energy company. • I need to give you my contact information so you will know whom you spoke to today. My name is _____________ and my number is xxx-xxx-xxxx. • For your protection, what we do now is call a voice automated verification which will confirm what I said to you is true and correct and that I collected the correct information for your new rate. Please hold an I will be right back with the verification person on the line. Or you can call ___________________

• Your verification is complete. Once again you will receive confirmation notice in the mail within 7 to 14 business days.

• If you have any questions or if I can be of service in any other way please contact me. Thank you.


The Psychology of Selling

• Don’t Show Up and Throw Up• Do Ask Open Ended Questions:

• Don’t ask yes or no questions. • Don’t ask; Would you like to get a quote?

• Do Ask questions that get the customer to talk – get them to say yes to simple questions or statements.

• Tell me about how you use your energy• Wouldn’t you agree that saving money is just as important to your business as creating revenue?

• Do Give them two options that move them in a positive direction• Would you like to get started now or next month? • Do you want to switch all of your meters or just the one?



90% of Sales People fail to do this one thing.



90% of Sales People fail to do this one thing.

Ask to earn their business.



Don’t ask anyone to sign anything.



Don’t ask anyone to sign anything.

Instead, ask your new customer for their autograph. “If you’ll just autograph this”

If conducing TPV, ask their permission:

“Do I have your permission to start saving you money today?”


Overcoming Objections

Top 4 Objections

1.I don’t have the time2.I need to think about it3.I don’t know who you are4.I already get a great rate / I already use someone



Top 4 Objections

1.I don’t have the time

•Get their permission to call back at a specific time and date.

•Don’t just say ok I’ll call you back.

•Get them to confirm your calendar with theirs.



Top 4 Objections

1.I don’t have the time2.I need to think about it3.I don’t know who you are4.I already get a great rate / I already use someon

Ask:

What exactly are you going to think about? Help them by answering their questions.

If it’s a timing issue see objection 1.



Top 4 Objections


Explain to them:

•Who you are•Who Tiger is and their historical rates. (website)•Tiger’s BBB rating www.tngbbb.com



Top 4 Objections


Ask:

That’s great. That’s why I’m here, but doesn’t it make good business sense to at least take a look to see if we can put more money back in your pocket with a great rate?


Practice

• Small Accounts• People you know• Memorize your pitch – no canned speech• State Benefits not features


Sell Savings Not Cost


Questions / Information

•


ENERGY TEST


Contact List

Paper Contracts or Questions: Candice Jones [email protected] fax: 214.723.5339

Large Accounts: Reserved for 10,000 dekatherms annually or greater. Barbara Warmack [email protected]

TPV (third party verification): 773-989-9758

Points or other Zurvita Rep Help: [email protected]

California Energy Presentation

Business