If you’re running a retail store and wondering why your energy bills seem to creep up every quarter, you’re not alone. Many small and mid-sized retailers accept their energy contracts as a fixed cost—just part of doing business. But here’s the thing: it doesn’t have to be. One underrated but powerful way to control costs is through energy tendering. Yes, it sounds like something out of a government procurement handbook, but it’s one of the most effective tools retailers have to reduce overheads—without cutting back on lighting, air-con, or comfort.
Can energy tendering help retailers save money?
Yes. Energy tendering allows retail businesses to compare energy contracts and negotiate lower rates with suppliers. For multi-site retailers or those on legacy contracts, the savings can be significant—up to 20% annually in some cases. More importantly, it gives control back to business owners.
What is energy tendering in plain English?
Energy tendering is the process of shopping around for the best electricity or gas deal for your business. Think of it like comparing phone plans, but for your store’s power usage. Rather than sticking with your current provider, you—or an energy broker acting on your behalf—invite multiple energy suppliers to submit their best price for your needs. You compare the offers, choose the most competitive one, and lock in that rate.
Sounds simple, right? It is. But it’s surprising how many retailers miss out on this opportunity simply because they don’t realise they can negotiate—or assume it’s only for big players.
Why should small retailers care about tendering?
Let’s be blunt. Margins in retail are tight. Rent, staffing, stock, marketing—it all adds up. And unlike other costs, energy bills often feel non-negotiable. That’s where tendering flips the script.
A few reasons to care:
- Electricity is one of the top 5 expenses for most physical retail outlets, especially those with climate control or refrigeration.
- Market prices fluctuate. If your contract hasn’t been reviewed in years, chances are you’re overpaying.
- Suppliers want your business. Especially in competitive regions, retailers have more power than they realise.
Even small stores—corner shops, boutiques, salons—can benefit from switching suppliers or renegotiating existing terms.
How much can you save with energy tendering?
While there’s no one-size-fits-all answer, savings of 10–20% annually aren’t uncommon. Larger or multi-site retail chains often see even bigger wins.
Here’s a quick example. A local pet supply store in regional NSW was spending around $1,100 per month on electricity. After energy tendering, they secured a new deal with a fixed rate that saved them just under $2,000 a year. That’s enough to cover a month’s rent—or reinvest in digital marketing.
The best part? There was no disruption to their service. Same power lines, same reliability—just a cheaper deal.
What’s involved in the process?
Most of the legwork is handled by energy consultants or procurement platforms, but here’s what’s typically involved:
- Energy usage audit – They’ll look at your previous bills to understand your usage patterns.
- Request for proposals (RFP) – Multiple energy retailers are invited to submit offers.
- Offer comparison – Rates, contract lengths, green energy options, and other terms are reviewed.
- Contract negotiation – A preferred offer is selected and locked in.
- Ongoing monitoring – Some providers track future savings opportunities.
And yes, many consultants offer this service at no upfront cost—they’re paid by the supplier you choose (think of it like a mortgage broker for energy).
Isn’t this just for big retail chains?
Not at all. That’s one of the biggest myths in the energy space. While larger businesses naturally have more leverage, many smaller retailers qualify for competitive energy tenders—especially if they’re spending more than $500/month or operating in areas with multiple suppliers.
In fact, some of the biggest wins come from smaller players who’ve unknowingly been locked into outdated tariffs for years. Anyone who’s run a shop knows how fast those bills rack up. Fixing that starts with visibility and options—which is exactly what energy tendering provides.
How does this help reduce retail store energy bills long term?
Tendering is more than a one-off savings hack. It’s part of a broader strategy to take control of your operating costs.
Here’s how:
- Transparency – You see who’s charging what and why.
- Leverage – Suppliers know you’re comparing offers, which incentivises sharper deals.
- Budget certainty – Many tenders involve fixed-rate contracts, shielding you from price hikes.
- Sustainability options – You can choose suppliers with better emissions profiles if that aligns with your brand.
In short, you’re not at the mercy of market rates or inertia anymore. You’re in the driver’s seat.
What should retailers look for in a tender?
If you’re going down this road, here are a few things to keep an eye on:
- Contract length – Some suppliers offer great rates but lock you in for 3+ years.
- Hidden fees – Watch for network charges or metering costs not included in the quote.
- Green energy options – Can you choose a renewable-heavy mix?
- Exit clauses – Life changes. Make sure you’re not penalised unfairly for early exits.
Tip: A good broker will walk you through these and explain them in plain language.
Why now is a smart time to consider it
Energy markets have seen wild fluctuations in recent years—especially post-pandemic. If you signed your current deal in 2020 or earlier, you may be missing out on better rates that have since emerged. With inflation squeezing every dollar, energy tendering offers one of the few low-effort, high-return options to improve your bottom line—without cutting corners.
Even more compelling? There’s growing pressure for retailers to decarbonise. Choosing energy-efficient contracts or renewable suppliers through tendering can also improve your ESG profile—a plus with investors and eco-conscious customers.
FAQ: Quick answers for busy store owners
Do I need to change energy infrastructure to switch suppliers?
Nope. The wires, poles, and meters stay the same—it’s just the billing and rates that change.
Is it worth it for single-location stores?
Yes—especially if your monthly bill is $500 or more. That’s enough to attract decent supplier interest.
Can I switch mid-contract?
Sometimes. It depends on your current terms. But you can always start preparing for your next contract renewal window.
Final thoughts
For retail store owners, energy tendering might not be the flashiest business decision—but it could be one of the most quietly impactful. In a landscape where every cent counts, it offers a rare mix of control, transparency, and savings. And while not every tender results in earth-shattering discounts, the process itself is empowering.
After all, wouldn’t it be nice to open your next bill and not feel like you’ve been caught in a storm surge?
If your goal is to reduce retail store energy bills, energy tendering is a smart, scalable place to start—no spreadsheets required.