What is Supplier White Labelling and why it might be good for your business
The energy supply market may currently be in a crisis but that doesn’t mean there isn’t opportunities to be had operating within it. We take a look at white labelling and why it could be a good source of revenue for your business.
What is White Labelling?
A white label is a business that does not have an energy supply licence but instead works in partnership with a licensed partner supplier to offer electricity and gas tariffs to customers.
White labelling is a less complex and less expensive way of entering the UK energy supply market when compared to going the full licensed route.
For a company wanting to leverage its existing customer base and improve its product offering white labelling can be a great way to achieve those goals.
White labelling allows a company or organisation to offer energy tariffs to their already established and loyal customers without the need for them to install new systems or the burden of extra regulation. They do this by partnering up with an already existing and fully licensed energy supply company.
It can be an excellent source of additional revenue via payments of commissions to the recruiting entity.
Some good examples of white labels can be seen in many of the nation’s supermarkets. For example, Sainsbury’s offers energy tariffs under its Sainsbury’s Energy label via a partnership with Eon Next. With an already large captive audience, the company can provide the offering along with other services.
The Advantages of White Labelling
There are some distinct advantages to white labelling for businesses. These include;
- Keeps your customers engaged and happy – Your customers are likely already loyal to your brand but could be looking elsewhere for energy services. The months and years it can take to develop your own solution and obtain a supply licence can lead to them seeking alternatives. White labelling allows you to provide a pre-packaged solution that meets their needs.
- Grow revenues and profits – You already have customers that trust you that purchase other products. By offering them competitive energy tariffs you can tap into that customer base and provide more offerings and in turn grow your revenues.
- It saves you time and money – The process to becoming a fully licensed energy supplier is a long one that requires a lot of time and financial investment. White labelling removes these hurdles, allowing you to get to market much quicker and often far more cheaply.
- They allow you to focus on your business’s core competency – Companies wanting to get into the energy retail market often find themselves out of their depth and areas of expertise. Using a white label partner means that all of the knowledge, solutions and skills are at your disposal. This allows you to focus on your core business whilst your partner handles the energy supply side of things.
Looking to enter the UK energy market? Dyball Associates team of energy market consultants can guide you through the steps to get qualified and attain your gas or electricity licence.
Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.
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