Energy Performance Certificates - DEAs are selling themselves short

 



Are Domestic Energy Assessors selling themselves short?

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One of the biggest complaints often voiced by DEAs is the fact that they are “ripped off” by Panel Operators (POs), the companies that advertise to carry out energy assessments and then farm the work out to local DEAs. 

The way it seems to work is the PO will offer the DEA fees as low as £25.00 for an energy performance certificate assessment whilst charging the customer as much as £65.00, a hefty £40.00 profit. What for? After all, the DEA had to pay for their initial training and then keep that training up to date, they have to travel to the assessment at their own expense, pay lodgement fees and actually do the work to produce the final Energy Performance Certificate. After all that effort and expense the PO walks away with the Lion’s share of the money. Surely a case of rip-off Britain? After all, what are the POs doing to justify that mark-up?

Unfortunately it is not that simple. What the POs are actually doing is the work that the DEA either doesn’t want to, or can’t do, and that is actually getting out there and selling their services instead of waiting for the phone to ring.
 
There is a very good parallel in the UK agricultural sector. For years farmers simply sold all of their produce to the supermarkets. This saved them the effort of marketing their own produce, taking it to market and the inevitable wastage that occurs when some of the produce doesn’t sell. In return the supermarket gets to buy the product at a lower price that would have been normal. Seems fair, yet we all know how this story ends. The supermarkets got 98% of the market and then used that dominance to squeeze the farmers’ margins to the point where they were barely breaking even or sometimes losing money on everything that went out the gate. 
 
Smarter farmers soon worked out that they needed to market their own produce at farm shops and farmers markets. Some even went further and started “adding value” to their base product, for example, producing cream, cheese and yoghurt instead of just simply selling their milk. Others decided to address a niche market and produce only organic fruit and vegetables. Some farmers formed communes to lower costs, improve the range of products on offer and a present bigger entity for the supermarkets to deal with.   Today, many of those farmers that chose to do something, invest and take control of their own future are thriving.
 
And it’s the same in the energy assessment industry. POs spend money on building websites, advertising, having staff to pick up the phone when a customer rings and having sales staff to build relationships with estate agents, letting agents and solicitors. These companies have investors and they expect a healthy return. The one way that they can ensure this is by using DEAs who are too lazy or too afraid of actually getting out there in the market-place and selling their wares and are actually prepared to work for £25.00.
 
So what can DEAs do? The answer is copy the farmers. Some might choose to take their own product to market by setting up websites and going direct to the end customer. Others might choose to try building strong relationships with agents and solicitors. Some might club together to pool their resources and offer a “bigger” company feel. Alternatively some might choose to bolt on additional services to maximise their value to their customers. The options are many, varied and not without cost.
 
The only option that is guaranteed not to work is to keep on accepting low fees for your Energy Performance Certificates. This option also has a cost. As the POs get bigger and compete with each other fees will only continue to get lower and many DEAs will be driven out of the industry.  
 
In conclusion it’s no good blaming the POs for ripping DEAs off. There is a market opportunity for them to get in between DEAs and their customers and they are taking it. It is the DEA community that is giving them the opportunity and it is only the DEA community that can take it away from them by reclaiming the customer and not working for ever decreasing fees. 
 
As long as there is money to be made the POs aren’t likely to pack their bags and go away; remember, no turkey votes for Christmas.

 


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