A property developer recently contacted us about submetering several mixed-use properties. He was surprised to hear that we don’t sell meters as part of our business.
We get it. One-stop shopping for submetering and billing sounds good. It sounds easier. It sounds cheaper.
It isn’t any of those.
What "All-in-One" Submetering Really Means (and Why That Can Seem Appealing)
One-stop shopping is handy. Who wouldn’t rather buzz the kids around one Walmart rather than drag them in and out of a hardware store, a pharmacy, and the grocery store?
The problem is that for all the good stuff Walmart has on its shelves, it – by design – only carries off-the-shelf solutions. No one at Walmart is going to build you a bookshelf that fits that odd corner in your living room or compound the kidney medicine for your aging Fido (the goodest boy). You have to go to a specialist for that.
The same is true of submetering and tenant utility billing. The skills and resources needed to build meter hardware have nothing in common with understanding how to apply your lease terms and rate tariffs to the meter data. Treating the design of your submetering and the content of your billing packages like they're problems you can solve with a kit off the shelf misunderstands (or misrepresents) the complexity of many properties.
That’s why we don’t sell meters. We want your submetering system and billing packages to fit like good athletic wear – supportive in all the right places. So we decided to go deep on the analytical side of submetering and leave the manufacturing to others. As the saying goes, “Jack of all trades, master of none.”
Why “Low Cost” Gets Expensive Fast
As we said at the top, all-in-one submetering isn’t better (or even just “good”), and it isn’t less expensive – not if your facility has any complexity to it.
Why isn't going with a bundled services vendor perfectly good and also cheaper? It comes down to incentive. A bundled vendor is also a proprietary system vendor. That means they’re only motivated to provide good service until the contract is signed. Then you’re locked in, and they can do what they want because they hold all the cards. It’s like you added them to your bank account and now they’re making transfers.
When Bundled Submetering Can Be OK (Simple Electric Billing Only)
There's a time and a place for everything, even all-in-one submeter manufacture and billing. If your property is straightforward and only needs simple electricity tenant utility billing, then a bundled vendor is probably fine. You just need to know the limitations of these services and what your other options are.
Common Claims All-in-One Submetering Vendors Make (And What to Verify)
Lies bundled vendors tell:
- They have “experience in metering and billing for all utility types.” We go into projects after these guys all the time to pick up the pieces, and we only see them measuring electricity.
- They have a “full client success team.” This one’s our favorite. If they have such a big support team, then why doesn’t anyone pick up their phone or answer their emails?
- They are “just as good at billing as at making meters.” Again, fabricating a meter has exactly zero overlap with understanding rate structures and lease terms. The companies that “do it all” are downloading your data, plugging it into Excel, and shipping you the results. There’s no analysis to ensure that those billing totals are accurate or will withstand any scrutiny.
- They “work with existing systems.” Sure, if “existing system” means your building. If you mean your existing submetering system, then no, they don’t. Instead, they rip out your existing submeters, upgrade you to proprietary parts whether you need them or not, and commit you to a 15- to 20-year contract.
The Hidden Cost of Bundled, Proprietary Services: Vendor Lock-In
In every phase of the submetering process – from selection to installation to testing to billing and servicing, the proprietary vendor has their finger on the scale to keep you paying and paying and paying. That’s why we don't use that business model. It isn't designed to benefit the customer at all. What it's designed to do is deliver money from your pocket to theirs.
We don’t hold with treating customers that way. We choose to exist as an independent check and balance that ensures you get accurate readings and billing packages and helps you eliminate any tenant issues related to utilities. If we sold meters, we'd always have to pitch a certain suite of meters. That could lead to putting our finger on the scale when we design a system for you or suggest a replacement. We'd rather think only about what's best for you.
But providing submeter services and accurate tenant billing? That's about evaluating how your components are working and about interpreting building data, lease terms, and rate tariffs.
Specialization is how you get quality you can trust. By focusing on submetering and billing services, we've built repeatable processes, sharper judgment, and better checks to catch problems early. That’s what keeps the data meaningful, the allocations defensible, and the bills aligned to the lease and the tariff.
Bundled vendors can ship bills that look professional. That doesn't make them correct. By not selling meters, we keep our priorities on the customer's needs. By specializing in analysis and billing, we're determined to deliver more than just a piece of paper with numbers on it. Instead, we deliver results in the real world, under scrutiny, month after month.
What to Ask Before You Sign a Billing Contract With Your Meter Manufacturer
- How many people are on their customer success/service team and where are they located?*
- Do they include exceptions analyses in every billing package?
- Are they able to charge each tenant a unique rate, including pro-rating when appropriate?
- What percentage of their billing packages include utility types other than electricity?
*We thought about including "What's their average response time"? when asking about service, but how likely are they to admit their actual times? We know many clients who say these companies never pick up the phone.
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About utiliVisor
Your tenant submetering and energy plant optimization services are an essential part of your operation. You deserve personalized energy insights from a team that knows buildings from the inside out, applies IoT technology and is energized by providing you with accurate data and energy optimization insights. When you need experience, expertise, and service, you need utiliVisor on your side, delivering consistent energy and cost-saving strategies to you. What more can our 45+ years of experience and historical data do for you? Call utiliVisor at 212-260-4800 or visit utilivisor.com
