Bulk buying and economies of scale: why bigger is better for strata

Energy is one of the largest ongoing costs for strata buildings. Many committees assume that each site needs its own contract, but this fragmented approach often leaves money on the table. Bulk buying changes the game by aggregating demand across multiple buildings and presenting it to the market as one high-value portfolio. The result? Sharper rates, simpler admin, and long-term savings. 

Why bulk buying works for strata

Bulk buying, also known as group procurement or aggregated energy purchasing, works because retailers compete harder for larger customers. Instead of treating each building or meter as a small, disconnected account, the tender positions the entire strata portfolio as one significant load. This creates leverage in three key ways: 

1. Stronger negotiating power

A retailer will sharpen pricing for a portfolio consuming 5 GWh per year
compared to a single building using 200 MWh. The bigger the load, the more competitive the offers.| 

2. Reduced administrative cost for retailers

Managing 20 small accounts separately costs a retailer more than managing one bundled agreement. Retailers reward the reduced admin burden with better rates. 

3. Access to better market products

Bulk tenders can unlock wholesale-style contracts, multi-site discounts, and more flexible contract terms that smaller customers typically cannot access. 

Why it’s better than going alone

For strata managers and committees, bulk buying offers advantages far beyond the rates: 

• Consistency: All sites aligned under one agreement mean no site accidentally falls onto expensive default tariffs. 

• Efficiency: One contract, one renewal cycle, one point of contact reduces admin. 

• Transparency: A formal tender process proves to owners that the most competitive deal was secured, not just “whoever the manager called.” 

• Future-ready: Sites can be added or removed with ease, making it simple to adapt to new builds, sold lots, or emerging needs such as EV charging and embedded networks. 

What you could save 

The level of savings from bulk buying varies, but the opportunities are significant: 

• Previously tendered sites: Savings may be smaller but still competitive. 

• Against default tariffs: The difference can be dramatic, sometimes hundreds of thousands of dollars across a portfolio. 

• First-time tenders: If a building has never been through a tender before, savings can be substantial. 

• State variations and timing: Market conditions and state regulations also impact outcomes, which is why expert timing and management are essential. 

The takeaway

Bulk buying delivers economies of scale because: 

• Bigger volume means better rates 

• Simpler admin means discounts from retailers 

• Stronger bargaining power means better contract terms 

For strata, it adds up to lower levies for owners, less admin for managers, and stronger protection against energy price volatility. 

How SES can help you unlock the benefits of bulk billing for your energy

With decades of experience across energy retail and strata management Strata Energy Services are experts in bulk billing and have used it to save their clients more than
$21 million in energy costs since 2018. 

Their experts don’t stop at the energy tender. Once they’ve secured your energy contract via their free tender service, their post-tender care kicks in, with a dedicated team of Account Managers who work tirelessly throughout your contract. They take the toil out of multi-site energy management, saving their clients hundreds of head-hours (and grey hairs) every year. 

If you’d like to chat about your energy contract, simply leave your details and an SES Energy Expert will call you back promptly.