Quebecers not getting break
Hydro-Quebec promised to keep rates low
Many years ago I had a boss who said: “If you don’t truly like your customer, you will not have him for long”. And that is the philosophy that Eustace Reeves uses to run a successful business.
He developed that attitude when he was very young while working with his father in their booth at exhibitions and trade shows around P.E.I. In fact, what really pleased him the most was when he heard customers come by and say how they loved their water softener and how it changed their lives for the better.
They would comment on how much less soap they now used, how their skin problems had gone away, and how there were Management Matters
no more white spots around their sink. Some even said it made their eczema go away. Everything was now cleaner. It was through his father’s efforts and the family business that actually gave water conditioning products credibility in .PE.I.
His father started the business when Eustace was 14 years old. After finishing school, he spent some time working in the welding industry, but the call of hearing those happy customers drew him back. He was proud to work with his dad, but after some time, he felt he wanted a more sense of control over his own destiny. Eventually, he went on his own to start Island Softeners Ltd.
He says there are lots of water treatment equipment suppliers on the market of varying qualities. But, no matter the quality, if you service them properly and look after the customer well, you will keep them for life.
It was this attitude that also drove him to understand the actual mechanics of how these machines worked. Instead of just being an equipment or parts replacer, he learned how to strip them down, studied the specifications of each individual component and how they worked, then went on to refurbish them, making them work even more efficiently.
He has had many opportunities to source lower cost products and parts from other vendors which would increase his profit margins, but that would not be in line with his value system or customer service philosophy. It would certainly not be what his customers have come to expect.
By operating in this manner, he is able to guarantee everything he does, which provides a sense of comfort and security for his clients.
Since many water conditioner products last a lifetime, there is not a lot of opportunity for repeat business. Gratefully, he finds that when those customers move, or their children grow up, they go back to him. This way, the business continues to grow.
One of his frustrations is that no matter how much he does to inform people they find it hard to believe that by using a properly working water softener you can reduce you soap usage by as much as 75 to 90 per cent.
Most of his new business is by word-of-mouth and reputation. Nevertheless, he still sets up a booth in at least one trade show every year where he does pick up new customers. Doing this also brings back fond memories of where he got his start in the business.
At this time, he has no exit strategy but considers the possibility that in the future one of his children may be interested to continue the business, capitalizing on the Reeves brand.
My question to all leaders and entrepreneurs: What would your business be like if you were able to keep every customer you ever had?
Quebecers won’t get a break on already low hydroelectricity rates but a massive export deal with Massachusetts will give the public utility flexibility to keep increases below inflation, Hydro-Quebec’s CEO said Friday.
“It relieves some pressure,” Eric Martel said at a news conference. “It gives us a certain flexibility for things to come.”
The biggest export contract in Hydro-Quebec’s history, run by Hydro-Quebec and U.S. partner Eversource Energy, would bring up to 9.45 terawatt hours of electricity per year from Quebec’s hydroelectric plants to Massachusetts.
Hydro-Quebec promised several years ago to keep domestic power rates below inflation and to increase the utility’s profitability.
It kept the rate promise over the last three years with annual increases of 0.7 per cent while the $10-billion deal over 20 years with the New England state will generate higher returns, he told reporters.
Martel wouldn’t provide the rate Massachusetts would pay but said it is above the three cents per kilowatthour cost to produce and transport the energy.
He told reporters Friday that the contract will be profitable, largely because electricity prices are stable and it already has the available production capacity.
That’s good news for all Quebecers because the government will receive a larger dividend from the Crown corporation, added Energy Minister Pierre Moreau.
“Whenever the profit goes up it’s good news for the shareholders, which is the government of Quebec and basically all Quebecers,” he added.
The contract expected to be signed in March could generate up to $500 million in annual revenues for Hydro-Quebec.
In 2016, Hydro-Quebec’s exports represented $803 million of its $2.86-billion profit.
The contract will also help the utility achieve its goal of doubling revenues to about $27 billion by 2030.
Massachusetts officially selected Northern Pass on Thursday out of 46 submissions presented to the state last year, including six by Hydro-Quebec and partners.