Switching suppliers will save billions

16 November 2010

16 November 2010 | Helen Gilbert

Small businesses could save a staggering £1.68 billion just by changing suppliers over the next year.

Of the 502 UK companies polled by price comparison service Make It Cheaper, 45 per cent said they would change suppliers in the next 12 months because of the government’s spending cuts and the impact it will have on their business.

This result came despite the fact that more than half (54 per cent) said they had not changed suppliers in the past three years.

Areas where businesses said they would change vendors:

  • Over half (56 per cent) said they plan to use a different mobile phone provider, which would reap savings of £558 million in a year.
  • Some 44 per cent of SMEs surveyed, said they would shop around for different banking providers – which could result in £257 million being saved.
  • 55 per cent of small businesses plan to switch broadband suppliers, which could account for £201 million in 2011. 
  • And, 45 per cent said they planned to switch electricity suppliers – a UK saving of £382 million.

Richard Coltart, owner of the Manor Arms Pub in Streatham, south London said: “We’re in the process of reviewing all our overheads and our biggest saving will be £10,000 off next year’s electricity bill. We’d have to take £60,000 over the bar to make that kind of money in profit, so we’re thrilled.”

Accountancy, stationery, fixed telecoms, HR/payroll and insurance were also cited as areas where savings could be made.

Jonathan Elliott, Make it Cheaper managing director said: “Finally small businesses are waking up to the fact they have the right to a better deal from suppliers in everything from banking to energy.

“Thanks to a challenging economic environment everyone’s looking inwardly at how they run their business, what they are paying, who’s supplying them and what they can get for less. This is big news for supplier and they better get ready to start negotiating.”

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