SME’s paying too much
Published May 2, 2008 at 2:46 pm · Filed under Comms / IT
SMEs paying too much for telecoms
Nine out of 10 businesses are paying too much for telecoms, gas and electricity, according to Utility Watch, a leading commercial utility procurement and brokerage consultancy.
A survey of 300 organisations conducted in December, before the latest price rises, showed that businesses could reduce telephone costs by 35% and cut gas and electricity bills by 20%.
Researchers found that although most businesses sought to get the best deal from telecoms providers, failure to drill down into the details of line rentals, connection charges, capped calls and minimum call fees meant that they were rarely successful.
Less than 9% of the companies surveyed were aware that independent comparison services were available and that initial cost comparisons were often provided free-of-charge.
Lack of knowledge also affected people’s dealings with gas and electricity suppliers, with 58% of respondents unsure how to make effective comparisons between different suppliers.
Apathy was a problem in the four out of ten businesses (39%) that simply accepted an existing supplier’s terms when they took over new premises. This was a particular problem amongst SMEs that may not have the power to change contracts negotiated by the landlord.
Commenting on the findings, Utility Watch founder Greg Shepherd said: “It is incredible that both commercial and public sector organisations seem not to apply the same approach to utility procurement as they would do in buying IT or manufacturing equipment. In many cases, customers are blinded by contractual complexities or are ignorant of the real pricing structures of utilities and accept what looks good on the surface.”
http://www.utilitywatchuk.co.uk/ 0845 241 2456
