March 23 ,2016 | by Thiago Kiwi

British SMEs save £10,000 by negotiating, according to survey

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Almost half of SMEs in Britain saved £10,000 or less on bills in the last 12 months by negotiating with their suppliers, according to a survey by npower Business.

The survey found that this resulted in Britain’s small businesses making overall savings of £511 million across the sector over the past year.

The research also showed that out of those surveyed, three quarters of SMEs do not negotiate with suppliers, with 70 per cent in particular stating that they do not negotiate with their energy supplier before taking on a contract.

Huge difference

Over 90 per cent of SMEs that negotiate energy contracts with suppliers said that they see the benefits of doing so, whilst 59 per cent said that they felt that their successful business negotiations were a result of being prepared and doing research beforehand.

Over 45 per cent of SMEs surveyed said that they were able to get a good deal as a result of being flexible.

Tim Campbell, a businessman and winner of The Apprentice, said that throughout his career, he has always believed in “the power of negotiation” and that it is a “vital skill that can make a huge difference to your business costs and importantly your profits.”

“I am thrilled to be fronting this campaign to get across the message that polite, well-researched negotiation can help you get the perfect deal. Therefore, I’d recommend to pick up the phone today, and start negotiating,” he said.

Missed opportunity

npower Business head Philip Scholes commented on the findings of the survey, stating that it shows that businesses across the UK are “reaping the dividends of negotiating their supplier contract.”

“However, not all firms are entering discussions with their provider, which could prove to be a missed opportunity in the long term,” he said. 

Thiago is the LSBF Blog Editor who manages news and features content on the site, and writes about business, finance, technology, education and careers.

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