SMEs leading the way on cost cutting
SMEs are more cost-conscious and spend more time comparing prices than larger businesses, according to research from Applegate PRO.
The research, which surveyed 726 SMEs, found that they are more careful with their spending, enabling them to make considerable savings.
According to the survey, between 50 and 100 per cent of SMEs are savvier than larger businesses, as they take the time to shop around and compare prices.
Smaller companies spend more time trying to find the best prices for equipment, with 79 per cent shopping around for printer cartridges compared to 33 per cent of medium-sized businesses. The same also applied to batteries, with 27 per cent of small businesses shopping around compared to 11 per cent of larger companies.
The research also found that as companies grow larger, they are less likely to be careful with their spending.
Applegate Marketplace CEO Stuart Brocklehurst commented on the latest findings, stating that managing costs is “essential” in a volatile market for the majority of UK businesses.
He stated that it is a concern that small businesses become less savvy as their business grows, adding that their patience to obtain the best value deteriorates as the business expands and that maverick spending can increase.
“Larger businesses have procurement teams that handle purchasing, but for smaller and medium sized firms, many have to weigh up the value from shopping around versus the time and cost involved in doing this,” he said.