UK companies lose billions not researching business costs
Print26 September 2013
The new Intertia Factor Report, released this week by the Post Office International Payments in the UK, has found that companies are wasting billions by failing to research business costs. The research, carried out by Trends Research, shows that SMEs in the UK have wasted £2.64 billion by failing to fully look into company running costs.
The research showed the most common areas where businesses waste money are in failing to research costs such as travel, healthcare and insurance policies and also by failing to use the correct services when carrying out transactions overseas.
When it came to insurance, losses were occurred by failing to research for competitive prices, getting quotes and not changing to a cheaper provider. 8.4% of the 2,500 business surveyed said they wasted under £100 per year, while over half of SMEs said they wasted more than £500 a year. At the higher end, 7.3% of business believed that their losses where in excess of £1,000.
When asked if they shop around before renewing a policy, 33.2% of businesses said they simply automatically use the same provider without any survey of the market. However 38.5% of those surveyed do carry out market research to find a better deal and get a better deal.
The report has found that the areas SMEs are least likely to shop around to find a better deal are: car breakdown cover, mobile phones, private healthcare, foreign currency and office insurance. Companies were found to actively research, car insurance, international payments and hotels or flights to find better deals.
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