Businesses Blind to Value, As Many Urged to Adopt an Eye for a Bargain
Just 42% of enterprises review their suppliers annually, meaning many are failing to take advantage of cheaper alternatives
UK small businesses are being urged to shop around for better deals or miss out on cheaper supply costs, according to a report by Tungsten Network.
The survey of 1,000 business owners revealed that 28% of respondents believed they could have saved between £5,000 and £20,000, and 15% cited potential savings of £50,000 if they had checked the prices of their own suppliers’ competitors.
The potential savings for UK small businesses who have an eye for a bargain amounts to £106bn – when based on the estimation that the average firm could save £19,663 annually.
Just 42% of those surveyed admitted they reviewed their wholesaler annually with only 29% doing so two or three times a year, and just 19% assessing their deal on an ad hoc basis or when they are dissatisfied.
Richard Hurwitz, CEO at Tungsten Network, said:
“If British small businesses could realise even a small percentage of the estimated savings identified in the report, profitability would soar and working capital, as well as cashflow, would be significantly improved, allowing businesses to be more agile and flexible.
“With a clear procurement strategy, the potential savings are considerable and this research just highlights the value of having good market intelligence.”