A GOOD DEAL, EVERY TIME
When it comes to haggling, we Brits are pretty reticent, but there’s money to be saved if you persist
M illions of us will go from supermarket to supermarket to save a few pennies on daily food items. But while we’re thrifty shoppers, we are likely to ignore the bigger picture – bills for household essentials such as electricity, gas, home phone, mobile and broadband. With very little effort, you can save hundreds of pounds a year - sometimes you don’t even have to change suppliers – and you won’t have to leave home to do it.
No matter who your supplier or what your deal, the gas and electricity into your home is the same, unlike food where quality can differ.
Phone, mobile and broadband packages vary. But that does not mean you can’t find a better deal for your needs.
The first trick to remember is whatever service you are buying, the supplier wants to keep you. It’s simple economics. Signing you up on day one costs money – advertising or paying a comparison site as well as the expense of issuing contracts.
Suppliers often lose in this first year. It’s the second and subsequent years when they start to profit. Losing you to a rival is the last thing they want. The same also applies to home and car insurance.
They rely on you doing nothing – just over half of all power consumers have stuck with the same company for years.
The second money saving trick is marking renewal dates – a fixed rate for electricity and gas, mobile phone, broadband – in a calendar. Then start to act four weeks ahead.
Equip yourself with knowledge from comparison sites. These may show better deals than you are currently paying because some suppliers cut prices to entice you to their products.
Armed with this information, you should then phone your present supplier and ask what deal they propose to keep your loyalty for another year. The very fact that you have looked at the market means they are more likely to come up with something better – they realise you are a savvy consumer. It’s no different to comparing food prices.
But that’s not the end. Even if the new deal looks good, you might be able to do better by haggling. Brits are bad at this – except when it comes to buying second hand cars.
If your haggling wins, great! But if it does not, then you are no worse off than before. You can still switch to another provider.