SME decision makers are savvier shoppers than their counterparts in larger companies according to new research by Applegate PRO.
Small and medium-sized businesses are actually between 50% and 100% likely to compare the prices on their everyday purchases than their larger competitors – could this be to do with a restricted cash flow compared to an unlimited one?
Although SMEs are taking valuable time contrasting costs for their everyday items it has been proven in a more detailed evaluation that they are actually saving significant amounts. 79% of smaller businesses looked around for the best prices for their ink cartridges whereas only 33% of medium-sized businesses compared.
CEO of Applegate Marketplace, Stuart Brocklehurst has commented;
“In a volatile or uncertain market, managing costs is essential for the majority of UK businesses. It is a concern that small businesses seem to be growing out of savvy buying as their business grows – rather than growing into it. As these businesses grow, patience to obtain the best value deteriorates and maverick spend 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.”
The government’s new policy to spend more with SMEs rather than just the larger companies has provided a boost to their finances. During 2014 and 2015 it spent over a quarter of the budget on SME contracts.
Head of Businesscomparison.com, Philip Brennan says small business owners need to be on the ball when it comes to spending;
“As head of a comparison site for SMEs I know first-hand how important it is for them to compare all the costs that they can especially for everyday essentials such as ink cartridges! But I also think it is significantly important for them to compare the best options available in the alternative finance market, their business current accounts and their energy and insurance tariffs.
“So many SMEs are only just becoming aware of what alternative options are actually out there so they also need to know where to go to get the best deals that will not end up costing them double than the amount borrowed!”