Opus Energy, the business only energy supplier have laid bare the experience of SMEs in the energy market through the publication of their ‘Business Boost’ report.
56% of the 500 SMEs surveyed believed the long-term future for their business was optimistic
But to achieve this level of hope 71% of SMEs were “time pressured” and needed to cover multiple roles in the organisation to get things done
And 57% would admitted that they would welcome a boost to help their businesses survive and grow
Yet the survey also found that the single biggest positive boost that could be delivered to help a business’ cash-flow and bottom line growth was ignored by the vast majority of SMEs:
Fully 81% of SMEs surveyed admitted that they failed to shop around when it came to their energy contract renewal.
Given the average saving for our customers in 2014 was £1,836 that really is an oversight of massive proportions.
Indeed Opus tell us that almost 12% of SMEs have never switched suppliers and so are likely on hugely inflated prices against which the potential savings would be even larger. In addition 36% of SMEs haven’t switched in the last 3 years leading to them losing out considerably in an ever evolving competitive market.
And fully 24% are sitting on out of contract rates which typically are 40-50% higher than the standard renewal rates of a supplier (which in turn are 20-30% higher than the best market rates).
As a result the savings really do start to stack up.
Just 17% of the SMEs surveyed believed that lower running costs would be the biggest boost for their business in 2015, clearly unaware of the ease with which one of the major costs, after stock and staff, to a business, their energy supply, can be minimised.
Indeed the 15% of SMEs who were looking to increased access to finance as their big contributory boost in 2015 would also hugely benefit from such a reduction in costs to lower the financial support needed for their business.
The message from Opus Energy’s Business Boost Report is clear:
The boost that is desired by the majority of SMEs in 2015 to aid their growth is available to them simply by engaging in the energy market in a more appropriate way.
The easiest way to make your business more competitive? Our customers would certainly attest to that.