Business overheads directly impact every company’s profit margins. Poor analysis and control of these expenses relate to inefficient management. It is possible for a company to bleed out funds in areas where they can significantly cut costs and make savings.
Unfortunately, keeping track of all these expenses is a time-consuming process. However, it is doable and therefore advisable to take time and analyse individual contributors to the business overheads and find specific ways to cut costs without sacrificing quality.
Utility consumption of average businesses
One area every company needs to look into is business utility expenses. On average, small businesses in the UK spend about £3,664 every year on electricity, while large companies spend an average of £6,563 every year.
The question is, is it possible for businesses of all sizes to reduce utility consumption? This is where Utility Comparison steps in. Switching utility providers is not only an option but is highly encouraged if you want to cut utility costs which in turn contributes to lower overhead expenses.
How does utility comparison work?
Utility providers around the country ultimately use the same source for electricity supplied to all their customers. But keep in mind that business utility prices will always differ from domestic electricity prices. The contract you sign with the utility company is also different, and business tariffs do not provide for dual fuel options.
Nevertheless, similar to domestic electricity contracts, business contracts also allow for switching. Not switching providers will always mean you pay higher tariffs upon renewal, and no business should allow this to happen.
Switching utility providers is a simple process. It begins by comparing utility prices from different providers and allowing an expert to handle the switch. Utility comparison websites provide an all-in service to find the best deals for businesses.
How much can you save by switching providers?
The savings will depend on the size of the business. Tariffs for businesses are customised according to their needs which means that the savings also depend on many factors. Nonetheless, it is possible for a company to save as much as £1,000 each year on utility payments.
A study conducted back in 2015 revealed that 40% of businesses at that time had not switched utility providers in five years, which means that these companies were overpaying on their utility expenses. A simple phone call or online request for a utility quote is all you need to get started if you want to find out how much you can save by switching utility providers.
Getting the best price
Utility comparison websites sometimes allow you to complete switching utility providers online, while others require you to phone in. If you want to find the best price for your company, you will need to at least try getting quotes from several comparison services before you contact the provider directly, or have a broker do it for you. It is also possible to haggle down the price of business utility prices, so do not be afraid to put in a little work to reduce your business overheads.