Guide to saving £s on contract renewals

ChristineLouise

Not sure if this is the right thread but in the company I work for I negotiate all the contracts at renewal. From an accountant here is what I have found when it comes to saving money on renewals....
During my first year at my current employer I slashed overhead costs by £6K, simply by getting better deals on each contract that came up for renewal - including cutting the electricity contract by 30% AND staying with the same supplier (British Gas - a £1000 annual saving). Since then on every renewal I've kept prices competitive.
Don't just roll over and renew when the contract is up. Be prepared to sit down for an afternoon with access to emails, put the kettle on and make some phone calls... Whether it be gas / electric / phone line / broadband or any other contract the same principles apply...
1) Call your existing supplier (some contracts like gas / electric you have to give 30 days notice - bear this in mind) make the call to discuss renewals (If you have to give 30 days notice then prior to the 30 day window please!) Tell them you want to discuss renewals and let them know your shopping around. Do not agree to anything!
2) Call other suppliers - tell them what your current supplier is offering on renewal - most will beat this in the hopes of new business. ASK THEM TO EMAIL QUOTES - this is important - if you have a quote in writing it stands much more ground as its proof you've been offered certain deals. Be prepared to get a few calls that day from all the companies you've spoken to trying to find out if your going to sign. Also be prepared to email quotes to other suppliers as proof. Repeat the process until you get the lowest offer.
3) Make sure you damn well ask about ALL charges. Sometimes companies sneak little charges in to boost prices but don't tell you about those as they are not the main part of the contract - ASK AND GET EMAILED AS A QUOTE ALL CHARGES. Ask them via email "Are there any other charges I need to be aware of or will be charged - anything at all?" When considering a contract you need to look overall at EVERY cost. Ie: a franking machine rental is not just the monthly outlay but the ink plus the cost of topping up the machine with credit (yes they charge for that!) plus the £60 fee that is not advised but charged by Royal Mail every year when the rates change to update the machine (ok its a business expense but the same principle applies to any other renewal). Look at the full picture, and use all the costs to further argue your case as to whether said fantastic deal actually saves you money or not. By looking at the whole costs over the 1 or 2 year deal you can then see what it costs you overall - not just the rental - and use that to negotiate actually how much of a saving your really making - not just the figures the sales person claims you will be saving (the 2 are very different!) If you get all costs emailed and they later make a mistake and bill you wrongly - its much easier with an email quote to get your money back - this does happen - and this is why I get all prices quoted and agreed in principle by email first.
4) Beware of b*llsh*t. I am tired of getting calls at 4pm offering a "great deal just agreed with my supervisor - but its only valid today so we need you to agree today - we cant guarantee you'll get this same deal tomorrow" scenario - this trick is used countless times when companies know you are shopping around to try to coerce you into signing today and prevent you talking to the competition.... absolute bull... Just say you are interested in the offer and need to first consider the terms and conditions / discuss with your partner and ask for them to be emailed over (this shows them you are interested in signing the deal) and ask for them to give you time and hold the deal so you can actually read through the terms. WORKS EVERY TIME! Besides if a company inst prepared to give you time to consider the terms and conditions - are they really worth your time anyway?
5) Once you are down to your lowest quote call your current supplier - tell them you want to cancel as you've been offered a much better deal. They will ask what the deal is, sometimes they can go better and beat this, sometimes they cant. Either way - you've saved some money. £££ If you do switch suppliers - email over your cancellation notice - I've recently had to challenge British Gas as I gave more than the 30 day notice period but they sat on my email and did noting for over a week before ending the contract a week late and trying to charge out of contact prices for a week (not going to happen when I followed their instructions as per written on the bill giving my intention to leave) - which was very swiftly cleared up when I forwarded the email response from a member of British Gas the very same day I sent the cancellation notice - so nope notice given and acknowledged by British Gas staff member all more than the 30 days required, the fact they did nothing for over a week is their problem not mine...
Most of the above is common sense really .... Shop around but stand your ground and be firm