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Follow on Google News |  Rollover contracts are hardly a mega-jackpot for businessesA new service has been launched to help businesses avoid the 'rollover-trap' and other contractual lock-ins.
The problem is not just about mis-selling. The fact of the matter is that the majority of 'contractual lock-ins' are the fault of the companies themselves – they often just do not have the resource and organisational efficiency to keep on track of with multiple renewable contracts. At best this indifference wastes considerable money and at worst it can mean that a customer is not getting the service he requires. For example, the unheeded lapse of a critical insurance cover could prove a disastrous oversight. Help for businesses Now help is at hand. PartnerSave Limited, a company providing support services to trade associations, has launched its Eezi-Watch 'early warning system' for business contracts. By registering on-line for Eezi-Watch a company can ensure that, not only does it get timely alerted to its renewal dates for a wide range of services, it also gets competitive alternative options at the point of renewal. Eezi-Watch is a free-of-charge service offered through more than 60 affiliated UK trade associations (see list). For all other users there is a small fee dependent on the number of contracts being followed. Go to www.eezi-watch.eezibuy.co.uk. “Auto-rollover contracts can offer some benefit in the form of convenience for the buyer but the main beneficiary of is invariably the supplying company.” says Alan Kennedy, CEO at PartnerSave. “The long-serving customers of these companies can lose out big time - existing customers are naturally excluded from all 'new customer' promotions and, especially in volatile market conditions, are often treated as mere 'cash cows'”. And, according to Kennedy, it's not just utilities, phones and insurance where suppliers are 'trapping' business customers. "The auto-renewal phenomenon has spread into numerous business areas where it catches out tens of thousands of businesses every year who get caught with sup-optimal supply contracts and pay over the odds." “This means that long-serving customers are effectively being penalised for their loyalty.” says Alan Kennedy. “This is hardly good business practice and extremely irritating and expensive to faithful customers.” What is the government doing about this? The UK government is well aware of the problem but according to Kennedy have priorities elsewhere: “The government continues to chip away at dubious contractual practices such as automatic roll-overs but most of this activity is aimed at protecting consumers rather than small and medium-sized businesses. In any event, it is a case of too little too late.” ENDS For further information contact: Alan Kennedy, CEO Partnersave Limited 0771 141 7468 a.kennedy@partnersave.co.uk NOTES TO EDITORS: 1. Most companies have a horror story about missed renewal dates and auto-rollovers. Like the company who missed a property lease renewal deadline and were tied in for another seven years, or the price review date that was missed so that rates went up automatically by 8% above RPI. And there's the business owner who came back from holiday to a 60% electricity increase and a two-year lock-in. One source recently reported that a small family butcher in Birmingham recently missed out on saving more than £11,000 a year on its business energy bill by overlooking its contract renewal date. 2. Recent statistics from the Energy Forecaster*, a service from energy broker Business Juice, show that: Companies could be missing out on 61% of energy savings through failing to renegotiate at the end of contracts. The average saving through renegotiation was found to be £1,600. Nearly 50% of of medium-sized businesses and 25% of micro-businesses had been rolled over into new contracts 19% of businesses were not aware they were at risk of being rolled over because they did not receive any correspondence from their energy supplier. * http://www.businessjuice.co.uk/ 3. The Eezi-Watch contract renewal alert service is available free of charge to members of the following trade bodies: Angling Foundation Angling Trades Association Animal Health Distributors Association Association of Play Industries Association of Pleasure Craft Operators Association of Professional Sales Agents Association of Safety Professionals Boat Retailers and Brokers Association British & Irish Hot Tubs Association British Association of Seating Equipment Suppliers British Golf Industry Association British Home Enhancement Trade Association British Marine Electronics Associations British Marine Federation British Motor Schools Association British Rootzone and Top Dressing Manufacturers Association British Safety Industries Federation British Sailing BS British Small Boatbuilders Association British Swimming Pool Federation Broad Hire Boats Federation BHBF Canal Boatbuilders Association Club Managers Association of Europe Commercial Horticultural Association Engineering Industries Association Engineering Industries Association Entertainment Retailers Association Environmental Safety Association European Golf Industry Association Event Supplier and Services Association Federation of Garden and Leisure Manufacturers Federation of Sports and Play Associations Fisheries Accreditation Scheme Golf Consultants Association Insurance, Finance and Legal Services Associations Independent Footwear Retailers Association Industrial Packaging Association International Association of Pet Equipment Suppliers International Licensing Industry Merchandisers Association Leisure Boat Builders Association Marine Engine and Equipment Manufacturers Association Marine Trades Association Marine Leisure Association Music Industries Association Occupational Health Association Outdoor industries Association Personal Safety Manufacturers Association Play Providers Association Professional Anglers Association Safety Distributor Association Shop and Display Equipment Association Single Ply Roofing Association Sporting Goods Industry Association Sports and Fitness Equipment Association Sports and Play Construction Association Superyacht UK Swimming Pools and Allied Trades Association Test and Certification Association Textile Services Association UK Golf Course Owners Association Wheeled and Urban Sports Association Yacht Harbour Association End
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