Rollover contracts are hardly a mega-jackpot for businesses

A new service has been launched to help businesses avoid the 'rollover-trap' and other contractual lock-ins.
 
CARNFORTH, U.K. - June 6, 2013 - PRLog -- Many business suppliers, some of them household names, are masters at using contractual lock-ins, automatic roll-overs, unreasonable renewal windows, over-complex tariffs, contract cancellation fees and spurious ‘deals’ to perpetuate business contracts. These contracts can be very difficult to exit and are often not at the most competitive terms available.

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/energy-forecaster

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
Email:***@eezibuy.co.uk Email Verified
Tags:Rollover, Trap, Contract, Renewal, Unfair
Industry:Business, Services
Location:Carnforth - Lancashire - England
Subject:Services
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