Today, I have teamed up with Scottish Friendly to share a quick money saving tip as part of the #thriftyfamily, enjoy!
I do it every year, like clockwork. One month before my utility or broadband contract expires, I shop around for a better deal. Then I call my current provider and see if they would match it, saving me the hassle of having to switch.
For broadband for example, I used to be with O2, which was bought by Sky last year. When I would call O2, using a very simple script like the one in the video below:
This is the transcript
“Hi, I would love to renew my contract and stay with you for another year, but is there any chance you can keep me on the new customer discount for the next 12 months?”
Generally, the operator on the other end of the phone will say yes. If you hear them hesitate, give them more arguments:
“You see, I really like having you as a provider, but XYZ is offering the same product £10 cheaper, and as a long time customer, I would like to see if you can match that offer?”
From my experience, instead of matching the offer, they suggest they keep you on your half price broadband for a year, which is even better.
Only once have I had to hang up and try again with another operator, probably got a new employee who didn’t know the ropes on the first call.
For four years in a row, O2 had kept me on the new customer discount, and now, as Sky is trying desperately to keep old O2 customers on board, I only pay… £5 a month for a year of broadband and landline. You read that right, just a fiver for unlimited broadband! My bill before that was around £20 so that five minute phone call saved me over £200. I do the same for all other utility providers.
You can negotiate pretty much anything. Why? Simply because retaining an existing customer is much cheaper for a company than trying to get a new one. So do not hesitate. Next time your contracts are expiring, shop around for a better deal, and if you like your current provider, ask them point blank if they are willing to match the competitor’s offer to keep you as a customer. If they aren’t, their loss. The new company will usually make it painless to switch, taking care themselves of updating your details and even your direct debit with your bank.
Just make sure to set a reminder 11 months from now in your calendar, and do it again!