There is a lot of truth in the saying you get what you pay for. Competition means you can get a better price by shopping somewhere else, even if it is just saving a few pounds or pence. And an entire industry has evolved offering price comparisons to secure the best deals.

What got me thinking about this was my renewal from my gas and electricity supplier, the same one I have been with since 2002. We don’t live in a mansion and are careful not to waste energy, but our bills have always seemed high and were always going up, especially compared to rates being advertised for new deals.

But I was shocked when the renewal for the next 12-month contract had gone up to almost £200 a month. With a family of four in an average-sized semi-detached house, is that really the best they can do? Apparently so. 

Is that really how much we use? Apparently not. With a smart meter installed, we know how much we use by the second and my new supplier quoted almost half the renewal figure.

What convinced me that there is no reward for loyalty is that since I made the decision to switch in October, with my new company taking over this week, I hadn’t heard a peep from my old supplier. Not until a brief text and email on Monday night to say sorry you’re leaving, final bill will be sent to you.

For two months, I was expecting offers to try to make me stay, but I heard nothing. Conversely, my new supplier has been in touch regularly with details of the new deal, direct debit dates and amounts and when to give final meter readings.

I initially felt guilty for switching, but then wondered whether my previous supplier was bothered. Probably not. The situation might be different if I had eight million friends and persuaded them all to switch, but the reality is my defection has barely registered.

I switched because of constantly rising bills, but does the lowest price guarantee the best deal? I have come to the conclusion that with some things, it can. I am not looking for a highly skilled dentist or surgeon, or someone to build an extension. The pipes and cables are already installed and it is the same gas and electricity that will be running through them, whoever I pay my bills to. So, I couldn’t care less and the lowest price wins.

This made me think about other long-term contracts I have and whether my loyalty is being rewarded. I have had the same mobile phone provider since 1997 because the service is reliable, it has sorted out problems when they have occurred. And, when you crunch the numbers, what I am paying each month is a lot cheaper than the tempting offers of switching to the latest iPhone every 12 to 18 months.

Is this because my loyalty is being rewarded after all these years? No. Carefully comparing other providers, I am paying the same as someone with a similar package on another network. So what makes me stay is the good service.

But if I was to switch to another network, how hard would they try to keep me, or would they even notice? Again, I suspect I would disappear without a second thought.

This has made me realise that the bigger the company, the less interested it is in individuals and small groups.

Smaller, local businesses will go out of their way to earn your custom and do all they can to keep it. And this is where the small business owner and staff become everything to everyone – they are many roles in one.

They have to offer goods and services people want and need and at prices that are reasonable and make customers feel they are getting good value. They also have to provide excellent customer service so that people feel welcome and appreciated and will want to come back again.

And when you speak to someone, it isn’t a faceless voice in a call centre and you can ask to speak to a supervisor if you aren’t happy with the way things are going.

On a couple of occasions, a local computer repair shop has given me free advice on devices and software and even had a look inside a couple of laptops to see if they could be upgraded, again, without charge. I will definitely be going back there for my next purchase, and not to a national chain that charges just to take a look at a device. 

Loyalty is still rewarded, but it depends where you go. And, the smaller the business, the better you will be looked after.

#loyalty #customerservice