[ad_1]
Two things happened this week that should prompt consumers to think more about how we spend.
Electric Ireland announced a price increase for electricity customers and Eir confirmed that it would not pass on the VAT reduction, introduced by the Government, to consumers.
The government has cut the standard VAT rate from 23% to 21% until the end of next February, as part of its economic stimulus measures.
Many view the Eir movement as petty, but it doesn’t break any rules. Some consumers may have scoffed at an email from Netflix and other service providers detailing the monthly savings as a result of the VAT reduction, but at least they passed it.
Price increases and inability to pass on VAT savings come from established entities, which rely heavily on brand loyalty.
As consumers, we often like to cede our business to a company that we trust or have an affinity with. Some people call it “brand loyalty,” others might call it consumer apathy. Sometimes we perceive that changing service providers is complicated, but in reality it is the opposite.
We adapted to the arrival of Aldi and Lidl as few could have imagined. Their dominance is now a real problem for supermarket strongholds like Tesco, Dunnes Stores and SuperValu. The choices we make as consumers can have a major impact on how those who provide us with products or services treat us.
The ESB measure comes as other increases also affect consumers, banks and health insurers are also adding more to the monthly bill, so consumers should be aware. While each increase seems small individually, when we add them together, they will cost.
Irish Life Health’s announcement that health insurance premiums will rise 2.5% will inevitably mean increases from other health insurance providers as well; in general, this is how things work.
So what should we do?
Shopping around. There are a plethora of price comparison websites. In one, when you enter your Electric Ireland details, it produces options that offer annual savings ranging from € 196 to € 287.
You can do the same with gas, internet, health insurance, home insurance, motor insurance. The cost of cozy comfort is sometimes too high, and as many of us adjust to the new financial realities of Covid, it might be a good time to at least explore the potential savings.
Hia.ie is the place to go to see what health insurance alternatives are available. It is not commercial and is run by the Health Insurance Authority, it is simple and very useful.
The other option after looking for utilities is to tell your current provider how good you can get elsewhere, they may not offer you all the savings, but they might show you enough loyalty to keep you on board.
But, when it comes to big deals, treating them badly and showing that they will move, they have a way of focusing their minds on getting it back. You can tell them you’ll come back when the price is right!
So, make the move.
[ad_2]