Following news that the Government plans to launch a campaign to encourage businesses to cut prices to help with the cost-of-living crisis, 27% of consumers in a survey by Purbeck Personal Guarantee Insurance have said they think small businesses should be excluded from the campaign.
While 53% of those surveyed thought small businesses should be included in the initiative and take steps to cut their prices, the remainder, 20% were unsure.
The findings suggest the ‘one size fits all’ campaign devised by the Cost of Living Tsar – David Buttress – may not receive wide support from small businesses owners who are already struggling with rising costs, the ongoing effects of the pandemic and staff shortages.
Todd Davison, MD of Purbeck Personal Guarantee Insurance, the specialist personal guarantee insurance provider to small business owners and directors said: “The idea that businesses divert their marketing spend into supporting price cuts works as long as there is marketing budget there in the first place. Businesses need to innovate in tough times and that’s what small businesses excel at. Simply slashing prices as a small business owner creates unrealistic expectations and devalues the proposition.
“We have seen demand for finance increase from small businesses and await details of a new lending scheme to replace the Recovery Loan Scheme which closed at the end of June. In the absence of any further support from the Government, despite the hard campaigning of the FSBiii, small businesses need to seriously consider whether they can or should cut prices for the ‘kudos’ of taking part in this campaign.”
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net
Updated 13.01.2020: Here’s the latest from Reuters, as Travelex gets back on track, but will its customers be so keen to trust them with their money and their data in future? Foreign exchange firm Travelex […]
Businesses that trade online and in person sit in a strange place when it comes to insurance. Though it’s one business, they don’t have one insured risk. They have two, and these risks share little in common. […]
In September, the Financial Conduct Authority (FCA) announced tailored support for borrowers affected by coronavirus (Covid-19) after 31 October, which it would keep under review as the pandemic evolved. Insurers and brokers who offer payment […]
Be the first to comment