Price Comparison Websites Take Over £650 Million Commission Each Year

SaveItBuddy.com

Price comparison websites take over £650 million in commission each year from consumers. That’s the finding from a recent YouGov survey undertaken by saveitbuddy.com, which claims to be the UK’s only comparison website that gives cash back on insurance and energy deals.

The survey suggests that 10.1 million GB adults used comparison websites in the past year, spending an average commission of £64.59 – amounting to £652.5 million.

In addition, the study found that most people are unaware of the full costs of using comparison websites to find the best deals on insurance and energy. It highlighted that 21 percent believe these websites take up to 5 percent commission, and one fifth (20 percent) thought this figure stood at between 5 and 10 percent. The average statistic for this is actually 24 percent – yet only 2 percent of those questioned suggested that price comparison sites would take between 20 and 25 percent in commission costs. Commenting on this finding, Cedric Clarke, co-founder and commercial director of saveitbuddy.com, said:

“This figure alone highlights that there is a real lack of understanding of how the price comparison market works. Consumers obviously appreciate the fact that they are paying commission on the deals, but few realise exactly how much they are spending on this part of the transaction.”

Through saveitbuddy.com’s price comparison mechanism, users can receive anything from £15 to £62 cash back, per transaction. It presents a new way of comparing insurance and energy, and saving online, because the customer receives the majority of commission back after the transaction has completed.

The research also concluded that one quarter (26 percent) of online GB adults spend between £100-£499 on price comparison websites each year (an average of £269.14). When asked for the top reason why they use them, more than one third (37%) of respondents advised it was because they believe they provide the cheapest deals, but it seems this is not always the case. And 27 percent suggested that they use comparison sites to save them time when looking to renew their insurance and energy suppliers.

Cedric Clarke added: “Large numbers of people are clearly using price comparison websites to renew their insurance and energy deals, and benefiting from major savings. However, few appreciate the commission levels they are paying. Every household needs insurance, and it is likely that those who don’t use price comparison websites for insurance or utilities renewals (39 percent of the online respondents surveyed), will perhaps use the services of a broker instead, who also receive between 20-25 percent commission, as a rule of thumb.

“During this period of economic uncertainty, consumers are watching every penny and looking for the best deals, from shopping to car and home insurances. I believe it is vital for the industry to be transparent about the levels of commission their customers are paying.

“saveitbuddy.com’s aim is to reduce its customer’s outgoings each year, and to ensure they receive their cash back as early as possible, whilst saving time and providing the best choice. saveitbuddy.com offers comparison with cash back on insurance and energy deals; the only question is whether the the rest of the industry will follow suit.”

saveitbuddy.com customers, who have never switched energy providers before, could save up to £480 per year, as well as earn £15 cash back.

The site also has exclusive deals including Vauxhall, Ford and Chevrolet cars; offering the lowest market prices on new models.

Unlike other voucher sites, Save it Buddy doesn’t show any expired deals on the site; all deals on more than 2,000 UK brands are live.

The online ‘Click Diary’ also helps customers to effectively manage their money, and time.

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15 thoughts on “Price Comparison Websites Take Over £650 Million Commission Each Year

  1. Price comparison sites have been exposed by the money program as being a bit of a fraud. I only use them to get a list of all the insurers then I phone around myself. I’ve always found them cheaper to phone direct and the prices on the comparison websites are way off! Big scam in my opinion.

  2. Agree with the above as been proven time and again that they are good for getting a quote but then better deals can be done by going direct. Even with the commissions they are making a company like moneysupermarket has actually lost £40 million over last 4 years!

  3. Agree with the above as been proven time and again that they are good for getting a quote but then better deals can be done by going direct. Now, the phone’s price far beyond its value and role!

  4. I think you have to look at the overall savings of using the comparison websites. If you pay 30 pounds, but you save 300 pounds, then it’s not a bad deal. It takes a considerable amount of time to call every energy provider, and compare the results. This leads to procrastination and significantly overpaying for another year.

  5. So nice vedio “This is a scary area for brands, and banks in particular are still wary of getting into social media because of issues such as this.

  6. Extraordinary accumulation. Yes, that’s just what I desirable to see! Great matter here. The field and acceptance were right perfect. I opine that your perspective is colorful, its retributive symptomless intellection out and rattling extraordinary to see someone who knows how to put these thoughts pile so considerably. Great job on this. Convey you! Please visit here –

  7. I think it depends on the industry and how wide the comparison site spreads its net. Of course, people should look at a comparison site and then check with one or two companies that deal direct. The fact remains, comparison sites offer speed, convenience and, for the most part, independence.

    It would be naive to suggest comparison sites are completely independent, but the more suppliers they compare, the greater their independence or objectivity is.

    In my experience, at least in the car rental business, suppliers do not increase the prices to pay for commissions, instead, they see the commission as a customer acquisition cost or marketing expense.

    Am I biased yes, but do I believe in the concept of price comparison, most certainly. It forces competition and that is good for the consumer.

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