A new study has revealed that over three quarters (77%) of
small and medium sized enterprises (SMEs) in the UK believe it is
important to buy local when it comes to purchasing goods and
services. This could be great news for the UK, as the economy
strives to reach its pre-recession GDP peak.
The study was carried out by Signs Express, the UK’s largest
sign company, which has a franchise sign production centres all
over the UK. Signs Express commissioned an independent
research company to poll more than 1000 small and medium sized
businesses in the UK. The results show that 77% of business
decision makers think it’s important to choose a local supplier
when purchasing goods and services.
The top three reasons that businesses gave for choosing local
suppliers were:
•“It is better for the local economy” (61%)
•“If I am unhappy, I can approach the supplier easily”
(56%)
•“I like dealing with people that play a positive role in my
local community” (47%).
The survey also revealed that the majority of those with
purchasing power do not believe price is the most important factor
when it comes to selecting a supplier. Three quarters of
those surveyed (75%) said that if they believe they are getting
good value and service, price is not the most important factor.
Only 3% of businesses in the UK always select the cheapest
quote.
Craig Brown, managing director of Signs Express, says: “A
large proportion of Signs Express customers are SMEs and so it’s
really important that we understand their priorities when it comes
to working with suppliers,” he explains. “We first carried out our
‘SME Expert’ research project in 2011 and, whilst it backed-up some
of our opinions, we were really surprised by some of the findings
the survey generated. Three years on, we were keen to see if
the picture has changed. Interestingly, whilst we’ve come out of
the other side of a recession, for the main part businesses still
have the same concerns and bugbears as they did when the UK was at
one of its lowest economic points.
“Unsurprisingly, in our opinion, when it comes to selecting a
supplier the vast majority of people we surveyed (75%) still
believe that value and service are far more important than securing
the cheapest quote. In 2011 that figure was actually slightly lower
at 71%.”
Signs Express also asked people in the UK about their biggest
frustrations when it comes to dealing with suppliers. The top
four were:
•Hard sell: suppliers trying to push a sale with ‘the offer
ends today’ or similar (57%)
•Inexperienced suppliers not being able to answer questions
(36%)
•Suppliers not providing a quote as promised (45%)
•Suppliers not turning up for an agreed appointment
(33%)
“We were shocked to discover that, in the previous six months,
almost half (45%) of those we surveyed had experienced a supplier
not providing a quote as promised. More than a quarter (33%)
had waited for a supplier who never turned up for an agreed
appointment,” Craig Brown says.
The survey also confirmed that appearances definitely matter
when people are choosing a supplier. A massive 98% of business
decision makers thought that good quality and attractive signs and
graphics played a significant part in giving a good impression of a
business. More than half (55%) of the survey respondents said they
would be less likely to choose a supplier whose signs and graphics
looked scruffy and unprofessional; and a further 42% said it may
have an impact on their decision.
“What’s clear from our research is that SMEs are very
committed to buying local. As the UK economy starts to show
real signs of sustainable growth, quality service, reliability,
professionalism and good value are ever more important. As
suppliers, we all need to make sure we are adding value and
addressing the needs of our customer,” Craig Brown concludes.
This year, Signs Express is celebrating 25 years as the UK’s
largest and leading signs and graphics company.
