Reluctance to haggle could cost Aussies $6k in household expenses, Mozo research finds
Despite the opportunity for more long term savings, research from Mozo has revealed that Aussies are three times more likely to haggle for a lower price on white goods than they are on ongoing household expenses, such as home loans and energy deals.
The research showed that although a vast majority of Australians are unhappy with their energy plan, credit card and home loan provider, half of the nation are still reluctant to review what they’re currently paying for or to make any changes.
Mozo Director, Kirsty Lamont said that getting out your bills and comparing providers can be a bit of a chore but this time in isolation is the perfect opportunity to tackle tasks that may have been put off for too long.
“The majority of households are satisfied to settle for an okay deal because they think it’s too time consuming or uncomfortable to negotiate with their providers,” Lamont said. “Yet research from Mozo has found that haggling carries a high possibility of success. If you push for a discount, three out of four times you’ll get one.”
Men more likely to negotiate than women
As well as showing how prepared we are to haggle as a nation, Mozo’s research also uncovered who amongst us is keen to flex those haggling muscles.
Not only did the research show that men are more inclined to negotiate than women, it also showed that different age groups are concerned with different expenses. While over 65s are more worried about getting a better deal on their energy plan and car insurance, comparing and switching mortgages is of a higher priority for those aged between 39 and 64.
In terms of geography, New South Wales came out ahead, with residents more likely to review and switch more often than in any other state.
Households could save $6k by switching
Mozo’s data experts found that Aussies could save a total of $6,000 in one year, simply by switching to a more competitive energy plan, home loan, car and home insurance provider, and by transferring existing credit card debt to a balance transfer credit card.
The average savings worked out as per the following:
Energy savings were based on average prices in the Australian energy market and took into account the increased power usage that is no doubt happening as a result of COVID-19. The calculations were based on an average household of two adults and two children, working from home for eight hours a day, five days a week.
Mozo’s top tips on cutting down household bills
Not sure where to start? Here are Mozo’s top tips for cutting costs on your household expenses:
- Become a detective and compare, compare, compare! When it comes to getting yourself a lower rate, doing some research is a must. Check out comparison websites, like Mozo, to see what other rates are out there. Once you’re satisfied that you could be paying less elsewhere, take your findings to your current provider and ask for a rate reduction.
- Don’t settle for second best. If you’re not happy with what a provider offers you then don’t accept it. Either keep haggling or think about switching to a provider with a more competitive rate.
- Try to haggle for more than just a lower rate. While a lower rate is the ultimate goal, it’s not the only thing you can haggle for, other perks to aim for include fee waivers, rewards points and cash back.
- Don’t be afraid to bundle. When haggling for a more competitive deal, you may find it worth your while to bundle up multiple products, so be prepared to make a few changes.
Want to start by refinancing your home loan? Why not head to our compare refinance home loans hub or take a look at the offers below to get going.
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