Brand loyalty is costing Australians billions of dollars per year, as they stick to their usual providers for electricity, mobile and internet, according to new research.
Australians paid a total of $4.5bn in loyalty ‘tax’ last year, according to Finder, which was equivalent to about $331 per person.
Finder tech and utilities expert Mariam Gabaji said it was shocking how many people were missing out on a better deal.
“The soaring cost of living is forcing Aussies to fork out more money on almost everything – including energy, mobile and broadband. These are all utilities you can’t do without,” she said.
“But that doesn’t mean you should be stuck paying more than you need to.”
Analysis showed people were paying more than $1.2bn in loyalty tax for NBN, $1.1bn for electricity and $2.2bn for mobile data.
Ms Gabaji said people should shop around for the best deals.
“Providers really want your business – for example, some energy companies are offering $150 in credit or up to 15,000 Qantas points,” she said.
“If you haven’t switched utility providers – be it electricity, internet, or phone – in the last 12 months, you’re probably paying too much.”
A separate survey found 14 per cent of respondents admitted having no idea when a bill was coming.
Seven per cent were often surprised when a bill was due, while another seven per cent conceded they did not want to know when bills were due.
But Ms Gabaji said Australians should keep track of their bills.
“Call up lenders, utility companies and any other providers you are a customer with and request a due date change so your bills line up with your payday,” she said.
“Then set up direct debits so the bills are paid on time and in full.
“The new year is a great time to get in the driver’s seat of your money matters and implement some better financial habits.”