Profiting from recession

Interesting to see founder Simon Nixon attribute the company’s 57% rise in pre-tax profits to the current economic downturn.Far from worrying about a credit crunch, Nixon insists it’s good news for his company and other price comparison sites:"One of the big issues for price comparison is consumer apathy," he said. "People basically have been pretty well off the last three or four years and they can't be bothered comparing and finding the best deal on their mortgage or their loan or their credit card."And I think in times of recession where they have to tighten their belts they come to a price comparison website because every penny counts."Lucky for him, you might think, but it’s interesting to consider that while a recession limits consumer spending on the high streets it perhaps opens new opportunities for entrepreneurs to exploit.Smarta spoke recently to a high street bank whose model is based on limited support services but low rates and minimal charges. It too admitted a downturn traditionally sees its switcher figures rise.If the economic climate worsens it’ll be interesting to see what business models emerge and how the leading business suppliers react. Either way it’s worth reassessing not just how you price but also all your service agreements – there could be significant savings to be had!

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