Displaysense has reported that many public sector bodies are rushing to meet their budgets before the end of 2009 in an effort to maximise budget allowances in 2010.
2009 has proven to be a troubling and uncertain year for the majority of companies and public sector bodies in the UK, resulting in procurement managers, store owners and accountants departments tightening their belts and keeping a watchful eye over the budgets.
Displaysense, the UK’s leading supplier of display products such as display cases andleaflet holders has recognised a growing trend of public sector organisations that are purchasing and stocking up on duplicates of products as the year comes to a close in order to meet budget and prevent a smaller budget in 2010.
In certain examples found by Displaysense, a growing number of customers were even purchasing shelving units to store their duplicate products. This over spending might seem to some as a poor use of tax payers money and certainly, with scandals such as MPs expenses still in people’s minds as well as the impending increases in VAT, not the best timing. However, spending under budget can result in a cut of annual allocation for the following year which, depending on the public body, can have a greater impact on the tax payer as public bodies are expected to do more for less.
For example, hospitals and schools will purchase many poster holders and pamphlet displays from the likes of Displaysense in order to offer advice and information on a range of topics, from helping the elderly avoid winter bugs to assisting parents in keeping up with changes at their children’s school. Local councils can help educate their community on the money saving options available to them in the local area, which is especially useful for those on an unpredictable income. This type of advice and guidance is hard to put a price on, but those that have already benefited from it will no doubt say it is priceless.
Steve Whittle, the marketing manager at Displaysense, commented: “During turbulent financial times such as these, it is not surprising that a number of public sector bodies have been cautious with their spending towards the start of the year. Holding off spending can be beneficial to a council as they have better buying power with multiple purchases as we are able to offer greater discounts. The result for us is an increase in sales on the likes of our business card holders and exhibition stands which we would not usually see at this time of year.”
With the year drawing to a close and local councils and public sector bodies having topped up on their supplies for the year ahead, it looks like companies such as Displaysense might have to wait until Christmas next year for another surge in spend. Christmas might come early in April however, as the end of the financial year will draw in other budget busting customers looking to capitalise on their left over funds.