BARTERING for the best deal from suppliers saved Britain’s SMEs hundreds of millions of pounds last year, according to a new study.

The striking research, commissioned by npower Business and conducted by YouGov, showed that nearly two fifths (38%) of SMEs in the North West surveyed saved up to £10,000 (average £2,918) in the past year by negotiating.

This potentially resulted in impressive overall savings of £511million across the sector in Britain in the past 12 months.

However, despite the financial benefits, the research went on to show that 85% of North Western SMEs don’t bargain with their suppliers, and more specifically, nearly three quarters (70%) don’t negotiate with their energy suppliers, before agreeing to a contract.

Despite 28 of these 29 SMEs saying that they see value in doing so, only 52% of decision makers reported that they were often or always successful in negotiation.

In a bid to encourage SMEs to harness the power of negotiation, npower Business is launching a new campaign, led by the winner of the first series of BBC's The Apprentice, Tim Campbell, to remind companies to negotiate their energy contracts and wider business costs to get the deals they deserve.

The campaign is offering a series of tips to businesses around how to get the most out of their negotiations, including the importance of research and planning ahead.

Three fifths of decision makers in the North-West that negotiate suggested that being prepared and doing their homework were the top reasons they were successful.

Meanwhile, 48% of these reported an ability to adapt flexible negotiation skills to suit different personalities and styles.

Businessman and Apprentice winner Tim Campbell, who is fronting the campaign said: “Throughout my business career, I have always believed in the power of negotiation. It’s a vital skill that can make a huge difference to your business costs and importantly your profits.

"I am thrilled to be fronting this campaign to get across the message that polite, well-researched negotiation can help you get the perfect deal. Therefore, I’d recommend to pick up the phone today, and start negotiating.”

Philip Scholes, Head of npower Business, said: “This research shows that businesses across the UK are reaping the dividends of negotiating their supplier contracts. However, not all firms are entering discussions with their provider, which could prove to be a missed opportunity in the long term.

"That’s why we launched this campaign - we’d encourage all British businesses to look at their supplier costs, and particularly their annual energy costs, to help improve their bottom line.”

Follow the conversation on twitter @npowerbusiness using the #energytogrow