Irish Examiner

December 30, 2009 Wednesday

Electricity and gas prices set to plunge

HOMEOWNERS are paying over €100 less for gas and electricity than they were a year ago, and prices are set to plunge further.

Price cuts over the year saw average annual gas prices drop from €910 in October 2008 to €795. Gas bills will fall further in February as an 8% cut takes effect, wiping €53 from the average bill.

Electricity prices are less favourable, with the average bill increasing from €736 in October last year to €795. However, the opening up of the electricity market has seen 250,000 people switch to Bord Gáis for their electricity since early 2009. It offers customers a 10% discount on ESB prices. Those choosing to pay by direct debit and are natural gas customers will get a total 14% discount.

Flogas, meanwhile, is claiming it will always offer customers cheaper prices than Bord Gáis for gas. Up until February it is guaranteeing 9% lower prices. However, consumer experts have warned that if a household is getting its electricity from Bord Gáis, it would likely be cheaper to stick with Bord Gáis too for gas.

Saveafewbob.ie managing director Niall McHenry said: “2009 has been a good year for consumers when it comes to electricity bills. Attractive offerings from both An Bord Gáis and Airtricity has resulted in savings in the region of €100 to €150 for the average household.”

Homeowners have been enjoying increased competition in the domestic energy market over the last year.

The Irish natural gas market was opened fully to competition in July 2007, which means that alternate suppliers can compete against Bord Gáis Energy in all market segments. The electricity market was opened in 2005.

Gas prices peaked in September 2008 at an average of €916 per customer. Since then there have been two reductions. The first, in May, brought the average price down by 12%, to €813, and the second, in October, brought prices down a further 9.8%, to €738. Consumer Association of Ireland chief executive Dermot Jewell said it makes sense to review your electricity and gas supplier when there is competition.

Irish Examiner

December 29, 2009 Tuesday

Credit cards described as ‘public enemy number 1′

USERS have been warned to be aware of hidden fees when it comes to choosing a credit card –described by a consumer expert as “public enemy number one”.

Late payment fees can range from €7.50 with Bank of Ireland to €15.24 with MBNA, EBS and Postbank.

An over-credit limit fee can also vary from €6.25 with Bank of Ireland to €12.70 with EBS and Postbank.

The higher fees also apply to GE Money’s card, which is administered through Debenhams.

Niall McHenry, managing director of Saveafewbob.ie, said: “Without question for those struggling with their finances, credit cards are public enemy number one. Unless you are extremely disciplined and pay by direct debit each month, you really should avoid using credit cards, many of which can charge interest rates of over 20%.”

The Consumers’ Association of Ireland (CAI), meanwhile, said people should be aware how easy it is to switch from one credit card to another.

It also said borrowers who paid off the minimum amount every month also needed to act as they will see their debt grow larger as a result of hikes.

CAI chief executive Dermot Jewell said: “There are too many of us who are not actively taking advantage of better competition and better value.

“I have always argued that consumers are neither stupid nor naive and that, given the opportunity, they would ensure that only those who appreciated and rewarded their custom would ultimately benefit from what would be a fair market with good products at affordable prices,” he said.

The Financial Regulator said credit cards, if used wisely can be one of the cheapest sources of credit available.

If a bill is paid before the due date there will be no charge. This is called the “interest-free period” and varies from one credit card provider to another but is generally about 56 days.

Most providers do not offer an interest-free period for cash withdrawals however.

“If you only pay off the minimum repayment it will mean you will pay more in interest and the amount you owe will stay high unless you start to make larger regular payments to reduce it,” said the regulator.

Credit card users must be aware that if they pay off their bill they could be charged interest on all of their purchases from the day they bought them.

For example, if your statement shows €1,000 is owed and €900 is paid by the due date, most providers will charge interest on the full €1,000 until the date the payment reaches the account.

Meanwhile, Irish Mortgage Corporation director Frank Conway said many people are using the savings they received on their mortgages to reduce debts.

Sunday Tribune

December 13,2009

‘Tis the season to be prudent

It may be tempting to put all the expense of Christmas on your credit card,  but beware

With the recession seemingly never ending and Brian Lenihan’s tough budget, you would be forgiven for thinking that Christmas has been cancelled this year.

Spending will definitely be down this December – by an average of 22%, according to the annual Deloitte Christmas spending survey – but households are still set to part with around €1,110 each over the festive period.

This is probably the most expensive time of the year and the most dangerous for anyone who is already struggling to meet their bills, given the enormous pressure to spend. A recent survey by consumer website SaveAFewBob.ie found that most people intend to make it through Christmas without borrowing money but, worryingly, just half had made a budget and 22% of respondents between the ages of 18 and 24 said they were willing to borrow to fund the festivities.

It is very easy to bury your head in the sand and throw everything on the credit card but this year it is more important than ever that we budget for Christmas and live within our means, says Michael Culloty, spokesman for the Money Advice and Budgeting Service (Mabs).

“None of us knows what is going to happen in the next 12 months. People are not sure whether they are going to keep their jobs. It is important to be prudent this Christmas – not to be Scrooge but to be prudent and pay for everything in cash,” he says.

In an ideal world, we would all stick to cash for Christmas but, realistically, plenty of us are going to fall back on our plastic friends to see us through the period. The danger here is that you rack up a massive debt on the credit card that you cannot clear, leaving you with an outstanding balance that means you could still be paying for this Christmas when the spending starts all over again next year.

The best way to ensure that you are not subject to very high rates of interest is, of course, to pay off your credit card bill in full when it arrives. Again, that always happens in an ideal world but many of us will emerge from the festive period with a hefty balance outstanding on our credit cards which will stay with us for many months.

However, just because you are not in a position to pay it off straight away does not mean you should simply sit back and let your credit card provider charge you through the nose. There is a huge difference in the interest rates charged by the credit card companies. If you are unfortunate enough to have an Ulster Bank Classic Card or Debenhams MasterCard, for instance, you will be landed with a punitive 17.9% interest rate on purchases.

By contrast AIB’s Click card carries an interest rate of just 8.5% – a rate that betters those currently being charged for personal loans by all lenders. It should be noted, however, that the AIB Click card also comes with the highest interest rate charged for cash withdrawals, at an extremely high 23.4% compared to NIB Gold card’s rate of 10.7%. It goes without saying, though, that you should refrain from using your credit card for cash withdrawals.

Switching credit cards is not difficult and, once you are approved, it should be possible to transfer your existing balance to the new card to avail of the new lower rate. Indeed, while it is not as common as it used to be, some providers continue to offer interest-free periods on balance transfers with MBNA’s Platinum card offering 0% interest for 10 months. Bank of Ireland offers the best combination of interest rate and interest-free period with the Clear Credit Card charging 9.5% on purchases and six months at 0% on balance transfers.

If a change in your personal circumstances means you are not in a position to switch or cannot get approved for a new card, it would do no harm to contact your existing credit card provider to discuss your current interest rate. Though they do not advertise it, anecdotal evidence suggests some providers will agree to lower the rate if asked to do so by customers.

Credit cards are an extremely expensive way of borrowing money and if you do find yourself overwhelmed by a mounting balance, you would be better off taking out a personal loan at a lower rate to pay it off. If you have difficulty securing a personal loan from a bank, you should try your local credit union. Many have schemes in place to deal specifically with credit card debt, says Kevin Johnson, chief executive of the Credit Union Development Association.

“Several credit unions throughout the country now offer credit card elimination or repayment initiatives which aim to reduce and eventually clear credit card debt through a series of personal loan payments. However, to avail of this unique facility the consumer must agree to halt any activity on their credit card. The use of a credit card is somewhat habitual and so these credit unions have found that if people can break the habit they are less likely to run up huge credit card debts again in the future,” he says.

There has been a reduction in the general use of credit cards over the past year but this sort of debt continues to pose a significant problem for those in financial difficulties. After personal loans and utilities, credit card debt is the third-most common active debt for clients of Mabs. The cycle of debt generated by credit cards and store cards is a major issue for many facing repossession, says Ciaran Phelan, chief executive of the Irish Brokers Association.

“For the last 10 years, this type of short-term debt has been freely available to anyone in full employment with few if any checks to assess whether they can actually afford to meet their numerous debt repayments. There should be a new form of regulation to ensure a strict application and verification of maximum net disposable income thresholds to all debt applications including credit cards, store cards and money lender activities,” he says.

Dealing with credit card debt is no laughing matter: Culloty says Mabs has had several clients recently who have found themselves under undue pressure from credit card providers.

“It has come to our notice that some of the credit card companies are placing undue pressure on people – pressure that could be in breach of the law, in some instances. We would ask people who are being placed under undue pressure by such companies that they record the incidences and contact their local gardaí,” says Culloty.

Sunday Business Post

December 13, 2009

Fewer will borrow to fund Christmas

Close to one in nine people are no longer prepared to borrow to fund Christmas, according to the latest survey from consumer website, SaveAFewBob.ie.

Niall McHenry, managing director of SaveAFewBob.ie, said: ‘‘What this survey highlights is that the buy now, pay later mentality of recent times has well and truly been laid to rest.

‘‘With most families having experienced a sharp reduction in take-home pay this year, the current mood is one of caution.

The majority of consumers will spend only what they can afford this Christmas.”

Younger people are more likely to borrow for Christmas, with 22 per cent of 18 to 24year-olds saying they would be willing to take out a loan or use credit, such as a credit card or overdraft, to fund their festive spending.

Just 6 per cent of 55 to 64year-olds shared this view. Almost three in five people intend to dramatically reduce the amount they spend on food, drinks and gifts.

Half of those surveyed have budgeted for Christmas, but younger people and single people were less likely to have made financial preparations for the festive season.

Irish Independent

December 3, 2009 Thursday

I’m dreaming of a tight Christmas…consumers change their tune

FORGET a white Christmas, cash-strapped consumers are set to be dreaming of a tight Christmas this year.

Almost six out of 10 adults intend to cut back on the celebrations as the recession is set to take much of the fun out of the festive season.

And a new survey of Christmas shopping shows that large numbers of families will be forced to smash their piggy banks to buy presents, food and drink.

But consumers are determined not to borrow money to cover the cost of Christmas, with a massive 87pc saying they will not take out a loan, the survey commissioned by the website SaveAFewBob.ie shows.

Managing director of the website, Niall McHenry, said: “What this survey highlights is that the ‘buy now, pay later’ mentality of recent times has well and truly been laid to rest.

“With most families having experienced a sharp reduction in take-home pay this year, the current mood is one of caution and the majority of consumers will only spend what they can afford this Christmas.”

He said that most families were up to their necks in debts so borrowing was not an option for them.

Struggle

“For many, it is a constant struggle to meet their monthly bills and paying off another loan is the last thing they need,” Mr McHenry said.

Women and those nearing retirement age are the most likely to cut back, the poll carried out by Red C shows.

While spending habits may be changing, people still want to celebrate Christmas in a traditional manner. Nine out of 10 people intend to spend more time with family and friends.

People are also full of good intentions, with seven out of 10 saying they would like to take part in a greater number of community activities over the holiday period.

Meanwhile, another survey looking into the future of Ireland’s personal wealth has found that four out of five Irish women hold a savings or deposit account. However, just a quarter hold a pension, the Halifax research shows.

There has been no improvement on the level of females holding a pension since 2007, with figures remaining static over the two-year period.

- Charlie Weston Personal Finance Editor

Daily Mirror

December 2, 2009 Wednesday

I’m dreaming of a tight Christmas

The tills are set to jingle a little less this Christmas as 60% of cash-strapped consumers plan to cut back on their festive celebrations.

Up to 58% of Irish people intend to spend less, while 13% will be forced to break into their piggy banks to make ends meet.

A survey by Irish website SaveAFewBob.ie showed that consumers intend to “dramatically” reduce their food and drinks bill. But 87% refuse to take out a locan to cover the cost of Christmas.

Managing Director Niall McHenry said: “What this survey highlights is that the ‘buy now, pay later’ mentality of recent times has well and truly been laid to rest.

“With most families having experienced a sharp reduction in take-home pay this year, the current mood is one of caution and the majority of consumers will only spend what they can afford this Christmas.

“Most consumers are up to their neck in debt and borrowing is simply not an option. For many, it is a constant struggle to meet their monthly bills and paying off another loan is the last thing they need.”

The Red C study showed that 51% have budgeted towards Christmas all year - with women making the greatest sacrifices.

The survey also showed that 58% women aged 34 to 55 have made the greatest effort to cut back for the festive season but only 45% of men are counting teh pennies thsi Christmas, with single men and 18-24-year-olds more likely to blow their money.

Mr McHenry added: ” Forget last-minute shopping sprees - being financially prepared will give you the freedom to buy what you need without overspending.”

But as the doom and gloom continue, it seems our plans for the festive season are becoming more recession-proof.

The survey revealed that for 92% of us, the focus this Christmas will be on spending time with our loved ones.

Meanwhile, 68% intend to stay in, play games, watch TV and filsm, and surf the net instead of splashing out on nights on the town.

And to dispel the perception of greedy, consumerist Christmases, 72% of respondents say they will exercise and take part in community activities.

Press release

01-12-2009

87% refuse to borrow to cover Christmas costs

The latest survey carried out by consumer website, SaveAFewBob.ie, illustrates that people are serious about making savings this Christmas. With less than four weeks to go until Christmas Day, financial preparations are well underway.

The Christmas Shopping survey shows that consumers are employing a variety of methods to reduce spend including cutbacks, budgeting and saving stamps. Notably, the majority of consumers, 87%, are no longer willing to borrow. However, survey results also indicate that attitudes to lending vary between the younger and older generation.

Commenting on the results findings, Niall McHenry, Managing Director of SaveAFewBob.ie says:

“What this survey highlights is that the buy now, pay later mentality of recent times has well and truly been laid to rest. With most families having experienced a sharp reduction in take home pay this year, the current mood is one of caution and the majority of consumers will only spend what they can afford this Christmas”

Funding Christmas ’09

Cutback
• 58% intend to dramatically reduce spend on food, drinks and gifts
• Women (67%) and those aged 55-64 years (66%) are most likely to cutback
• Men (48%) and those aged 65+ (38%) are less likely to reduce spend on food, drinks and gifts

Budget
• Over half (51%) of those surveyed have budgeted towards Christmas
• Women (58%), those aged 35-44 years (57%) and people with dependent children (59%) have made the greatest effort to financially prepare for Christmas
• Men (45%), 18-24 year olds (43%) and single people (42%) are less likely to have budgeted towards Christmas

Saving stamps
• 28% will rely on saving stamps and store coupons to purchase food, drink and gifts
• Those aged 45-54 years old (33%), widowed (35%) or from a lower social class (34%) are most likely to avail of savings stamps and store coupons

Borrow
• 13% intend to borrow whatever they need to fund Christmas
• An overwhelming majority, 87%, said they would not borrow to cover Christmas costs
• Participants in the 18-24 year age group are most willing to borrow money at 22%
• Participants in the 55-64 age group are least willing to borrow at just 6%

Christmas wish list ’09

While spending habits may be changing, people still wish to celebrate Christmas in a traditional manner:

• 92% intend to spend more time with family and friends
• 72% of those surveyed would like to get outdoors, exercise and partake in a greater number of community activities
• 68% intend to stay indoors, play games, watch TV or DVDs or surf the Internet
• 52% would to like to cook more festive food

Research was conducted by independent market research agency, RED C Research. Results are based on a nationally representative sample of 1,011 adults. Research was conducted via telephone omnibus from the 16th -18th November 2009.

Irish Independent

October 29, 2009 Thursday

Blog Digest

Despite the popularity of social-media sites such as Facebook and Twitter serving as a growing platform for businesses to promote their brand and services, blogging still remains a stalwart medium for small Irish firms. Here are a few companies who have embraced the blog as a way of reaching out to customers.

SaveAFewBob.ie

SaveAFewBob.ie’s blog is where its vision is realised: this start-up’s value lies in showing consumers how to save money on everyday spending through independent research, expert reviews and relevant promotions.

From personal finance to family spending, lifestyle and entertainment on the cheap, SaveAFewBob.ie is all about squeezing the most from your budget and catching special offers you might not have otherwise spotted.

The personal finance section is a recommended visit.

Sunday Business Post

October 25, 2009

Shoppers try to cut grocery bills

Some 96 per cent of Irish shoppers are trying to cut their grocery bills, accoding to research from consumer website SaveAFewBob.ie.

Most consumers are shopping in more than one supermarket, switching to own brands for certain products, availing of special offers and making shopping lists.

The survey showed that 25-44-year-olds were the most value-conscious. Niall McHenry, managing director of SaveAFewBob.ie, said : “Our findings show consumers are going to great lengths to cutback on their grocery spend. They are no longer loyal to a single supermarket, but are willing to shop around. They are on the lookout for value, and are responsive to protional offers and bulk deals.”

Half of all consumers make a shopping list to keep their spending on track, and two thirds of people shop in discount supermarkets such as Lidl and Aldi.

Only 28 per cent of people surveyed said they would cross the border to buy groceries in the North.

herald am

October 21, 2009 Wednesday

96% cut back on groceries

Research by consumer website SaveAFewBob.ie has revealed that 96pc of Irish consumers are attempting to cut back on their grocery bills.

The majority of consumers are shopping in more than one supermarket, switching to own brand products, availing of special offers and drawing up shopping lists.

Survey results indicate that 25-44-year-olds appear to be most ‘value conscious’, while women employ more cost saving measures than men.

Niall McHenry, Managing Director of SaveAFewBob.ie, said: “Our findings show consumers are going to great lengths to cut back on their grocery spend.”

The survey showed:

# 85pc shop at more than one supermarket.

# 60pc have switched to own brand for certain products.

# 56pc decide where to shop based on special offers.

# 59pc buy in bulk to avail of discounts.

# 49pc make a shopping list.

# 64pc shop in discount supermarkets such as Lidl and Aldi to save money.

Research was conducted by independent market research agency RED C Research. Results are based on a nationally representative sample of 1,011 adults, with research conducted via telephone omnibus between October 5 –7, 2009.

Irish Independent

October 21, 2009 Wednesday

Consumers shop around to bag grocery bargains

CONSUMERS have responded to the downturn by cutting back on grocery shopping.

Large numbers of shoppers are switching to own-brand goods, buying in bulk and shopping in more than one store, the research carried out by Red C shows.

It found that 96pc of shoppers admitted they were finding ways to reduce the cost of their shoppings bills.

Women were found to be even more cost conscious than men, and those aged between 25 and 44 were more inclined to seek out bargains than older people.

A majority of those under the age of 44 said they had switched to own-brand goods, the research, commissioned by the website SaveAFewBob.ie, shows.

And 66pc of those were deciding where to shop based on the special offers.

Shoppers have also become more disciplined, with half of them making a shopping list before they head off to get the groceries.

Writing out a list in advance and only buying what is on it is considered a good way to avoid expensive impulse buys.

The survey found that a majority of shoppers are using more than one supermarket, with almost two-thirds buying in bulk to avail of discounts.

Eight out of 10 consumers also say they are conscious of trying to buy Irish to support Irish businesses.

This is a less significant factor for those aged 18 to 24, with only 60pc of these younger shoppers endeavouring to buy Irish.

When asked whether they would travel across the border to buy groceries, only 28pc agreed. This rose to 39pc among 18- to 24-year-olds.

Niall McHenry of SaveAFewBob.ie said: “Our findings show consumers are going to great lengths to cut back on their grocery spend.

“They are no longer loyal to a single supermarket but are willing to shop around. They are on the lookout for value and are responsive to promotional offers and bulk deals.”

A spokeswoman for the National Consumer Agency said its information was that consumers were deciding where to shop on the basis of price and no longer choosing a shop based on convenience.

She added that the agency’s price surveys showed the quickest route to the best prices is through shopping around and spreading your spend across a range of stores.

“The Irish retail scene offers more choice now than ever before, so keep your eyes peeled for special offers advertised in the press, on radio or even in shop windows,” she said.

- Charlie Weston

Irish Independent

Press release

20-10-2009

96% of consumers cutting back on grocery costs

Research carried out earlier this month by consumer website, SaveAFewBob.ie, has revealed that 96% of Irish consumers are attempting to cut back on their grocery shopping bills. The majority of consumers are shopping in more than one supermarket, switching to own brand for certain products, availing of special offers and drawing up shopping lists.

Survey results indicate that 25-44 year olds appear to be most ‘value conscious’, while women employ more cost saving measures than men. Commenting on the survey’s findings, Niall Mc Henry, Managing Director of SaveAFewBob.ie says:

“Our findings show consumers are going to great lengths to cut back on their grocery spend. They are no longer loyal to a single supermarket but are willing to shop around. They are on the lookout for value and are responsive to promotional offers and bulk deals.”

Key findings

* 85% shop at more than one supermarket

* 60% have switched to own brand for certain products. The 25-44 age bracket (67%) were most likely to change brands as a means of saving money

* 56% decide where to shop based on special offers

* 59% buy in bulk to avail of discounts.2 in 3 under 45 say that they try to take advantage of bulk deals

* 49% make a shopping list. The 65+ age group (56%) were the most likely category to draw up a shopping list

* 64% of people agree that they shop in discount supermarkets such as Lidl and Aldi to save money

Female shopping behaviour

* A slightly higher number of females (62%) as opposed to males (56%) buy in bulk to avail of discounts

* A greater number of females (64%) than males (57%) have switched to own brand for certain products

* More women (61%) than men (52%) decide on where to do their grocery shopping based on who has special offers

* Women (52%) are also more likely than men (46%) to make a shopping list

Attitudes towards buying Irish

* 80% of those surveyed said they make a conscious effort to buy Irish. This is a less significant factor for those aged 18 to 24 with only 60% of these younger shoppers endeavouring to buy Irish

* Only 28% of those surveyed agree they would travel across the border to buy groceries up North. This increases to nearly 2 in 5 among 18-24 year olds, with agreement declining with age

* People in the higher social class are slightly less likely (24%) to travel across the border to buy their groceries up North

Research was conducted by independent market research agency, RED C Research. Results are based on a nationally representative sample of 1,011 adults, with research conducted via telephone omnibus between 5th & 7th October 2009.

To view the survey results in greater detail, visit www.saveafewbob.ie

herald am

September 24,2009 Thursday

Consumers sacrifice good food and fashion

The recession is causing everyone to cut back in one form or another, and it seems that it is our vices and entertainment that are taking the biggest cuts.

When taxes were lower and the future seemed brighter, we were more than willing to splash out on a lavish meal or head to the pub. After the last Budget and with a similarly severe one on the way, people are bracing themselves to be hit hard in the pocket once again.

Consumer website saveafewbob.ie has just revealed the major changes to consumer behaviour over the last 12 months.

Dining out has been the biggest sacrifice of our nation of previously free spenders, down by 53pc.

Spending on the latest fashions comes next, with retailers facing a footfall drop of 50pc coming through their doors.

Next on the hit-list is buying coffee (40pc), followed by a reduction in spending on alcohol (38pc).

Smokers are taking the financial stress in different ways, with 16pc saying they are smoking less, but 7pc are smoking more.

Interestingly, a substantial number of survey participants continue to play the Lotto. In fact, 12pc are playing the Lotto more often than the same time period last year.

The survey is based on a nationally representative sample of 1,005 adults, with research carried out via telephone between September 5 and 7, 2009.

Irish Examiner

September 23,2009 Wednesday

Spending on luxury items falls by 40%

SPENDING on luxury items is down 40% as consumers cut back on eating out, visits to the hairdresser and shopping for clothes.

One in six people are smoking less than this time last year while two in five are drinking less, according to a survey on spending habits.

Women have cut back significantly, with two-thirds saying they have reduced the frequency of either clothes shopping or visits to the hairdresser.

The Red C survey conducted for consumer website, saveafewbob.ie, among 1,000 respondents, also found that just over half said they are now eating out less compared with this time last year.

Chief executive of the Consumer Association Dermot Jewell said these results show how price conscious shoppers have become. “Consumers are determined not to spend money if they don’t see value,” he said.

Half of respondents said they were shopping less for clothes than they were this time last year while one third claim to visit the hairdresser less often.

Two-in-five said they were buying less takeaway coffee.

Founder of saveafewbob.ie Niall McHenry said a frugal mindset has swept the nation. “Our research shows that Irish consumers are cutting back considerably on discretionary spend.

“Retailers, restaurants and other service providers are bearing the brunt of this recession. Today’s consumers are motivated to obtain value for money and if they don’t believe that they are receiving value they are voting with their feet.”

Figures released recently from the Central Statistics Office (CSO) found that retail sales fell 15% in July, mainly due to a 50% slide in car sales.

The figures showed big slides in the annual volume sale of household equipment, which was down 17%, and clothes, down just over 9%.

Bar sales were down about 10% and electrical goods down 9.6%.

Professor of marketing at UCD business school Professor Mary Lambkin said, however, that consumers are starting to spend again, but are still watching out for bargains. “There’s a sense that people are attempting to get back to normal life by eating out more and spending that bit more. However, they are now looking for the best value options.”

Prof Lambkin said in a recession people behave in a rational manner by cutting back on luxuries.

“People can postpone a haircut or buy less luxury items in the supermarket, but they won’t cut back on essential things such as basic food items or petrol if they use their car for work,” she added.

Sales of household appliances and furnishings will always drop sharply in a recession according to Prof Lambkin, who said sales of these products are down about 30% over the last year.

The Red C survey did also reveal that playing the Lotto has increased in popularity, with one in eight saying they are playing the Lotto more often than the same time period last year.

Sunday Times

September 20, 2009

Crunch creates no-frills shoppers

BYLINE: Niall Brady

SECTION: MONEY;FEATURES; Pg. 1

THE recession has produced a generation of virtuous shoppers who have cut their spending on alcohol, gambling and smoking, according to a new survey.

Indulging in vices and luxuries has plummeted, the survey of 1,005 consumers found. Respondents claim they have cut down on playing Lotto and on other betting and gambling, and make fewer visits to restaurants, fashion outlets, hairdressers and coffee bars.

Niall McHenry, founder of SaveAFewBob. ie, the consumer website that commissioned the research, said: “Consumers are cutting back considerably on discretionary spending. They’re motivated by value for money.”

The findings are supported by data released on Friday by the Central Statistics Office, showing a 15% slump in retail sales in the year to July, with cars, furniture, household equipment, bar sales and clothing among the items hardest hit.

The economic crash has also forced people into making sacrifices that have little to do with saving money. Darach Turley, a professor of marketing at Dublin City University, said: “In uncertain times, people come to the belief that one of the few things they can rely on is themselves.

“The desire for self-reliance is underscored by an increase in people doing their own home repairs, growing their own vegetables, and eating at home rather than going out. It’s cultivated frugality, cutting back not because they have to, but because they believe it’s the right thing to do.”

People risk making their lives more miserable than necessary, McHenry said, by making drastic cutbacks while overlooking simple, money-saving moves. “There’s no pain involved in switching to cheaper insurance, electricity or phone and broadband providers, yet it can save a lot of money,” he said.

Debt management should take priority for those in financial difficulties, said John Lowe, a financial adviser and author of The Money Doctor Finance Annual. “If you lose your job, or your working hours are reduced, the first thing to do is renegotiate your mortgage, asking to pay only the interest for six months, for example,” he said. Families should also try to save for future expenses. “Budgeting isn’t only about cutting back on current expenditure, it’s about building a rainy day fund for future expenses, such as Christmas or a few days’ holiday next year,” said Lowe.

He urged households to keep a money diary, itemising every item of expenditure for one month. “It’s the only way of learning where your money goes. Frivolous spending, such as the chocolate bar you pick up without thinking at the petrol station, will quickly be identified. I’m not a killjoy, but certain expenses must be curbed if you are going to make ends meet.”

The survey found that some people are engaging in “comfort spending” during the recession. While 26% of people play the Lotto less often, 12% are indulging more frequently in the hope of winning a million.

Sunday Business Post

September 20,  2009

Non-essential spending down

Emma Kennedy, Personal Finance Correspondent

Section: Loose Change

Almost 90 per cent of consumers have reduced their spending on non-essential items in the last year, according to new research.

A ‘vices and indulgences’ survey from consumer website SaveAFewBob.ie revealed that consumer behaviour had changed significantly in the past year. The survey looked at consumer spending on non-essentials, such as playing the Lotto, buying new clothes, eating out, drinking alcohol, buying takeaway coffee and so on.

‘‘Our research shows that Irish consumers are cutting back considerably on discretionary spend. Retailers, restaurants and other service providers are bearing the brunt of this recession.

Today’s consumers are motivated to obtain value for money and, if they don’t believe they are receiving value, they are voting with their feet,” said Niall McHenry, founder of SaveAFewBob.ie.

Some 87 per cent of survey respondents had reduced the frequency of at least one of the listed activities, while more than one-third of participants had cut their spending on half of the listed activities.

Press release

18-09-2009

Irish consumers get back to basics

Consumer website, SaveAFewBob.ie, has revealed that consumer behaviour has altered significantly within the past year. The Vices and Indulgences survey, conducted by RED C, details how consumers have re-examined their spending habits and cut back on non-essential items.

Many Irish consumers are no longer able to financially support ‘life’s little luxuries’ such as playing the Lotto, clothes shopping, eating out, drinking alcohol or buying take away coffee, amongst others.

Commenting on the survey findings, Niall Mc Henry, Founder of SaveAFewBob.ie says:

‘Our research shows that Irish consumers are cutting back considerably on discretionary spend. Retailers, restaurants and other service providers are bearing the brunt of this recession. Today’s consumers are motivated to obtain value for money and if they don’t believe that they are receiving value they are voting with their feet’.

The Vices and Indulgences survey reveals that 87% of survey participants indicated that they have reduced the frequency of at least one of the listed activities, while more than one-third of survey participants have reduced the frequency for at least 4 out of the 8 activities listed. Some key findings include:

• 53% of participants claim to be eating out less. This decrease in activity is especially prevalent among those aged 25-54, at 62%.

• 40% claim to be drinking alcohol less often. The decrease frequency is highest among the 35-54 age category with 46% claiming to drink less often.

• 16% claim to be smoking less. The number of individuals who claimed to smoke less often was higher among those under 35 (23%) and lower among those over 55 (7%).

• Half the population claim to be clothes shopping less often than they were at the same time last year. 55% of women and 44% of men are clothes shopping less frequently.

• One-third of survey participants claim to visit the hairdresser less often than this time last year, with this increasing to over 4 in 10 (43%) for females.

• 40% claim to purchase take away coffee less often than at the same time last year. For under 35’s the decrease is most evident, at 45%.

• 1 in 3 claim to have decreased frequency of either gambling/betting or playing Lotto compared to the same time last year.
Notably, eating out and clothes shopping are the areas of personal expenditure that have been most affected. Interestingly, a substantial number of survey participants continue to play the Lotto. In fact, 12% are playing the Lotto more often than the same time period last year. Arguably, a significant number of individuals have turned to ‘Lotto luck’ in the hope of escaping the realities of the recession.

The survey results also highlight what purchases the consumer views as either a luxury or a necessity. While gross consumption appears to have fallen by the weigh side, addictive habits such as smoking are apparently harder to kick.

Research was conducted by independent market research agency, RED C Research. Results are based on a nationally representative sample of 1,005 adults, with research conducted via telephone omnibus between 5th & 7th September 2009.

To view the survey results in greater detail, visit www.saveafewbob.ie

- Ends

Irish Times

August 15, 2009 Saturday

Is it RIP for Rip-off Ireland?

PAUL CULLEN Consumer Affairs Correspondent

SECTION: WEEKEND; Pg. 1

For a few mad years, Irish consumers and their money were easily parted. But now that the boom is over it is finally dawning on us that Rip-Off Ireland was a fact, not a slogan

EVERYONE HAS their favourite tale of Rip-off Ireland. Mine dates back a few years, when I called in to a well-known shop that installs kitchens just as an expensively-dressed woman flounced out. The owner was shaking his head: I tried to put her off, because I m run off my feet, but she insisted. I quoted her EUR 37,000 to get rid of her. The kitchen costs EUR 20,000. But she said: when can you start? .

But Rip-off came in all shapes and sizes in the bad old days, from sheds sold in Dublin 4 for six-figure sums to the 50 cent some shops charged for an extra slice of bread with your soup or a second biscuit with your coffee. A supermarket owner recently complained to me how, to satisfy suppliers, he had to sell well-known brands in his stores at twice the price charged in the UK: You d have the same packaging and the same soup from the same factory in France. The only difference was that the British pack was slightly bigger, and the Irish product was twice the price.

Back in the boom days, none of this mattered. Fools and their money were easily parted, but there was always more credit on tap. Property investment was a form of pyramid selling, and a new sucker was sure to turn up to take that dismal two-bed in Ballygoupwards or Bucharest off your hands at a hefty premium.

The credit card was king, says Niall McHenry of consumer website saveafewbob.ie. The buy now, pay later mentality was rife. There was a wealth effect with people spending based on the perceived value of their assets. But not any more. Shoppers are shopping around finally. Cosy business relationships have splintered. The banks have rolled down the shutters on feckless credit. Thrift is the new paragon. And all this happened before the recession turned money-saving into a necessity rather than a sport.

People are no longer blasé about accumulating debt. What s more, their wealth has diminished. The feeling now among consumers is that we are facing into a few years of pain. Many will be waiting years to get back to breakeven, says McHenry.

Now we revel in our value-consciousness. We outdo each other with stories of bargain deals. We haggle as we never did apart from in a Moroccan carpet factory. We try out goods in shops, then purchase them on the internet. As consumers, we don t get angry anymore we get even.

McHenry talks of a new paradigm among consumers expecting to get value for money. This mindset is not a fad. It is here to stay. For a whole generation of consumers mostly in their 20s, 30s and 40s, the repair job on their mortgage, investment portfolio or pension fund is going to take a number of years. They will be on a constant look-out for good value or trying to secure a good deal. That s why 4 per cent of the Irish grocery market moved North, until retailers in the Republic finally got the message earlier this year. Or why more than 200,000 electricity customers have switched from the ESB to Bord Gáis or Airtricity in search of handsome savings.

THE JOURNEY FROM Rip-off Ireland to Cheap Ireland is a long one and it s by no means finished. In 2005, the Consumer Strategy Report (CSR) commissioned by the government found that Ireland was the dearest country in the euro zone for food, soft drinks, tobacco and rent, and the second most expensive for alcohol, restaurants and pubs. Only this week, a CSO report said Ireland had the second-highest prices in Europe, at over 25 per cent more than the EU average. The CSO figures, however, dated from 2007 and 2008, before the new economic realities asserted themselves and consumers took matters into their own hands.

High prices were only part of the story. Massive consumer inertia presented retailers with huge captive audiences, regardless of the price or quality of their offerings. The public wanted what the public got because they didn t know any better. The majority of consumers found the area of consumer rights both complex and confusing, according to the CSR report.

Consumers refusal to vote with their feet was intimately tied in with weak regulation. Consumer protection equated to a few prosecutions against retailers for overcharging, or for cheating on weights and measures, while the big picture was lost. Consumer groups, run on a shoestring, were mere minnows against the power of giant corporations.

The other reasons for persistently high prices were well known; they included a lack of competition in many sectors, overly cosy relations between supposed business rivals and between government and business, and the booming economy, which taught us all the price of everything and the value of nothing.

Yet in spite of the grumbling about the patent unfairness of it all, nothing changed. Ireland regularly topped the charts internationally for cost of living. Even our best-known exports, such as Guinness or Kerrygold, cost less abroad than in their country of manufacture.

But then, some years ago, things did start to change. Slowly, at first.

The Ryanair generation started asking why it cost more to take a taxi to the airport than it did to fly to the Continent. Eddie Hobbs stoked the latent ire of consumers on rabble-rousing television programmes. Towns around the country started agitating for discount supermarkets. The first of the foreign invaders arrived in banking (Royal Bank of Scotland, Halifax) and retailing (Aldi, Lidl) to shake up domestic markets.

Near-continuous sales became the norm as department stores and other retailers switched over to a more American style of business. The internet opened up endless new possibilities and new choices for consumers.

Growing consumer power led the government to establish the National Consumer Agency (NCA) in 2007, which was given a raft of new powers to investigate business malpractice. The NCA has had a mixed time, but its shopping surveys undoubtedly concentrated the minds of consumers, retailers and Government on the Rip-off prices charged for groceries in the Republic.

The internet drove the new zeitgeist, by providing shoppers with alternatives to over-priced high street stores, a mine of comparative information and a growing number of consumer-oriented websites. The excesses of Rip-off Ireland were documented in loving detail on forums such as askaboutmoney.com and boards.ie, and afficionados set up specialist sites devoted to cheap eats , Lidl treats and the like.

Diarmuid MacShane set up ValueIreland.com six years ago, at the height of the Rip-off Ireland phenomenon: At the time, there was only one other consumer focused website around the boards.ie Rip Off Ireland forum still in place today.

In the past six years, many other websites with a consumer focus have come and gone but in the past two years particularly there has been a marked increase in the number of Irish consumer-focused websites I count upwards of 78 different sites today. This is brilliant for Irish consumers the more information they have to hand, the better they can decide how, where and when to spend their money wisely.

Niall McHenry is a more recent entrant to the internet, and his venture is driven to some extent by necessity. I lost my job 12 months ago, as did a number of my friends and colleagues. Other family members and friends had their hours reduced and their salaries pared back. Everyone was cutting back on their spending and becoming more conscious about obtaining value for money. I felt there was no website offering value conscious consumers the right mix of research, editorial and deals.

The traditional media has also responded to the new sentiment, with the appointment of consumer correspondents in many newspapers and the creation of specialist columns, such as the popular PriceWatch column in this newspaper.

It wasn t just that we changed our habits; our mindsets changed too. There were no red faces in the queue of shoppers driving into Sainsburys in Newry, in spite of suggestions in some quarters that cross-Border shopping was unpatriotic. Even comfortable middle-class shoppers started boasting about the value they found in German discount stores. (This week, I was invited to a dinner during which the host proudly announced that everything used in the meal had been bought in Lidl.) What started as a trickle of change became a dam-burst in the past year.

Homeware and clothing prices tumbled as outlets discounted heavily; mark-downs of up to 70 per cent were common during the January sales. A price war broke out among the big supermarkets, which have cut food prices by about 20 per cent since the start of the year. Increased competition in the electricity and phone markets encouraged consumers to switch in greater numbers than ever before.

Some parts of society have proved more resistant to change. The cost of education and medical services is actually going up, this week s CSO figures show. Insurance companies are pushing up premiums even though accident rates have fallen. It now costs up to EUR 60 for a 10-minute appointment with a GP, even when the purpose of the consultation might only be to obtain a prescription or a referral.

Last month, a survey by the Consumers Association of Ireland found that the cost of services such as dentistry and plumbing were on average 30 per cent higher in Dublin than in Belfast. These figures appear to bear out the recent assertion by the Tánaiste, Mary Coughlan, that some sectors had yet to feel the chill winds of economic reality she singled out engineers, architects, the legal profession, dentists and others by showing how they intended to reduce fees and charges.

Not surprisingly, the professions took umbrage. Architects pointed out that half of their number are currently unemployed, and engineers were similarly appalled. The Tánaiste was mistaken; we re facing an arctic gale, not a chill wind, says Ken Murphy, secretary general of the Law Society. All the evidence is that there is significant downward pressure on solicitors fees.

Even some food staples have resisted the downward trend in prices; lamb, bread, milk and butter have all increased over the past two years, the CSO figures show. The figures show that for people on the margins, the cost of some of these basic items hasn t changed a lot, says Lorraine Mulligan, a policy analyst with Siptu. The bulk of recent deflation is accounted for by reductions in mortgage rate interest, which obviously benefits only homeowners.

NOW THAT WE REall so value-conscious, are we better off? The astute shopper probably is; these days, every time I pick up a tub of infant formula for EUR 8.50 or so, I marvel at the savings before asking how it was that I paid EUR 15 for the same product for years in the bad old days.

But as Mulligan points out, there can be a major downside to the hunt for ever lower prices. It s all very well to get cheaper produce, but you also have to think about employment and local jobs. In the retail sector alone, economist Jim Power has claimed 100,000 jobs could go if the main supermarkets switch to sourcing cheaper products from abroad rather than buying closer to home.

Food scientist Prof Pat Wall of UCD has warned of the dangers of a race to the bottom in terms of price on the quality of the food we eat. The demand for ever-cheaper chicken, for example, may push producers to cut corners on food safety and animal welfare to meet the voracious demands of retailers. And while consumers may welcome ever falling prices of clothes, concerns have been raised on many occasions about the conditions under which workers in developing countries operate to produce them.

Whether it s Irish farmers or garment workers in the developing world, you have to pay the people involved a fair price as well as taking a close look at the margins being charged at the retail end, Mulligan says.

Lower prices are also the result, in many cases, of lower wages. Pay cuts of 5-10 per cent have been implemented in many private sector companies, and longer working weeks are the norm. So while there may be bargains out there, we ll have less time and less money to avail of them.

However, thrift and the search for value is now a necessity, not an option. As McHenry remarks, nobody is ashamed to look for a good deal because we are all in this together. Not just those who have been unfortunate enough to have lost their jobs.

Press Release

22-07-09

SaveAFewBob.ie survey reveals that 1 in 5 parents have recently negotiated a discount on their children’s crèche fees

SaveAFewBob.ie, Ireland’s one stop information shop for value-conscious consumers, yesterday announced that more than 20% of Dublin parents with children in crèches had successfully negotiated a discount in recent months. Also found was that 2 in 5 parents believe that Dublin crèche’s offer poor value for money.

The survey conducted online for SaveAFewBob.ie by Monitrack, an internet research company, interviewed a sample of parents from all demographics across Dublin. The survey measured parents’ opinions towards the crèche their children are attending, as well as their perceived value for money.

With one in four respondents paying more than €1,000 per child per month and almost three in four paying more than €750 per child per month, for many of these families the monthly crèche costs are the equivalent of paying a second mortgage. 2% are paying over €1500 per child per month, while 18% paid €500 to €750 and nearly 8% paid €500 or less.

“It is clear from our research that with regards to crèches, as with many services, customers do not have to accept the high prices that a small percentage are attempting to charge” SaveAFewBob.ie’s Niall McHenry believes. “Our research proves that crèche owners are sensitive to the financial position of parents. If you don’t ask you won’t receive. Ireland has a fantastic standard of childcare across the board and it makes good financial sense to seek better value.”

The survey also found that the overall level of satisfaction with Dublin crèches was quite high with 93% of respondents stating that they would recommend their crèche to a friend. Of those who had concerns the most notable were a lack of flexibility with regard to having children attending on a part-time basis and having to pay for the crèche even when the child was not attending. Turnover of staff was also a major concern.

The survey also discloses that most parents were not willing to compromise on price when it came to selecting the most suitable crèche for their child. The cost of sending their child to a crèche came well down the list when choosing a crèche. The most important factors which parents cited were location, their impression of staff and the quality of facilities. For the full listing in order of importance to parents see below:

1. Location
2. Impression of staff
3. Facilities
4. Opening hours
5. Ratio of carers to children
6. Cost
7. Provision of meals/nappies
8. Other

“Running a crèche professionally is an expensive business for owners with high rental and labour costs. There is only so much wiggle room that crèche owners can afford in negotiating with parents,” said Niall McHenry of SaveAFewBob.ie. “The government clearly needs to help out through providing some form of tax credit by subsidy to parents that work. This is the only way that a fair agreement on price can be reached that will satisfy both the crèche and the parents.”

To view the full survey results visit the site http://www.saveafewbob.ie/

-ends-

Press Release

20/7/2009

SaveAFewBob.ie launches informing Irish consumers how to spend less

The team at SaveAFewBob.ie, Ireland’s one stop information shop for value conscious consumers is pleased to announce the launch of their new website www.SaveAFewBob.ie this week. The site shows Irish consumers how they can obtain better value on everyday spending by providing research, reviews and relevant monthly promotions.

This website, which is free to use, features independently commissioned research indicating what Irish consumers are currently paying for a particular product or service and determines whether they are getting value for money (this month’s topic is crèche costs).

Visitors to the site can expect to read value editorial; quality articles offering expert opinion and impartial advice from well known personalities such as; consumer chef and star of RTE’s ‘Heat’ programme, Kevin Dundon, former model and beauty expert, Laura Bermingham, Ireland’s foremost technology journalist, Adrian Weckler of the Sunday Business Post and Personal Finance journalist, Charlie Weston of The Irish Independent.

In addition carefully selected ‘Deals of the Month’ advertise relevant and attractive promotions bringing bargains to people when they are needed most.

“Governed by our ‘Know More, Spend Less’ philosophy, we believe that an informed consumer makes better purchasing decisions” states founder, Niall Mc Henry. “Our goal is to provide information to consumers on where they can obtain best value without sacrificing quality.

Explaining his decision to set up this business, Mc Henry says he felt that there was a gap in the market for such a site:

“I felt that there was no website offering ‘value conscious’ consumers the right mix of research, editorial and deals. What we wanted to do was to pull this information together to create a portal that informs consumers how they can save a few bob.”

To view the site visit http://www.saveafewbob.ie/

-ends-

Irish Examiner

July 16, 2009 Thursday

Householders waste 35m of energy on ’standby’

TVs, DVD players, stereos, computers and microwaves are consuming vast amounts of energy when they are not fully turned off and leaving them on is costing the average household up to 40 annually.
Sustainable Energy Ireland (SEI) has revealed that appliances left on standby are wasting 30 watts of electricity every hour, which over a year equates to the same amount of energy as 220 loads in the washing machine.
Households can also save cash by cutting down their use of appliances.
The cost of operating appliances can vary from 116 a year for a dishwasher to 90 for a fridge freezer.
Hairdryers can cost around 18 a year while a hair straightener sets a household back around 30 a year.
A blender costs an average of 9 a year to run while a carving knife costs around 3.20 a year to operate if used for one hour every month.
Research conducted by consumer website, saveafewbob.ie found that the cost of monthly gas and electricity bills is a major concern among Irish consumers, especially those with young families.
Managing director of saveafewbob.ie, Niall McHenry said: “I have no doubt that consumers could save hundreds of euro each year on their electricity bills and also cut back significantly on their gas bills.”
A spokesman for the ESB said it is impossible to estimate how much the average household spends on the use of appliances each year but said the average electricity bill has dropped by 15 over the last 12 months to 140.
An SEI spokesman said: “When buying appliances, look for the energy label and choose the most efficient one which suits your needs and your budget. And then make sure you use it efficiently.”
SEI estimates that buying energy efficient appliances could save households up to 100 a year.
It said simple measures such as switching off lights when you’re not in the room, turning the thermostat down by one degree and closing doors and windows to prevent heat loss, could mean big savings for householders.
Figures from SEI show that over the past 20 years, there has been an increase of more than 1,200% in the number of homes with a microwave while there has been an increase of 559% in the number of homes with a dishwasher. Also the number of homes with two or more TVs has risen by 248%.
Irish householders use 27% more energy per dwelling than Britain and we stand at 36% over the EU average.

Irish Independent

July 16, 2009 Thursday

A NEW website that promises to help consumers seek out the best value has been launched. SaveAFewBob.ie aims to be a one-stop information shop for value-conscious consumers.

Business World (Digest)

July 16, 2009 Thursday

New consumer Website launched;

HIGHLIGHT: Entrepreneur, Niall Mc Henry, has launched a new consumer products and services price comparison Website, saveafewbob.ie.

Entrepreneur, Niall Mc Henry, has launched a new consumer products and services price comparison Website, saveafewbob.ie.
The new site aims to help to provide Irish consumers with the chance to find bargains on everyday spending by providing research, reviews and relevant monthly promotions.
This Website, which is free to use, features independently commissioned research on what Irish consumers are currently paying for a particular product or service and determines whether they are getting value for money.
Its first month’s topic is childcare costs. The Site will bring in well known personalities such as; consumer chef and star of RTE’s ‘Heat’ programme, Kevin Dundon, former model and beauty expert, Laura Bermingham, Ireland’s foremost technology journalist, Adrian Weckler of the Sunday Business Post and Personal Finance journalist, Charlie Weston of The Irish Independent. “Governed by our ‘Know More, Spend Less’ philosophy, we believe that an informed consumer makes better purchasing decisions” states founder, Niall Mc Henry. “Our goal is to provide information to consumers on where they can obtain best value without sacrificing quality.”

Irish Independent

July 21, 2009 Tuesday

Getting your money’s worth

A NEW website that promises to help consumers seek out the best value has been launched.
SaveAFewBob.ie aims to be a one-stop information shop for value-conscious consumers.
The site shows Irish consumers how they can get better value on everyday spending by providing research, reviews and relevant monthly promotions, founder Niall Mc Henry said.
This free website featuresindependent research indicating what Irish consumers are currently paying for a particular product or service and determines whether they are getting value for money.This month’s topic is creche costs.
Many celebrities contribute to the site including former model Laura Birmingham. See www.saveafewbob.ie.

Irish Independent

July 22, 2009 Wednesday

Parents haggling in bid to cut EUR1,000-a-month cost of a creche

MORE parents are haggling with creche owners to reduce their monthly childcare costs.
But one in four are still paying more than EUR1,000 a month per child in fees, according to a survey. That means a taxpayer, at the higher rate, would have to earn over EUR2,000 a month just to cover childcare costs while they were at work.
The survey for consumer website www.saveafewbob.ie found that four out of 10 parents in Dublin did not feel they were getting value for money at their creche, even though the cost of childcare was often equivalent to paying a second mortgage.
And, unlike a mortgage, there is no tax relief on childcare costs, with the Government’s contribution via child benefit likely to be slashed in the coming months.
Nearly 27pc of parents surveyed in the capital said they were paying EUR1,000 to EUR1,250 per month per child for a creche place, while 46pc paid between EUR750 and EUR1,000.
The survey was carried out by internet research company Monitrack earlier this month among a sample of 86 creche users widely spread throughout Dublin city and suburbs.
It found 2pc of respondents were paying more than EUR1,500 per child per month, while 18pc paid EUR500 to EUR750 and nearly 8pc paid EUR500 or less.
However, many had been able to negotiate a discount because of the current economic downturn, with 22pc saying that they had done this inrecent months.
Despite the huge monthly expense, price was not the primary consideration for most parents when choosing a creche, as it came well down the list after location, impression of staff, facilities, opening hours and ratio of carers to children.
The high price would not deter 93pc of those surveyed from recommending their creche to a friend.
Some 60pc of parents said they did feel they were getting value for money in their creche, but even those who didn’t tended to blame the Government rather than the creche provider.
One parent said: “I don’t believe the business is fleecing us or turning a huge profit but better Government subsidies are required.”
Website operator Niall McHenry said that most parents seemed to feel that creche costs were high because of the high labour input needed, and suggested the Government should subsidise the cost to parents.
The most notable concerns expressed were a lack of flexibility with regard to having children attend on a part-time basis and having to pay for the creche even when the child was not attending. Turnover of staff was also a major concern.
The cost of childcare has risen by over 6pc in the last year, even though general prices are falling throughout the economy, the latest Central Statistics Office figures show.
Most children in Ireland are cared for by childminders, with creches often too expensive an option, particularly when there is more than one child in a family requiring care.

Irish Examiner

July 30, 2009 Thursday

Childcare costs rise by more than 15% in two years

Two reports released by the Central Statistics Office and consumer website Saveafewbob.ie reveal how much more people are now expected to pay.
According to the CSO report into childcare costs, in the second quarter of 2007, the average cost of childcare in that period was 144 per week or 576 per month nationwide, and 192 per week or 768 per month in Dublin.
Fast-forward to 2009 and the survey of childcare costs in Dublin by Saveafewbob.ie shows parents pay an average of 886 per month, up 15.36% from 2007.
It also found that 29% or more than one in four of parents were paying over 1,000 per month.
Just 25% of parents were paying less than 750 per month.
As well as cost, survey respondents were asked about their satisfaction with creche services and about the reasons why they chose a certain facility.
More than 60% did say they believed their creche was good value for money and 93% of respondents said they would recommend their creche to a friend.
However, it also showed parents had started looking for price reductions given the current recessionary environment.
More thane one in five respondents had managed to negotiate a discount.
Childcare representatives claim that creches across the country are facing closure because the recession has seen both a drop in the number of children using their services, while bills for running those services are increasing.
As a result, they claim there is no scope for reducing prices for parents who are faced with massive outlays each month.
One mother with two children attending a creche told the online survey: “It makes no financial sense… I’m basically working full time to pay for our creche costs.”
Another said: “I don’t believe the business is fleecing us or turning a huge profit but better government subsidies are required.”
Meanwhile, childcare costs and course fees are the biggest concerns of unemployed people trying to return to education, according to a helpline operator overwhelmed with enquiries in the last six months.
Half of those seeking information about courses and entitlements from national adult learning organisation AONTAS have not been to school or college for 20 years, while only a quarter had undertaken any training or courses in the past decade.
More than two-thirds of the 4,245 calls to the information service in the first half of the year up nearly 1,000 on the same six months last year were men and three-quarters had only recently joined the list of unemployed.

The Sun

July 31, 2009 Friday
Edition 1;
Ireland

Childcare price hike

WORKING parents are being hit by skyrocketing childcare costs - with prices soaring by 15 per cent in two years.
A new survey from website Saveafewbob.ie shows families in the capital are forking out an incredible ‘886 a month for the service.
This is up almost onesixth since 2007, when workers paid an average of ‘576 monthly for creches and nannies - or ‘768 in Dublin.
The study also found more than a quarter are splashing out a walletbusting ‘1,000-plus.
And just 25 per cent of parents were paying less than ‘750.