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The Royal Mail have increased postal rates by around 30%, the biggest ever price hoik in its history. Expert Market show how much cheaper metered mail is, and why a franking machine might be a good investment.
Hold onto your hats!
The 30th April will see the biggest price hike ever, making stamped mail more expensive than ever and franking machines a no-brainer.
Raising prices is The Royal Mail’s way of trying to reduce the mega losses of recent years. Letter senders are effectively looking at a 30% rise in costs.
Stamped mail
1st class - 46p - 60p
2nd class - 36p - 50p
Franked mail
1st class - 39p - 44p
2nd class - 28p -31p
SME’s (Small/Medium Enterprises) that send items by post will have to reassess their mailroom economy or see outgoings spike by 30% - costing potentially thousands of pounds.
Save 40% On Mail - a watertight case for Franking Machines
Under 2011 postal rates, franked mail cost 30% less than stamped mail. With the 2012 Royal Mail postage rate hikes that basic savings rate has rocketed to something more like 40%, and the margins widen even further when you explore how the many extra functions of a franking machine can make your operations cost-effective.
“Metered mail… has become increasingly attractive, financially”
Phil Hutchison, Managing Director of Pitney Bowes, on the advantages of a franking machine in the light of the new postal rates:
“You never run the risk of underpaying, which can be costly to businesses, particularly with administrative fees moving to 80p for every underpaid item, plus the underpayment amount.”
Franking machines are equipped with smart meters, allowing you to pay precisely for your mail and claim back VAT on business services.
Never overpaying or underpaying for your mail saves you money and time, and is part of the main streamlining function of a franking machine: keeping track of your accounts, your mailing history, and assigning individual mailing codes to specific types of outgoing mail.
In the past franking machines had a reputation for being expensive but they’re currently more affordable than at any time, both to buy and especially to rent. Rental can cost as low as £15 per week, and if you know your mailing requirements it should be simple to see the savings.
