With stamp prices set to leap again and VAT being introduced to more services, franking machine technology is the natural way to save businesses money.
20% in VAT from April 2012
Yet more of Royal Mail’s retail services will be subject to VAT from April 2012, meaning a 20% price hike for businesses choosing Clean Mail, Royal Mail Heavyweight and MailSort products, as well as express and tracked services, and some international postage.
Franking Machines to the rescue
Franking machine companies such as Pitney Bowes and Neopost are producing machines with 'smart meters' to keep costs down despite the VAT introduction.
Franking machines show reports for each postal transaction using smart meters that calculate postage including VAT. These reports allow companies to claim back the 20% VAT.
Franking machines that use smart meters come approved by Royal Mail, who prefer dealing with franked mail to stamped, as it makes their operations more efficient too.
Smart meters have been available for years but their value is becoming increasingly apparent as VAT is applied to more services.
Saving money with franked mail
The rise in stamp prices already makes franked mail around 30% less expensive. The cost of stamps is set for a significant increase later this year, and combined with the VAT development in April the gap in price between franked and stamped mail will widen.
Franking machine companies work with Royal Mail to make paper post affordable for businesses, and smart meter technology is one example of how they integrate accounting functions into franking mail.
Franking companies such as Pitney Bowes and Neopost invest heavily in innovation to develop machines offering the best all-in communications support for businesses.
