Postage increases. . . time to plan ahead
For most organisations an increase is usually a fairly consistent percentage rise across the board of services or products supplied.
But when I visited my local post office recently Les, one of our friendly counter staff, handed me a copy of the UK Post Office’s new prices leaflet and expressed surprise at some of the increases being made.
The price uplift ranges from 8.3% to 17.3% (I only checked the First and Second class rates).
You can download a PDF of the price guide at Pricing Made Easy
The 17.3% hike is on the First Class Large Letter, which is increasing from 52p to 61p for the entry level (i.e. up to 100g in weight).
I guess it could still be classed as good value, considering the size and weight of the letter you can send but if you are planning to send out a mailing of thousands, or even just a few hundred packages, the increase will create a hefty burden on your postage budget. Not something you need right now, especially if you are one of the smaller businesses struggling to keep going.
Planning Ahead
You can plan ahead and keep a tight hold on your postage budget. Here’s how…
It is worth remembering that first and second stamps do not show the cost of the stamp… they simply show the designated class: First or Second. In addition you can use the current value of these stamps to make up the postage required on other letters, packets or parcels.
So - if you buy stamps rather than using a franking machine or taking your packages to your post office and you know you are going to need stamps for a mailing campaign after 6th April 2009 (when the new charges take effect) - you could save by using a little forethought.
Buy a stock of designated 1st and 2nd class stamps before 6th April. You’ll still be able to use the stamps after 6th and they will be taken at ‘face value’ - sufficient for first or second class postage or that amount towards the overall postage required.
That means on large letters, sent first class, you will save a considerable - and welcome - 9p per letter for any you send out after 6th with a stamp purchased before the 6th April!
Getting Your Stock
You can purchase stamps - in sheets of 100 stamps - online with free delivery, direct from Royal Mail, provided your order value is at least £35. You can also get rolls of stamps in higher quantities; 500, 1000 and 10000. Visit www.royalmail.com and use the Shop link in the bottom panel.
Of course the downside is you’re spending in advance but - if you have the cash available - I doubt you would get between 8.3% and 17.3% return on your money if you left it in your bank!
And it means your mailing campaigns could still go ahead.
~ Carol Bentley
24th March 2009 at 10:52 am
Timely advice for us, Carol, thanks.
Last time Royal Mail increased the prices we did the same - invest in sheets of stamps.
As for value for money: the UK has still the lowest postal costs in Europe!
Karin H. (Keep It Simple Sweetheart, specially in business)
24th March 2009 at 11:21 am
This is always good advice to buy like this, but also superdrug were offering 10% off on stamps as well - not sure if its finished yet but worth checking out.
If you are doing regular post some of the best thing is to look at postage paid impressions, or franks - really best only if you’re sending invoices or are sure it won’t dent your response as these tend to be 2p cheaper than stamps as well and Royal Mail will happily supply you with a prepay account.
All the best!
Phil Hutchinson
24th March 2009 at 4:02 pm
The U.S. Post Office is also increasing prices on May 11, 2009. Americans can purchase “forever” stamps which always have current price in effect for a first class 1 oz. letter. Buying them before the price increases 2 cents will save people money.
25th March 2009 at 1:04 pm
Phil: thanks for the additional info - I’m sure it will help.
JLibbey: thanks for the helpful info for my readers in the US. It’s great to be able to give them an advance reminder too.
27th May 2010 at 9:16 am
Fortunately franking machines help to save time when it comes to arrange posting a large quantity of items.
Postage prices will always continue to increase while there is pretty much only one leading postage/shipping company in the country.
27th May 2010 at 11:22 am
Hi Don,
you have a good point - franking machines do save an enormous amount of time when you have a large mailing going out. However, from a direct marketing point of view, I still maintain that live stamps generate a higher rate of response. See my post Lets be frank about stamps
~ Carol