businessinfomag.uk
magazine
12
On March 27, the price of a First Class
stamp went up by 1p to 65p; the price
of a Second Class stamp rose by the
same amount to 56p. Prices have also
gone up for franking machine users.
For Standard and SMART franking
machine users, First Class letters now
start at 57p, Second Class letters at
41p and an International Standard
letter at £1.07. First Class small parcels
and Second Class small parcels start at
£3.12 and £2.62 respectively.
For users of Royal Mail Mailmark
franking machines, First and Second
Class letters now cost 55p and 38p
respectively. Rates for International
Standard letters and small parcels are
the same as for Standard users.
The savings are now as follows:
Mailmark has always been promoted
as the best value option.While this
is still the case, the current price
differential is less than before the tariff
changes. Previously, Mailmark users
would have saved 13p on a First Class
letter versus using stamps; they now
save 10p.
Ryan Higginson, VP SMB at Pitney
Bowes, explains that while the discount
may be less, Mailmark franking still has
many benefits: “The discount is less than
previous on 1st Class, but we still enjoy
a 10p saving versus stamped mail and
an impressive 18p on 2nd class mail,
so franked mail still delivers significant
savings to our clients. The saving reflects
Royal Mail’s commitment to providing
value to our clients by continuing to
offer best value with postage meters.
“If you use a franking machine or
meter for your post, you’ll benefit
from substantial price advantages over
stamped post, and you’ll be improving
Mailmark still good value say franking machine suppliers
The gap narrows
accuracy whilst removing the guesswork
of postage costs, as well as removing
the likelihood of postal surcharges.
There are even greater savings to be had
with Mailmark meters like Connect+
and DM60, as Royal Mail guarantees
that Mailmark postage discounts will
always be the lowest available franking
prices, saving up to 3p per letter in
comparison to standard franking. Meters
eliminate the need to queue at a post
office and boost the professional look
of your business mail, as you can print
a company logo or message on every
envelope.”
He added: “The digitally connected
world of commerce is bringing
opportunities to businesses of all sizes,
and mail operations are no exception.
When postage
rates change,
no manual
programming
is required:
digital systems
are always
connected,
so rates can
be sent to the
meter
Under pressure
Commenting on Royal Mail's
price rises, Dr Paul Simmonds,
a Senior Teaching Fellow at
Warwick Business School, said:
"The increases come as the Royal
Mail is under pressure to improve
its performance. Its shares are
currently trading at 410p, well
below their post-privatisation
peak of 604p; they have also
declined since their May 2016
peak of 541p.
“Royal Mail does face a
challenging business environment.
The Group half-year profits to 25th
September 2016 were 5% lower at
£320m and they increased their cost
savings target to restore profitability.
Hitherto they have been successful
in achieving significant cost
reductions while avoiding damaging
and costly industrial action but now
they face difficult negotiations with
unions over further cost reduction
programmes and also pensions.
“There was a significant drop
following the January 2017 trading
update, which said total letter
revenues had dropped 5% in the
nine months to 25th December
compared to the same period in
2015. On the positive side, revenue
from parcels had increased 3% on
volumes that were up by 2%.While
the 6% reduction in addressed letter
volumes wasn’t surprising – it’s a
long-term trend and shows no sign
of abating – there has also been a
significant fall in advertising (junk)
mail where volumes and revenues
had previously been holding up
reasonably well.”
Standard franking machines
Mailmark franking machines
8p saving on 1st Class Letters compared to
stamped mail
10p saving on 1st Class Letters compared to
stamped mail
15p saving on 2nd Class Letters compared to
stamped mail
18p saving on 2nd Class Letters compared to
stamped mail
8p saving on 1st Class Large Letters compared to
stamped mail
13p saving on 1st Class Large Letters compared to
stamped mail
8p saving on 2nd Class Large Letters compared to
stamped mail
11p saving on 2nd Class Large Letters compared to
stamped mail
Compared with analogue postage
meters, digital postage meters are faster
and more reliable. They also provide
flexibility as they'reWifi-connected, so
there's no need to plug and unplug your
meter as you move offices or sites. And
when postage rates change, no manual
programming is required – digital
systems are always connected, so rates
can be sent to the meter at any time
and only have to be installed.”
LennyWood, marketing manager at
Frama UK, points out that the increase
in prices is in line with the Consumer
Prices Index (CPI), which rose by 1.8%
in the year to January. “Even with these
changes, the franking medium remains
one of the most cost-effective and
efficient methods for businesses to send
physical post. In addition, Mailmark
continues to offer the best value tariff,
with an additional saving of 2p and
3p over standard franking on first and
second class letters.”
LennyWood,
marketing
manager,
Frama UK
MAILING
