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Royal Mail
has kept the
prices for their
franked mail
competitively
low in a bid
to encourage
business
customers...
Neopost has launched a free
postage savings App. This new
and unique App calculates the
annual savings of a business
if they switch from stamps to
franking their mail. It makes
even more sense now to switch
from stamps to franking and
Neopost’s handy little
App will highlight
exactly how much
money a business
can save in a year
by making that
change. To download
this new and exciting postage
savings App visit iTunes.
www.neopost.co.uk
20
| p2p Magaz i ne | Summer 2012
01732 759725
MAILING
The price of post
According to figures from The Mailing Room; Britain’s small businesses
could be paying on average, almost £2,000 a year to post their mail,
after record stamp price hikes by Royal Mail. This equates to an extra
£546 a year for the average SME.
Totalpost Services Plc warns that the
increase in the cost of postage stamps
could deliver a negative impact to small
businesses across the country. Managing
Director David Hymers MBE believes
that the price hike of 14p for both first
class and second class stamps will impact
many businesses much more than they
may be prepared for.
“Businesses of all shapes and sizes
will be affected by this increase and
need to be well informed of the cost
implications for their overheads,” he
says. “Even looking at average business
postage rates of twenty items a day, the
increase would equate to an additional
£800 a year, a rise of around 29%. This is
a significant amount for a small business
to be aware of, especially during a double
dip recession.”
As one of the UK’s largest suppliers
of quality compatible remanufactured
franker cartridges, Totalpost believes
the stamp price increase will see more
businesses move to using franked letters.
“We have seen a significant increase in
enquiries about our franking machines,
especially from SMEs, which we feel has
been due to businesses looking for a
viable alternative to using stamps,” says
Hymers.
“As franking offers discounted postal
services, the cost savings compared to
stamps can equal around
28-30%. Even for smaller
From 30 April, the cost of a first class
stamp was increased from 46p to 60p
and the price of a second class stamp
went up from 36p to 50p. Large
letters increased from 75p to 90p for
first class and from 58p to 69p for
second class.
Whilst the volume of mail being sent
is falling as people and businesses switch
to digital communication, it still remains
an essential part of everyday life and as
such, these price hikes will impact on
many.
According to The Mailing Room’s
database of active customers with
around 10 employees, the average client
sends on average 15 letters per day. This
equates to 75 letters a week, costing
£37.50 per week (if each letter was sent
using a second class stamp) which totals
£1,950 per year.
businesses that only send around
fifteen items a day this means that any
expenditure from purchasing the new
machinery is negated within a matter of
months.”
George Bevan, Managing Director at
The Mailing Room, agrees, “Royal Mail
has kept the prices for their franked mail
competitively low in a bid to encourage
business customers to pre-pay for their
postage. The franking price for a first class
letter is 44p and only 31p for a second
class letter.”
For businesses still using stamps to
send out their mail, franking is a cheaper
and convenient alternative. Franking
machine users receive a discount on
every item of mail sent, saving at least
16p on every 1st Class letter, 19p on
every 2nd Class letter.
“Using a SMART franking machine
allows business customers to access all
Royal Mail’s services at a single point and
at a discounted rate,” says Chris Hayes,
General Manager at mailing solutions
specialist Frama.
“This latest round of price increases
will undoubtedly impact on the number
of businesses switching to franking
machines.” And it’s not just the cost
savings that appeal. Franking machines
can also save time, transforming time
intensive tasks such as making trips to
the post office and applying stamps by
hand, into an easy, efficient process.”
www.themailingroom.com
www.totalpost.com
www.frama.co.uk
David Hymers
MBE, Managing
Director
Totalpost
Services Plc
Neopost IS-440 Franking Machine