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22
...the price
differential
between
stamps and
franks is
expected
to widen
further...
In February 2011, Neopost upgraded
its entry-level franking machines
with the launch of the AutoStamp2,
which is sold through telesales and
online channels.
The machine boasts three major
enhancements: the inclusion of an
integrated 2kg scale for a neater, more
space-efficient design; a network
connection for quick and easy software
downloads and postal re-crediting 24/7;
and smart technology that gives customers
the information (and validation) needed to
reclaim VAT paid on certain of Royal Mail’s
guaranteed and recorded delivery services.
On their own these enhancements
would be worthy of an Editor’s Choice
award. But are they enough to have
inspired the 50% year-on-year increase in
Autostamp sales that Neopost enjoyed in
2011? Probably not.
A much more compelling reason for
the rise in demand (and the selection
of Autostamp2 as an Editor’s Choice) is
something outside Neopost’s control – the
price of 1st and 2nd class stamps.
In April 2011, the price differential
between the cost of a frank and postage
stamp grew wider as Royal Mail applied
larger price increases to stamps than
franked mail. With savings of at least 7p
on every 1st class letter, 8p on a 2nd class
letter and up to £1.19p on a 2kg parcel, an
Autostamp2 costing from £16.99 (ex VAT)
per month became an even more cost-
effective option for organisations such as
small businesses, schools, colleges, dentists
and GP surgeries.
Add in all the other benefits of
franking, such as a more professional
appearance, opportunities for on-envelope
promotions, always applying the right
postage, better use of time (i.e. not having
to travel to or queue at a post office) and
detailed reports on postal expenditure,
and it is easy to see why businesses that
had not considered franking before were
attracted to Autostamp2.
In fact, Neopost calculates that the
postage savings that can be made on
sending just 15 items per day would offset
the rent and running costs of Autostamp2,
so all the benefits of convenience,
1. Pricing in Proportion: save up to 40%
Royal Mail prices vary according to the size, thickness and weight of an item. With a standard letter costing
as much as 40% less than a large letter, make sure you send items in the most cost-effective format.
2. Switch from stamps to franking: save 26%
Royal Mail offers big discounts for users of franking machines. At current rates, they can save at least
7p on every 1st class letter, 8p on every 2nd class letter and up to £1.19 on a 2kg packet.
3. Monitor spending and control costs!
Monitor mailing costs and analyse spend for internal and external re-charging purposes. Neopost
simplifies this process by providing free online account management with every franking machine.
4. Clean your data: save up to 23.5%
Improving the quality of your address files will help reduce the waste associated with returned mail. It
could also help you qualify for CleanMail Advance discounts of 16% for batches of as few as 500 letters.
Volume discounts increase possible savings to 23.5% for businesses sending 25,000 letters per mailing.
5. Rationalise and manage mail
Optimise and manage mail content before you print it. Combine mailings to the same recipient to reduce
the number of mail pieces or add Royal Mail barcodes and pre-sort electronically for additional postage
discounts. Neopost’s Printmachine software can deliver both of these benefits.
productivity and a more professional image
are effectively free.
Since the launch of Autostamp2, there
have been more developments in the
postal market that are likely to add to
its appeal, notably OFCOM’s proposal to
give Royal Mail greater freedom in setting
the price of 1st class and some 2nd class
stamps. With new postal tariffs coming into
force in April, the price differential between
stamps and franks is expected to widen
further, making Autostamp2 even more
attractive for first-time users.
To help businesses assess the
advantages of franking, Neopost is offering
free 30-day trials of Autostamp2.
To find out more, please visit
www.neopost.co.uk/bifeb.
Franking for all
Neopost Autostamp2
Editor’s Choice: Business Info Issue 103
How to Cut Mail Costs – 5 Money-saving Tips
Editor’s Choice Awards
Business Info 103
What we liked:
•
integrated weighing scale
for smaller footprint
•
LAN connection for postage
re-crediting, new pricing and
software downloads
•
smart technology lets you
reclaim VAT on certain Royal
Mail products
•
compelling cost advantages
vs. postage stamps
•
franking machine
convenience
•
neat design