Royal Mails increase the price of postal charges from Monday 27th March.

Does this increase affect  clients at our Virtual office in Regent Street, London – Fortunately NO .

Will it affect future clients – also NO

This is because our SIMPLY MAIL FORWARDING & OVERSEAS MAIL FORWARDING accounts will protect you from these price increases as our packages include mail forwarding within the set monthly charges.

So how much has the charges increased ?

A first-class stamp will cost 65p a second-class stamp will cost 56p (both increasing by one pence),

a large first-class letter will be 98p (an increase of 2p) and a large second-class letter will be 76p (an increase of 1p). Cost of sending packages will increase as well.  Royal Mail has since said that the reason for this is “to help ensure the sustainability of the universal postal service”.  See price list:-

http://www.royalmail.com/sites/default/files/Royal-Mail-Our-Prices-March-2017.pdf

 

stamps

It is no surprise that the traditional form of letter sending through the highly recognisable red post boxes that we see round every corner has been in decline since the rise of; computers, the internet, email and faxing, as well as the UK’s recent decision to remove itself from the EU. Thus the traditional forms of communication are being penalised because of it, whilst the modern entities begin to take over.

UK, London, Dean's Yard, Post Box

However, is this 1 or 2p increase really a big deal?

One could argue no, not for those who occasionally and individually send mail, for example the occasional birthday card. But for companies and corporations that send mail regularly, such as mail order companies whom may include free delivery in their offer to attract more customers, this does add up and can equate to quite a percentage of their outgoing funds. This money could effectively be spent elsewhere to create a higher profit.

We spoke to Neil Giller of http://www.centraldirectmail.com/  he said “this increase affects our clients on price wise, as a result of this we use alternative mailing distribution companies which will keep the relative costs down for our clients” he continued saying “this means that Royal Mail are less competitive and thus leaving themselves more exposed to potentially losing more business.”

In support of his clients he said “It also means that we have to monitor our margins for our clients as they look to reduce the size of their mailings and from the first class to second class options again to keep their costs down, again this increase from Royal Mail may have an impact on the volumes Royal Mail may carry as a result of constant increases”.

In summary he advised – “Small margins add up, where we were sending 10,000 items for a client a few years ago, now the same 10,000 derives a much small margin for us, thus we need to look at alternative methods of distribution”.