Member Article

Royal Mail increases price of postage

Last week, Royal Mail announced that it would be increasing the prices of its postage stamps. From 30th March 2015, the cost of a first class stamp will go up by 1p to 63p and the price of a second class stamp by 1p to 54p. The news has further highlighted the benefits of Royal Mail’s MailMark Franking Machines, with users now gaining further discounts when compared to normal postage. “This price increase may be lower than prior years, but with so many businesses still relying on post to communicate with customers, it all adds up – particularly for small and medium businesses (SMEs),” said Andrew Mackenzie, marketing director at mail solution specialist Neopost. “In a time of increased overheads, another climb in the price of stamps is simply putting growing companies under more financial pressure.

“However, there is an option available for businesses that wish to minimise the impact of this price hike,” Mackenzie continued. “When Royal Mail introduced MailMark franking machines last year, it provided a much more cost-effective alternative to normal postage, and is good example of how investing in technology can empower smaller businesses to maintain control of their costs. For example, under new franking machine tariffs, postage costs will be as much as 33 percent less for a second class letter and 19 percent less for a first class letter – meaning a small business sending as few as eight letters a day could save money by switching from stamps, even when the franking machine rental and supply costs are taken into account.

“By upgrading or investing in new generation MailMark technology, businesses will experience a more efficient postage process, enabling them to spend their time and capital on other business-critical activities.”

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