Royal Mail has announced a price increase for several Business and Advertising Mail products set to take effect on 2nd October 2023. This is a month earlier than anticipated. We understand that this news may raise concerns, but we’re here to shed light on the situation and, more importantly, to reassure you that we can help.
Why Are Prices Rising?
Royal Mail cites several reasons for this pricing adjustment:
- Restoring the Universal Service Obligation (USO): Over the past year, the USO has faced challenges in consistently meeting the expected standards.
- Inflation and Economic Uncertainty: Like all businesses, Royal Mail is grappling with the impacts of high inflation and an uncertain economic climate.
- Decline in Mail and Parcel Volumes: A decrease in letter and parcel volumes has led to increased costs per delivery, putting pressure on pricing.
What are the Price Increases?
Below is a summary of some of the key price changes:
- Price of Business Mail letters to increase by 13.6%
- Price of Large letters to increase by 10%
- Price of Advertising Mail letters to increase by 10.7%
- Price of Advertising Mail large letters to increase by 10%
You can find all the new prices at Royal Mail.
3 Tips for Reducing Your Postage Costs
There are a few tips we can offer to help reduce your postage costs among these rises. For example:
Royal Mail Economy Mail
More customers are choosing to move mail to Mailmark Economy, which gives customers greater choice, with a wider delivery window, for a lower price. Customers using the Economy service will receive lower price increases than customers using the equivalent standard services.
Tray Discount for Letters
Trays are a more efficient container for Royal Mail to process mail, meaning costs are lower. So Royal Mail will encourage this method with better discounts – from 2 October 2023, the discount for each Letter item presented in a tray will increase from 0.5p to 0.8p, and for Large Letters from 1.5p to 2.0p.
Move to Access 70 Sortation Service
Royal Mail is encouraging customers to move to Access 70 services to save costs. By moving away from a 1400 service to the Access 70 service, customers may be able to achieve the required container fills to enable them to move from bags to trays – and enjoy the associated discount. Talk to our team to find out more.
How KPM Group Can Help You Navigate Price Rises
At KPM Group, we are committed to mitigating these price rises and ensuring that your business continues to thrive. Here’s how we can help:
- Optimising Pack and Content Design: Our in-house experts will work closely with you to ensure that your pack and content designs are tailored for the most cost-effective postal solutions.
- Data Accuracy & Checks: Your data should be cleansed and tested to ensure that every single piece of mail is going to a validated customer. Plus, we’ll meticulously review your data to identify more cost-effective sortation methods, helping you reduce costs without compromising quality.
- Leveraging Royal Mail Incentives: We’ll explore new avenues of collaboration to access any Royal Mail Incentives on offer. If we can secure these incentives, you’ll benefit from postal credits that can offset future mailing costs.
- Proactive Account Management: Our dedicated account managers are ready to assist you in a proactive manner. If you’re considering bringing forward any planned mailing campaigns before the rate change, we’ll ensure a quick turnaround to meet your needs.
- Royal Mail or Downstream Access: To get the best postage prices for your campaign you need to get quotes from Royal Mail and Downstream Access providers. Postal operators save their best rates for wholesalers like us, so asking KPM for your postage quote will not only save money but also valuable time and energy.
We understand that postal services are challenging. However, please rest assured that our team at KPM Group is fully committed to working closely with you, using our expertise and industry connections, to minimise the impact of these price rises on your business. Don’t forget, we work with all the main postal suppliers in the UK and have access to the widest possible options for you.
If you have any questions, concerns, or specific requirements, please don’t hesitate to contact us.
Read more > Our Postal Services
Book a Free Postage Audit
Are you getting the best postage rates and delivery times? Make sure you stay ahead of the curve before postage price increases come into effect.
Understand the available options and gain insight into small changes that could make a big difference to your budget. We’ll include recommendations for improvement and next steps.
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