How much will the postage rises affect your business?

[Scottish Business Owner]

Today sees the increase in a number of postal charges by Royal Mail. To give you some idea a first class stamp will now cost 60p which was previously 46p and a second class stamp will cost 50p instead of the previous price of 36p.

http://www.bbc.co.uk/news/business-17859782

I know alot has been said about these quite incredible increases but I wonder if it will actually hit businesses that hard. From our perspective we now email most invoices/quotes etc so i'm not sure how much this will impact us directly.

What about other on the forums - Is this bad news for your business?

 

[Wills]

Very little for me now, with all correspondence being electronic and bills via online banking it's only client shipping costs that I incur which is fully recovered. For the occasion need to actually post mail it's still a very small amount to pay for an excellent service considering the actual handling costs involved.

 

[Bakersbelief]

I sell stuff on ebay as a hobbie and it makes a bit of money on the side of my day job. Most of the items I sell are of the large packet size. The prices now cost a fortune and make buying the items less attractive due to the high postage costs.

I've now switched from using Royal Mail to a courier (MyHermes),as it works out a fair bit cheaper to post the larger items with them, although they have put their prices up as well.

The postage costs are just going to keep rising every year.

 

[MrsDev]

I really dislike Royal Mails pricing structure. I have many items that I sell which are just outside the small parcel sizing, but are as light as a feather, yet I have to pay nearly double the postage cost than if it were a small parcel.

Just costs too much to the customer!

 

[Gemma Rowlands]

When I was just setting up in business, one of the things that I did was sell things online. I would also hand make cards and send them to people - but thanks to the postage increase I stopped doing it because allowing free postage cut into my profit margins too much, and fewer people used the service when we charged because there were so many other companies who could post for free. So it wasn't great for us, but if it had never happened I wouldn't have focussed on other parts of my business so much, so I have to say that it has probably been for the best overall.

 

[Pete Brindle]

Won't affect me much as I don't really post anything. The only things that I might post are the end of term reports for our pupils if they happen to be off on their last lesson but this doesn't tend to happen much apart from in the summer when they go on holiday, but that's pre planned so I can give them to them in advance. We send Christmas cards but pass them directly to pupils so it isn't a problem. I do think, however, that there are a lot of small businesses that are going to struggle because of this.

 

[Gemma Rowlands]

Won't affect me much as I don't really post anything. The only things that I might post are the end of term reports for our pupils if they happen to be off on their last lesson but this doesn't tend to happen much apart from in the summer when they go on holiday, but that's pre planned so I can give them to them in advance. We send Christmas cards but pass them directly to pupils so it isn't a problem. I do think, however, that there are a lot of small businesses that are going to struggle because of this.

I now send eCards to clients at Christmas for the sole reason that it would cost so much to post - particularly because a lot of them live overseas. So perhaps this would be an option for you, too, in the future?

 

[Pete Brindle]

I now send eCards to clients at Christmas for the sole reason that it would cost so much to post - particularly because a lot of them live overseas. So perhaps this would be an option for you, too, in the future?

Not a bad idea, I suppose it would get rid of the cost of the card itself as well. The only thing is that I quite like the personal touch of a physical card, and because a lot of my clients are children I feel it means a lot to them to get a card from their teacher! In any other business I would agree with you completely, though.

 

[Gemma Rowlands]

Not a bad idea, I suppose it would get rid of the cost of the card itself as well. The only thing is that I quite like the personal touch of a physical card, and because a lot of my clients are children I feel it means a lot to them to get a card from their teacher! In any other business I would agree with you completely, though.

Fair enough, I get that. Nothing's better than a personal and hand written card!

 

[Pete Brindle]

Fair enough, I get that. Nothing's better than a personal and hand written card!

With children especially they will tend to bring a card for you, so I do like to give them back.

 

[Business Upside]

Royal Mail has issued confirmation of their approved price changes for 2020.

 

[Okdar]

Very little for me now, with all correspondence being electronic and bills via online banking it's only client shipping costs that I incur which is fully recovered.

 

[Ford Jones]

The increase in postal charges by Royal Mail can indeed have varying impacts on different businesses, depending on their size, operations, and reliance on traditional mail services. While it's true that many businesses have transitioned to digital communication methods like email, the postal system still plays a role for certain types of businesses and situations. Here are some perspectives to consider:

1. Small Businesses and Individuals: Smaller businesses and individuals who still rely on physical mail for communication, marketing, or shipping products might feel the impact of the increased postal charges more significantly. This could include businesses that send physical promotional materials, catalogs, or samples to customers.
2. E-Commerce and Online Retail: For e-commerce businesses, the cost of shipping products to customers could increase, affecting pricing strategies and potentially impacting customer satisfaction. However, many e-commerce businesses have already factored shipping costs into their pricing models and may have flexibility to adjust their strategies.
3. Service-Based Businesses: Businesses that provide services and communicate primarily through digital means (such as email) might not be as affected by the postal charge increase. They might have already minimized their reliance on traditional mail.
4. Direct Mail Marketing: Businesses that engage in direct mail marketing campaigns, such as sending physical advertisements or promotional materials, could experience increased costs. This might lead them to reevaluate their marketing strategies or explore more targeted and cost-effective digital marketing approaches.
5. Billing and Invoicing: As you mentioned, businesses that have shifted to electronic invoicing and billing might not see a direct impact. In fact, this could be an opportunity for them to highlight their eco-friendly practices and efficiency to customers.
6. Sensitive Documents: Some industries, like legal or financial services, might still require the use of physical mail for sensitive documents due to legal or regulatory requirements. The cost increase could affect their operational expenses.
7. Customer Perception: Businesses that occasionally use physical mail might need to consider how the increased costs could be perceived by customers. They might need to communicate any necessary price adjustments or changes in advance.

In any case, it's a good time for businesses to assess their communication and shipping strategies. This could involve evaluating whether digital alternatives are more cost-effective, streamlining operations, and considering the environmental impact of reduced paper usage.
Ultimately, the impact of the postal charge increase will vary from business to business. Companies should analyze their unique situations and consider adapting their strategies to accommodate the changes in postal costs while continuing to provide value to their customers.