March 10, 2014
April 2014 sees the introduction of then new pricing structure from Royal Mail.
There are often headline news articles about the increasing cost of postal services, but this is the media taking a typical headline grabbing perspective, usually around the cost of a stamp.
As a supplier postal services for over 17 years Romax understands the market better than most. Royal Mail are still the end delivery agent for the majority of post in the UK particularly for residential addresses, but there are a recognised and trusted group of delivery agents that also deliver to both residential and business addresses across the UK.
Royal Mail’s stamp prices are among the best value in Europe. The European average for First Class letters up to 100g is 67p. The European average for Second Class letters, up to 100g, is 60p.
Postal services remain affordable. Ofcom’s March 2013 report The affordability of universal postal services4 noted that average weekly household spend on post is low, for example, less than one twentieth of that on other utilities such as telephone services, electricity and gas. Current ONS data5 shows that spend on post is around 60p per week per household (2012 prices) across all households, which is around 0.1% of total consumption expenditure.
When you look at bulk and discounted services for post, then key users of the medium will be pleased to note that by investment in Royal Mail and a recognition that to sustain the Universal Service, that the business users of postal services – particularly advertisers – will benefit from little or no increase (dependent upon format) this coming April.
It is refreshing to see that the industry – namely Direct Mail, that is the largest revenue generator for the Royal Mail and the Down Stream Access (DSA) suppliers will not be overly affected in the April.
If you are however concerned about how the changes to tariff may affect you and your business, taking to Romax now is the perfect time, we can suggest ways to save money and we invariably do make considerable savings for clients whilst improving their ROI on Direct Mail campaigns.
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