In a surprising move, Royal Mail Wholesale announced new postal access prices effective from October 2nd, 2023 – 98 days earlier than usual. This adjustment comes after Royal Mail reported an operating loss of £419 million for 2022/23, prompting a swift response. With the new rates coinciding with the busy autumn/winter season, businesses must rethink their strategies.
Against a backdrop of soaring living costs, high inflation rates, and the highest interest rates since 2008, companies now grapple with a significant surge in their biggest budget component – postage.
Breaking down the figures, the headlines reveal a staggering 12.8% increase for naked mailings and a comparable 12.4% for Mailmark in letter access prices. Large letter mailings experience similar hikes, with high sort seeing a 12.2% increase, and Mailmark Large Letter packs a 12.3% surge.
For manual or high-sort users, a heavier price increase looms. This traditional approach results in a 12.81% increase
Large letter formats don’t fare much better. Rates for mail mark Large Letter <100gms surge by 12.37%, while the 101-250gms option sees a 12.08% hike. Manual or high-sort users for large letter projects face even higher rate increases, highlighting the ongoing push toward Mailmark.
To mitigate the impact, businesses must adapt. Royal Mail’s strategy emphasises automation and Mailmark utilisation. Optimal rates require efficient formats and packaging adjustments. For those prioritising cost savings, mail mark Economy presents a viable solution, with minimal cost hikes to this service.
As postage constitutes a significant portion of campaign costs (60-85%), ignoring these changes isn’t an option. Seeking expert advice can yield substantial savings. Amid economic challenges, addressing postage costs through strategic planning is crucial. By staying informed, embracing change, and optimising cost efficiency, businesses can navigate these challenges and emerge stronger.
Need Guidance? We’re Here to Help!
If you’re seeking ways to manage the impact of rising Royal Mail prices, our team are committed to offering expert advice and customised solutions tailored to your needs. Reach out to us to navigate this terrain effectively and find cost-effective paths for your mailing campaigns.
