As we look ahead to the latter part of 2024, we anticipate a significant shift in the landscape: an imminent wholesale postage price increase for business and admail, set to take effect in July. While this adjustment presents challenges, rest assured that Send DM is committed to guiding you through this transition with care and providing supportive solutions to minimise its impact.
Understanding the Details
The looming rise in wholesale postage prices is driven by various factors. Most notably, an evident decline in mail volume, from 20 billion to 7 billion pieces, has presented challenges for Royal Mail in maintaining its Universal Service Obligation (USO) in a financially sustainable manner. Additionally, issues such as industrial actions leading to revenue loss and perceived decreases in service quality due to strikes have contributed to the need for price adjustments. Furthermore, Royal Mail’s strategic shift towards parcel delivery as a cornerstone of its growth strategy has likely influenced pricing structures and the frequency of traditional mail services.
The justification for the price increase is despite a steady rise in Direct Mail and Mailing campaigns and its success rate over the last ten years, with JICMAIL reporting that 95% of mail was engaged with in some form during Q1 2023. This engagement has, in turn, led to better returns for advertisers, with 30% of mail prompting commercial actions from consumers such as purchases, voucher redemption, website visits and store footfall.
Solutions to Soften the Impact
To alleviate the potential impact of the impending price hike, Send DM is offering a range of supportive measures:
Leveraging Postal Incentives: Take advantage of available postal incentives and discounts to mitigate the financial implications of increased postage costs.
Optimising Pack Design: Collaborate with our experienced team to refine the design of your direct mail packs, ensuring they strike the perfect balance between impact and cost efficiency.
Streamlining Data Cleansing: Utilise our data cleansing services to ensure the accuracy and precision of your mailing lists, minimising waste and enhancing the effectiveness of your campaigns.
Conducting Comprehensive Product Reviews: Benefit from thoroughly reviewing your products and services to identify opportunities for cost optimisation and campaign enhancement.
Comprehensive Postal Service Evaluation: Engage our team to comprehensively assess your postal service arrangements, identifying avenues for optimisation and maximising the value derived from your postage expenditure.
Boosting Resilience and Positivity
When price hikes loom, keeping a positive stance is crucial. With some thoughtful planning and a little help from trusted partners like Send DM, businesses can overcome these changes with confidence that they are not alone.
As we gear up for the upcoming postage price increase in July, let’s tackle it with teamwork.
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