The Royal Mail Wholesale adjustments to their postal access prices are expected to take effect on 1st July 2024. Marking the second increase in a year, following the previous adjustment on 2nd October 2023. Which poses significant implications for businesses managing their direct mailing and marketing expenditures effectively.
In terms of specific price adjustments:
Mailmark | Mailmark Economy | Large Letter Mailmark | 70 Large Letter |
+10.47% | +6.98% | <100g +10.76% | <100g +23.46% |
101-250g +10.53% | 101-250g +20.54% |
How to adapt to the Royal Mail Wholesale price increase
To mitigate the impact of these increases, businesses may consider several measures. By aligning with Royal Mail’s strategy of reducing deliveries of advertising mail and enhancing automation for sorting could potentially help offset costs. This approach aims to enable postal workers to handle more items per visit and adopt an alternate-day delivery schedule.
Furthermore, to access the most competitive rates, businesses will need to utilise efficient mailing formats, which may involve adjustments to packaging formats. While many bulk mailers transitioned during last October’s price adjustments, there may still be opportunities for further optimisation.
For the most cost-effective mailing option, Mailmark Economy is recommended. Businesses seeking to minimise expenses should ensure their packages conform to this format (i.e. postcards cannot be sent as an Economy service). Scheduling their mailings to coincide with the extended delivery dates. Transitioning to Mailmark Economy could yield substantial savings, even after accounting for additional costs such as envelopes or paper wrap.
Similarly, for businesses already utilising Mailmark, transitioning to Mailmark Economy is advisable for a practical solution. Although this transition may entail a slight increase (6.98%) in costs compared to current rates, it remains preferable to retaining the regular Mailmark service, which is subject to a higher increase (10.47%). Given the consistent delivery speed of Economy services, paying a premium for regular Mailmark seems less justified.
Expert Advice on navigating this increase
Postage expenses often represent a significant portion of overall campaign costs, ranging from 55% to 85%. Which is why we offer a wide range of postage solutions including postal incentives. We also have an in-house Postal Services Manager, Simon, who offers expert guidance and support, aiming to generate significant savings. From reviewing packaging formats through to exploring data cleansing and segmentation to make effective cost effective campaigns.
It’s imperative not to overlook the impact of postage costs. Rather than adopting an avoidance strategy we advise to pause and carefully assess the implications of these new postage rates. Seeking guidance from knowledgeable professionals like us can help facilitate this process.
Taking the time for a thorough review and exploration of available options may require an initial investment of time and resources. However, the potential for long-term cost savings makes this a worthwhile task.