James Miller

 

Tuesday, August 08, 2006

New Postal Charges

 

There has been some reaction to the new postal charges, in that some have complained that some greetings cards will be more expensive, but I have not seen much about the savings that business will make if they continue to use the Royal Mail.

I suspect that most assume that prices will rise because of the three rates for letters, large letters and packets.

I have written a book called, Making the Most of the Internet, which weighs just under a kilogram and now costs £3.89 to send using First Class Post, as it is too heavy for Second. From the 21st of August it will cost £2.70 First, but I will then be able to send it Second Class at £2.12.

I thought I must have been lucky, but my typical 100g A4 letter has also gone down from 49p to 44p. At least if I still persist in sending lightweight A4 letters, without folding into a smaller envelope, the price will have risen by about a third.

So I checked a magazine that we have posted each month and the postage for that will drop from £1.78 to £1.09. As another example, the Boden catalogue also dropped from £1.21 to 75p.

This is all very strange at a time, when the Royal Mail is supposed to be under pressure on profitability. On the other hand as they must have a very detailed database of everything that is sent, they are unlikely to reduce prices in most areas, without seeing substantial cost savings.

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