Royal Mail - minimal discount

Discussion in 'Ecommerce Forum' started by Tom57y, May 1, 2019.

  1. Tom57y

    Tom57y UKBF Newcomer Free Member

    7 0
    I have enquired with RM about setting up a business account. Expected volume based on current sales would be 100 packages per day, all of which would be large letter under 100g. Standard cost is £1.06. RM have offered £0.91 + VAT if I setup a business account, which as I am not currently VAT registered, actually works out more expensive than the standard pricing. Is this normal or am I right to push for a further discount? To be honest, I need an account for ease as it will make processing orders a lot quicker, but maybe naively I was also expecting some discount.
     
    Posted: May 1, 2019 By: Tom57y Member since: Dec 21, 2017
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    14,231 1,554
    if that is the published figure on their website then that is what will be used.
    there is a further discount available for volume - not sure you are anywhere near it.

    think I was quoted 250 for volume discount applicable on large letters.

    the average weight help you at all - such as sending all items for a particular price rather than some at that price and some at higher price due to heavier item.
     
    Posted: May 1, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. Raw Rob

    Raw Rob UKBF Enthusiast Free Member

    1,116 234
    If you're selling 100 items per day, you're going to be VAT registered pretty soon I would guess?
     
    Posted: May 1, 2019 By: Raw Rob Member since: Aug 1, 2009
    #3
  4. YourCloudAccountant

    YourCloudAccountant UKBF Contributor Full Member

    38 1
    You can use Parcel2go - who in turn use whistl - you can save a lot of money using them think 40% - they fulfil post through royal mail.

    Take a look
     
    Posted: May 4, 2019 By: YourCloudAccountant Member since: May 4, 2019
    #4
  5. Joe Tagg

    Joe Tagg UKBF Newcomer Free Member

    4 0
    Royal Mail offer a standardised discount structure base on number of items dispatched per day. I'd definitely recommend doing a search for 'Royal Mail Business Price Guide 25 March 2019', and take a look at page 33 of this.

    If you are sending out over 100 items per day you'll get a 3% discount, making the cost of a RM24 large letter £0.88 for anything up to 100g. If you are willing to accept a slightly longer delivery time, then RM48 is significantly cheaper - see page 16 of the document mentioned above.
     
    Posted: May 15, 2019 By: Joe Tagg Member since: Apr 25, 2019
    #5