Royal Mail Price Increase 2013

Discussion in 'Ecommerce Forum' started by paretowasright, Jan 24, 2013.

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  1. paretowasright

    paretowasright UKBF Enthusiast Free Member

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    So no doubt you have all been getting the pre warning letter through.
    I am just wondering what OFCOM will let them get away with this year after the huge rises last year?...one would hope inflation only but won't hold my breath.

    I have a theory they are going to try and whoop up large letter rates but I hope I am wrong :(
     
    Posted: Jan 24, 2013 By: paretowasright Member since: Jan 2, 2009
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  2. Esk247

    Esk247 UKBF Legend Free Member

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    ...and everyones harping on about the death of the high street.

    Watch Royal Mail kill off internet business with a massive rise in prices for small parcels. £5 an item for anything bigger than a letter I bet!
     
    Posted: Jan 24, 2013 By: Esk247 Member since: Oct 6, 2008
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  3. paretowasright

    paretowasright UKBF Enthusiast Free Member

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    Call the Daily Express with that one but I suspect OFCOM will be sensible :)
     
    Posted: Jan 24, 2013 By: paretowasright Member since: Jan 2, 2009
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  4. Quickpacksupplies

    Quickpacksupplies UKBF Regular Free Member

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    Not again I hate updating my prices every year due to these toe rags.
     
    Posted: Jan 24, 2013 By: Quickpacksupplies Member since: Sep 17, 2012
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  5. Esk247

    Esk247 UKBF Legend Free Member

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    We're already at £1.95 for some of our small parcels. A jump to £5 wouldn't be beyond belief for me. Think ours jumped 30p a parcel the last time because of the change between 250g and 750g or something.
     
    Posted: Jan 24, 2013 By: Esk247 Member since: Oct 6, 2008
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  6. Geoff T

    Geoff T UKBF Legend Full Member - Verified Business

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    Maybe this will force the old-style professions to "get with" modern (legal, etc)... about time too.. get the legal up to speed - quick time - and then royal mail is redundant!
     
    Posted: Jan 24, 2013 By: Geoff T Member since: Apr 30, 2009
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  7. british steve

    british steve UKBF Ace Free Member

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    Royal Mail need to make a profit you know - otherwise how else will the Government privatise and sell shares in RM back to the people who already own it in the first place! The UK Public!

    Then watch prices rocket upwards! (that will help retailers)
     
    Posted: Jan 24, 2013 By: british steve Member since: Oct 1, 2009
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  8. Quickpacksupplies

    Quickpacksupplies UKBF Regular Free Member

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    It won't actually help anyone except RM in the log run.

    Sent from my Galaxy Nexus using Tapatalk 2
     
    Posted: Jan 24, 2013 By: Quickpacksupplies Member since: Sep 17, 2012
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  9. paretowasright

    paretowasright UKBF Enthusiast Free Member

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    Geoff sorry could you please explain what you mean?
    Yes Royal Mail have something of a Monopoly but without a viable alternative on small packets/parcels the only control in place is OFCOM to avoid abuse of a dominant market position.
     
    Posted: Jan 24, 2013 By: paretowasright Member since: Jan 2, 2009
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  10. smo

    smo UKBF Ace Free Member

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    Oh joy, i've not had my pre-warning of a sh*fting letter yet but I can't wait for another shockingly large rise to kill off small businesses who send letters and packets.
     
    Posted: Jan 24, 2013 By: smo Member since: Apr 3, 2010
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  11. Page

    Page UKBF Big Shot Free Member

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    It is a very competitive market place

    You do not have to use Royal Mail

    Just use one of the cheaper services

    Ah but RM is the cheapest for small packets - so what does that tell you

    I am not saying that it is good news - personally I would like to be paying 1p per large packet or even that they should be paying us for the joy of delivering our post (lol) - just that maybe the price is actually quite fair allowing for the marketplace and we have all been having it good while RM has lost money for years

    Now they are doing serious volumes on small packets they are starting to get an idea of what the real cost of handling these items are
     
    Posted: Jan 26, 2013 By: Page Member since: Jul 28, 2007
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  12. jaspat25

    jaspat25 UKBF Newcomer Free Member

    11 1
    Just joined this forum to send a warning.
    Had a quick chat with a TNT account manager. No it was not about joining TNT, as we already have part of the work carried out with them, so info seems genuine.
    He said they just received wholesale price rises for packages... between 38% and 40%.
    Apparently the usual 30 days notice will hit us in march.

    I feel a Downing Street petition brewing.
     
    Posted: Jan 31, 2013 By: jaspat25 Member since: Jan 31, 2013
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  13. Esk247

    Esk247 UKBF Legend Free Member

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    I feel the high street making a come back.

    That could raise one of our parcel prices from £1.65 to £2.31 :eek:
     
    Posted: Jan 31, 2013 By: Esk247 Member since: Oct 6, 2008
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  14. jaspat25

    jaspat25 UKBF Newcomer Free Member

    11 1
    my business is only coming up to 2 years old. last price rise nearly closed it; this will be a close call.
     
    Posted: Jan 31, 2013 By: jaspat25 Member since: Jan 31, 2013
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  15. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

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    Everyone's in the same boat so it's a level playing field for all really.
     
    Posted: Jan 31, 2013 By: wayzgoose Member since: Oct 9, 2007
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  16. SillyJokes

    SillyJokes UKBF Newcomer Free Member

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    If only this were true, but when did you plast pay what it costs to get something delivered from Amazon?

    Their free shipping is one (possibly the main) reason they thrash everyone else.

    How do they do it?

    Well for starters they sort post before shipping it making Royal Mail's job much easier,

    but also I sometimes wonder if they aren't being subsidised by the rest of us.
     
    Posted: Jan 31, 2013 By: SillyJokes Member since: Jul 26, 2004
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  17. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

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    What I meant was it's a level playing field for all smaller sellers. You're never going to be able to compete with the likes of Amazon. Good job not everyone shops on Amazon.
     
    Posted: Jan 31, 2013 By: wayzgoose Member since: Oct 9, 2007
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  18. jaspat25

    jaspat25 UKBF Newcomer Free Member

    11 1
    unfortunately not.
    Royal mail discount very high volumes so the small businesses as usual feel the most pain. Larger businesses with more staff and larger warehouses can also zone sort to postcodes and save a further 30%.

    Small businesses get a calender.
     
    Posted: Jan 31, 2013 By: jaspat25 Member since: Jan 31, 2013
    #18
  19. Esk247

    Esk247 UKBF Legend Free Member

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    In theory yes. In practice not so. A lot of companies will continue subsiding free delivery in order to retain customers or simply because they don't notice the price hike until much later on.

    I think some companies get a deal when using a franking machine, they use it on credit so they won't notice the increase until months after the very small retailers start paying for it.

    The last increase in postage saw very few of our competitors change their pricing. Only a few changed to either paid postage or a small increase in the price of the product.

    Amazon will be rubbing their hands with glee as they can now undercut all of their market place traders. They've already hoovered up a dozen more products that we sold through them, they've now got them with next day delivery and a cheaper price than we can offer :( darn it!!
     
    Posted: Jan 31, 2013 By: Esk247 Member since: Oct 6, 2008
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  20. wayzgoose

    wayzgoose UKBF Enthusiast Free Member

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    Those are all options open to all - whether to implement them or not is up to individual businesses.
     
    Posted: Jan 31, 2013 By: wayzgoose Member since: Oct 9, 2007
    #20
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