Royal Mail Price Increase 2013

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

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  1. smo

    smo UKBF Ace Free Member

    2,095 337
    Yes :(

    You have about 2 months to change over to the new system before RM refuse to take it.

    Consideing they only changed the PPI stamp last year its VERY short sighted, but fairly typical of RM. :mad:
    Posted: Apr 11, 2013 By: smo Member since: Apr 3, 2010
  2. websnail

    websnail UKBF Enthusiast Free Member

    511 89
    Yes and no...

    No it doesn't have to be a cube specifically but yes you can also have packages count as small parcel if it's less than 16cm in all three dimensions.
    Posted: Apr 12, 2013 By: websnail Member since: Apr 21, 2008
  3. kevin555

    kevin555 UKBF Newcomer Free Member

    309 29
    How many pages of nonsense before someone with any sense makes the business point that actually raising costs of hobby sellers knocks them out of the loop or forces them to raise prices instead of selling at cost or just above. It was the first thing I thought of when I looked into the new pricing.

    I mean this is a business forum isn't it? Or have all the businesses now left. Suggestions on signing petitions because someone has raised prices so that they can stay in business just beggars belief.
    Posted: Apr 22, 2013 By: kevin555 Member since: Feb 5, 2007
  4. TPH1

    TPH1 UKBF Regular Free Member

    151 18
    Obviously this side of it is great news. In fact I can't believe anyone that posts on a business forum is someone that sends less 3 items a day or less.
    Last edited: Apr 22, 2013
    Posted: Apr 22, 2013 By: TPH1 Member since: Sep 13, 2012
  5. paretowasright

    paretowasright UKBF Enthusiast Free Member

    671 98
    Well judging by some of the totally over emotional 'I hate Royal Mail' type messages there has been on this subject I think you are right. Yes the price increases are a royal pain where the sun does not shine but if RM were losing money on larger parcels its totally understandable.....we would all do exactly the same thing.
    Posted: Apr 22, 2013 By: paretowasright Member since: Jan 2, 2009
  6. TPH1

    TPH1 UKBF Regular Free Member

    151 18
    This doesn't justify their huge 10% increase on all other prices though, especially after last year's even larger increase and the fact that they reported a profit of over £100m in the last year.
    Posted: Apr 22, 2013 By: TPH1 Member since: Sep 13, 2012
  7. websnail

    websnail UKBF Enthusiast Free Member

    511 89
    Perhaps I'm alone in this one but I remember how I started out, how important Royal Mail was to me and my business as a means of bootstrapping my way into the business I am now. I also recognise that the items I manufacture and sell fall heavily into the area that RM excel at so when prices increase here, my business gets hurt every time.

    My own business model aside, it would be easy to sit here and pass judgement on the part timers because "I'm alright jack" but the reality of things is that there are a number of people in business who don't work 9-5, Monday to Friday or who work once the children are in bed, etc... for whom contract rates are not feasible. Are they not "in business" too or is this forum now only for bricks & mortar operations?

    As for the changes, this was not some small price increase it was another goal-post moving exercise where the current excuse has been the increase in packets and parcels. Now, correct me if I'm wrong but no such mention was made 14 months ago when they were busy wringing their hands with tales of woe for the press and regulator.. No, last year it was all about the falling rates of letters and how the only thing keeping them going was eBay, etc...

    This year the boogie man is parcels... Next year it'll be petrol prices and International mail.

    In the past 2 years there has been a huge increase in rates on what used to qualify as small packets, with weight bands tossed out in favour of higher minimums and now we're into dimensional banding. It's a no brainer that sooner or later the same sort of exercise is likely to be applied to contract services given the salami tactics being employed to change things.

    If Royal Mail had simply increased their prices instead of insisting on this whole song and dance routine of "It's all so much simpler and for you... honest!" that'd be one thing but, last year, promises were made to the regulator about small packet rates . To get around them they just changed the name and increased the prices considerably more. The fact that the regulator didn't so much as sniff at the change speaks volumes about how toothless they are.

    We also get to hear all this guff about costs but if you ask any postie they go on about how top heavy with management the place is. Yeah, there's going to be some sour grapes about manglement, there always is, but the complaints are pretty consistent. Too many managers standing around doing diddly squat. Poor internal communication, no listening to the workers on the ground. Too many consultants with spreadsheets and optimisation routines and very little real world. All of this is costing tons and we're buying the party line wholesale?

    So, yes, while there's an element of "All change sucks, Boo to Royal Mail" there's more than a little genuine business related concern that soon we'll have just another courier company that will be bleeding the small packet market dry.

    And just as a parting thought... There are a number of core infrastructure services available in this country that contribute to business growth and Royal Mail is one of those. Surely it makes sense to actually use that in a non-profit financial sense if the overall "profit" is that of a strong micro and small business sector that has growth potential or do we really think it's a good thing that all businesses from this point on should be PLC's with bank loan backing and a workforce of 5 from the get go?

    Seriously, is that a good thing or do we just care about ourselves and screw the rest?
    Posted: Apr 23, 2013 By: websnail Member since: Apr 21, 2008
  8. deniser

    deniser UKBF Legend Free Member

    8,104 1,702
    This is presumably plus VAT? Do you pass the VAT on to the customer in your postage prices and reclaim it on the £1.85?
    Posted: Apr 23, 2013 By: deniser Member since: Jun 3, 2008
  9. roydmoorian

    roydmoorian UKBF Ace Full Member - Verified Business

    1,953 342
    If it is so much of a problem for you why not deliver your packages yourself and see how much that costs !
    Posted: Apr 23, 2013 By: roydmoorian Member since: Nov 6, 2009
  10. websnail

    websnail UKBF Enthusiast Free Member

    511 89
    Yes absolutely... What a stunningly sensible suggestion!

    Why don't you suggest that someone complaining about the cost of a new car, learn engineering, technical drawing, smelting, metal working, oh and build their own tools while their at it.. then they can make one themselves.

    Oh and while we're at it, build their own oil extraction devices, cracking chambers and storage facilities for their own petrol.

    It's called Economies of Scale, Divsion of Labour, Specialisation and a whole host of other concepts we've learned to adapt to and use in modern society.
    Posted: Apr 23, 2013 By: websnail Member since: Apr 21, 2008
  11. roydmoorian

    roydmoorian UKBF Ace Full Member - Verified Business

    1,953 342

    Exactly - These are costs which have to be bourne so get your hand in your pocket and take advantage of this advanced society in which we live.
    Posted: Apr 23, 2013 By: roydmoorian Member since: Nov 6, 2009
  12. TheGeekestLink

    TheGeekestLink UKBF Regular Free Member

    369 23
    Actually, this thread has been incredibly helpful. No one told me that PacketPost had reduced the number of parcels and while we could have achieved the 5000 a year from this year, we had previously fallen short of that number so we couldn't take advantage of it.

    So Kulture really helped and we'll be starting their service in a few weeks, which means major savings!

    But the number of ridiculous posts on this forum is highly depressing. It's supposed to be a business forum; if you've got issues, go vent them elsewhere so the serious business people can get (and give) the help they need!
    Posted: Apr 23, 2013 By: TheGeekestLink Member since: May 4, 2011
  13. TPH1

    TPH1 UKBF Regular Free Member

    151 18
    Typical nonsense response to a genuine point.

    Don't give me all that "their costs have to be paid" when they made £100m profit. It's just a greedy move to increase by 10% after one of their most profitable years, and they're pushing their luck. There are courier companies now offering £2.50 delivery, and all it takes is for them to come down a bit and Royal Mail to have another 10% increase and then they have a serious competitor.
    Last edited: Apr 23, 2013
    Posted: Apr 23, 2013 By: TPH1 Member since: Sep 13, 2012
  14. Chris34

    Chris34 UKBF Regular Free Member

    522 143
    Excellent post and this is exactly what I've been thinking for the past couple of years. Lot's of people in business just don't seem to grasp the concept of this. It is quite right that private business should be left to adapt and evolve by themselves but only to a certain extent. When the country is competing with the likes of China for sales to UK customers and China can send it cheaper with the product price and the postage costs to here than we can send it just the postage costs then you know that something is not balanced on the scale of global economies.

    To explain this let's use this example. It's an LED bulb shipped from China.

    If I want to post a LED bulb from the UK to a customer in the UK the cheapest price I can send that bulb is £1.80 + VAT, now that is just the postage price it doesn't include the cost of the bulb. However I can buy an led bulb shipped from China for 0.99p , thats the bulb and the postage cost for 0.99p

    Why can a Chinese man send a package from China to the UK for half the price it would cost to send that same package from an address in the UK to another address in the UK?

    The only reason I can think of is that the Chinese government are subsidising their postage and China is one of the few countries that still has a credible growing economy.

    Posted: Apr 23, 2013 By: Chris34 Member since: Feb 3, 2009
  15. kulture

    kulture UKBF Legend Staff Member

    7,959 2,169
    I am VAT registered, so I have to charge VAT, and naturally re-claim it when charged.
    Posted: Apr 23, 2013 By: kulture Member since: Aug 11, 2007
  16. websnail

    websnail UKBF Enthusiast Free Member

    511 89
    I think you missed my point, possibly deliberately but whatever the reason.

    All those economies of scale work to bring the cost down such that the idea of "deliver it yourself and see how much it costs you" is just daft.

    You didn't sit there with a ton of solder, metal, and a workbench to build your computer or hand craft every electron to send out on to the Internet so why make flippant remarks that bear no resemblance to the reality we're in.

    If we were referring to a high value product, requiring a courier from door to door and the prices for that were being argued, you'd be closer to having a point, but as it stands you're comparing apples to oranges.. Actually no, apples to deep fried squid...
    Posted: Apr 23, 2013 By: websnail Member since: Apr 21, 2008
  17. Jeff FV

    Jeff FV UKBF Big Shot Staff Member

    3,619 1,702
    Just a reminder folks - you've now got less than a month to change your PPI labels from the Royal Mail 1st and 2nd design to the Royal Mail 24 and 48 design.

    This applies to those of using the packet post service and the code "CRL"

    The old (1st and 2nd) labels can be used until 5th July, but from 6th July you need to use the new 24 and 48 labels.

    I use to print my labels - I'm in no way affiliated to them, but have used them several times (recently got my 24 and 48 PPI labels from them - approx £8.50 for a thousand) and I'm happy to recommend them.

    Posted: Jun 10, 2013 By: Jeff FV Member since: Jan 10, 2009
  18. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    259 33
    Likewise - very happy with the service, quality and delivery speed. well worth a visit if you need labels quickly.
    Posted: Jun 10, 2013 By: JPMiddleton Member since: Aug 18, 2011
  19. alanc

    alanc UKBF Enthusiast Free Member

    848 178
    They've made the new PPI image format even wider!
    It won't fit on my current stock of blank stickers so I may have to discard those and get in a new lot.

    Posted: Jun 17, 2013 By: alanc Member since: Oct 28, 2009
  20. Jeff FV

    Jeff FV UKBF Big Shot Staff Member

    3,619 1,702

    Don't bin them just yet - the 'delivered by Royal Mail' can be anywhere on the label - my new labels are the same width as my old ones.

    Posted: Jun 17, 2013 By: Jeff FV Member since: Jan 10, 2009
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