Royal Mail Price Increase 2013

[Martinkpan]

Anybody got the procedure or link for complaining to OFCOM for these 2013 increases? Also any tips from your experience if you 'been there - done that' would be appreciated. Cheers.
We post well over a 1000 packets a year BUT many of them go abroad. We would only qualify for the new Royal Mail 24/48 if we send over 1000 large letters and packets INSIDE the UK, which we do not (just under). Also we are in the Highlands so couriers are often more expensive....
I find these massive RM increases criminal. It was explained to me that Royal Mail and the Post Office have split, i.e. are now two separate businesses. So Royal Mail wants to get/transfer all the remaining better customers (i.e. small businesses like us) to accounts with themselves, so the Post Office is loosing out. Royal Mail is doing a clever trick by 'binding' all these customers with these new accounts to themselves while also increasing revenue with extortionate new prices for packages. I hope this can be reverted if enough of us complain -- again any experience out there how to do that? Prices increased massively last year, but this change with the size restriction to 8cm is crippling -- not everybody posts books/items that will fit into 8 cm. Many people post things that are thicker (I know about the 16x16x16 cm exception - does not help either - thanks).
Grumpy and looking for solutions.

 

[paretowasright]

Anybody got the procedure or link for complaining to OFCOM for these 2013 increases? Also any tips from your experience if you 'been there - done that' would be appreciated. Cheers.
We post well over a 1000 packets a year BUT many of them go abroad. We would only qualify for the new Royal Mail 24/48 if we send over 1000 large letters and packets INSIDE the UK, which we do not (just under). Also we are in the Highlands so couriers are often more expensive....
I find these massive RM increases criminal. It was explained to me that Royal Mail and the Post Office have split, i.e. are now two separate businesses. So Royal Mail wants to get/transfer all the remaining better customers (i.e. small businesses like us) to accounts with themselves, so the Post Office is loosing out. Royal Mail is doing a clever trick by 'binding' all these customers with these new accounts to themselves while also increasing revenue with extortionate new prices for packages. I hope this can be reverted if enough of us complain -- again any experience out there how to do that? Prices increased massively last year, but this change with the size restriction to 8cm is crippling -- not everybody posts books/items that will fit into 8 cm. Many people post things that are thicker (I know about the 16x16x16 cm exception - does not help either - thanks).
Grumpy and looking for solutions.

Good luck with that but with the government involved in privatising RM I very much doubt you would get anywhere. Rebranding 24 and 48 has effectively got them off the hook just like a lot of FMCG companies change things and then increase prices. RM also established that larger parcels are uneconomic as they went through the van network rather than posties hence the price rise.

 

[dag-uk]

I called Ofcom today to ask if RM could increase prices by so much. After getting the party line etc, I finally got a statement to the effect that

"Ofcom gave RM the power to raise prices as they see fit to stay commercially viable provided they keep the universal franchise. "

Just to cloud the matter more, I found this from 27th April 2012 after last years price rises :

"However, the rules mean these prices can go higher.
The regulator has capped the price of second-class stamps at 55p. This cap can rise at the rate of inflation over the next seven years.
The cap on large letters and parcels of up to 2kg would be directly linked to this, the regulator has proposed, meaning that prices could rise by no more than 34% from Monday until 2019 based on 2012-13 prices."

I use 4 different sizes of boxes and the price rises are between 11% an 110% ! This could backfire on RM if we get creative with packaging for items under 1Kg and get them into the small bracket !

Dave

 

[Bartlby37]

I actually have some sympathy with RM. Over the past however many years the most profitable bits of the postal system have been opened up to competition. Other providers have moved into those areas reducing the overall profitability of RM, while RM is required by law to provide a universal delivery service that the other players in the market are not. Politicians then complain that RM isn't profitable. Personally I'd rather have a more expensive and sustainable RM than no RM at all - there may be other ways to achieve that, ie direct govt. subsidy but that's another debate.

My problem is less with RM than it is with customers (especially international ones) who want fast delivery to their door but don't want to pay for it - how many customers would go for a cheaper service where they had to collect from a post office rather than getting things delivered to their door?

 

[steveoptix]

Hi,

First post!

We like many others will be heavily affected by these increases, we are a bricks and mortar store but send out approx 1500 web orders a year. The majority of our trade is clothing and these changes are going to hit about 85% of the packages we send.

One question is what other viable alternatives are out there if you want to send a package for next day but want to keep the prices under RM's?

We'd also like daily collections from our store but despite Googling for hours it doesn't seem to be that straightforward :-(

Thanks all!

 

[Jayser100]

I do think we need to accept increases will happen but it would help if they didn't keep changing the weight brackets etc. It just makes the whole thing confusing. I have enough to do on a daily basis without having to constantly try and fathom what we pay for our packet post service.

I would like to thank the guy back up this thread who wrote out his calculations, that was helpful as a guide to my own post.

 

[puffin]

After some further info from Royal Mail in regards to my post:

http://www.ukbusinessforums.co.uk/forums/showpost.php?p=2210693&postcount=115

My re-workings are:

What we currently pay:
BPL CODE = 1st Class Packet 501 - 750g = £2.50 + £0.95 (recorded) = £3.45
BPL CODE = 2nd Class Packet 501 - 750g = £2.05 + £0.95 (recorded) = £3.00

Based on Packetpost (0-99 packets per order)
1st Class Packet 0 - 750g = £2.19 + £0.95 (recorded) x 1.2 = £3.77
2nd Class Packet 0 - 750g = £1.63 + £0.95 (recorded) x 1.2 = £3.10

From 2nd April Prices: - I'm not bothering doing a Medium Parcel calculation as I think there are cheaper alternatives elsewhere.
BPL Code(Small Packet) 1st Class 0 - 1kg = £2.65 + £1.10 (recorded) = £3.75 +£0.30
BPL Code(Small Packet) 2nd Class 0 -1kg = £2.25 + £1.10 (recorded) = £3.35 +£0.35

Royal Mail 24/48 (Old PacketPost name - Normal more than 1000packets per year)
Royal Mail Parcel 24 0 - 1kg = £2.38 + 2.5% (fuel) = £2.4935 + £1.10 (recorded) x 1.2 = £4.2474 + £0.4774
Royal Mail Parcel 48 0 - 1kg = £1.80 + 2.5% (fuel) = £1.845 + £1.10 (recorded) x 1.2 = £3.534 + £0.434

So as you can see, Recorded is VATABLE.

From what I was told is 'Recorded when added to a non vatable product - no vat charged'.

So for people who use the BPL Code (Not Vat Reg'd), you have to weigh up IF and WHEN you are going VAT Registered to use the CRL (PacketPost/now 24/48) code, so you can claim back the VAT paid on postage.

IF you are thinking of going/or hoping that the business will need to go VAT Registered, then it is most certainly better paying the extra cost of postage (based on my examples) NOW, and then re-claiming this back when you go VAT Registered.

Other Notes: Fuel Surcharge is only for the 24/48 service.

I hope this clears up some peoples views (and my own).

 

[Jayser100]

Just got the letter from RM.

I have a couple of questions -

1). By 'small parcel' do they mean 'small packet', or is it the case that Packet Post sizes are not affected by these changes?
2). Can 'Medium Parcels' be sent using a Packet Post account, with a new code?

 

[puffin]

Just got the letter from RM.

I have a couple of questions -

1). By 'small parcel' do they mean 'small packet', or is it the case that Packet Post sizes are not affected by these changes?
2). Can 'Medium Parcels' be sent using a Packet Post account, with a new code?

Have a read of my post above.

Small Packet is ONLY for Normal post, with BPL.

Small & Medium Packets are not applicable to Packetpost(24/48)

 

[Jayser100]

Our account was called Packetpost. When we fill in the postage order form, we select OBA codes for small packets, either inland, for Europe or World.

So packets have applied thus far.

I have just spoken to RM and they confirmed packets no longer exist. They have been replaced by small and medium parcels instead.

Since we often send out 'small packets' that will now become medium parcels, I will have to have a careful look to see if we will do better to book through Interparcel.

Obviously it would have been helpful if RM had actually made that clear on their paperwork.

 

[puffin]

Our account was called Packetpost. When we fill in the postage order form, we select OBA codes for small packets, either inland, for Europe or World.

So packets have applied thus far.

I have just spoken to RM and they confirmed packets no longer exist. They have been replaced by small and medium parcels instead.

Since we often send out 'small packets' that will now become medium parcels, I will have to have a careful look to see if we will do better to book through Interparcel.

Obviously it would have been helpful if RM had actually made that clear on their paperwork.

From what we've been told, the new 24/48 service that was PacketPost is not doing Small or Medium Parcels.
There is no banding for them, you can post what size you want within reason it seems with the PacketPost service.

 

[Jayser100]

I have just spoken to RM again to clarify the situation regarding OBA codes. I was concerned that they are saying on the OBA website that codes will just stay the same, despite the fact they have effectively split parcels (packets as they were) into two different products.

Apparently, you would select the packet code as before but then there will be an extra option installed within that code where you need to choose small or medium parcel size. It will therefore be important to measure your parcels to make sure they comply with the new size guides.

 

[Jayser100]

That's not what I was told on the phone by RM in either of my two conversations with them. Also, the pack of information and pricing we have been sent only makes reference to the new parcel banding.

I was very specific in my question to the operator. "Does Packet Post still exist, or has it been replaced by small and medium parcels"

"that's right, it has been replaced" she said.

 

[puffin]

On the contract services pricing which is viewable online, there is no small or medium parcels for the new packetpost (royal mail 24/48).

 

[websnail]

That's not what I was told on the phone by RM in either of my two conversations with them. Also, the pack of information and pricing we have been sent only makes reference to the new parcel banding.

I was very specific in my question to the operator. "Does Packet Post still exist, or has it been replaced by small and medium parcels"

"that's right, it has been replaced" she said.

Once again it's left hand/right hand, narry a clue... (Royal Mail I mean!)

Packetpost has been replaced by Royal Mail 24 and Royal Mail 48 services. There is NO dimensional banding in these products WHATSOEVER!

The VAT exclusive 1st & 2nd Class product (BPL as it's otherwise known) is also provided via OBA and will undoubtedly provide the relevant small/medium parcel size options to select.

The problem is that there seems to be this confusion about OBA as if there's only one way of sending what most folks recognise as 1st/2nd class post when in reality there's multiple ways.


I fully expect a month or more of total chaos when the new pricing and banding requirements come into play, coupled with outrage from media, etc... (when one of the journo's grannies tries to post a fruit cake to them and loses half their pension (you get the idea)) but once all the silliness has shaken out and RM staff and customers get used to it then we should find that RM staff start singing from the same hymn sheet.

Would anyone care to place a bet on them getting it sorted by about January of next year? Anyone?

 

[Jeff FV]

Sorry to keep asking questions - but this thread seems to be the most useful source of info!

Can anyone just clarify these questions for me:

We use the OBA - under the product description it says:

CRL: PACKETPOST DAILY RATE Your Configuration: Class of Mailing: First Class Royal Mail Format: Lge.Letter

or

CRL: PACKETPOST DAILY RATE Your Configuration: Class of Mailing: First Class Royal Mail Format: Packet

depending on whether I'm sending large letters or packets.

Am I right in thinking that the size of these items has not changed i.e. - if its thin enough (and narrow enough) its a large letter, otherwise it can still go as a packet. I have written down the max sizes of a packet as: 61 x 46 x 46 cm <- I remember writing that down for my own reference a year or two ago, but can't remember the source of those dimensions. Do they still hold?

... and question number 2, do I need to change all my postage stickers: "Delivered by Royal Mail" with a big 1 on them to 24 and 48, or can I use up my old stickers (these current ones only had to be used from Jan '13, so I've got quite a stock!)

Sorry if my question is a bit confused, it reflects my state of mind on this matter!


Thanks in advance

Jeff

 

[Mister B]

I think that Jeff sums up the way everybody else feels...if we can't fathom it out, and the Royal Mail staff can't fathom it out, what the f@ck is going to happen when it goes live?

For now we're sticking our head in the sand and will tackle it when it goes live next week.

Whilst we're ranting about the Royal Mail, does anybody else receive multiple mailings of the same notification on the same day? Talk about a waste of money.

Mister B

 

[LianneF]

Anyone figured out what ppi label you need to use for airmails? I've found the new ones for special and RM 24 but can't find anything on what labels we need to use for airmails?
Thanks
Lianne

 

[profscooter]

Just adding my 2ps worth to the thread. One of the main things my business sends out is Scalextric cars in their crystal display cases. The cases are 10 x 10 x 20 cm when packed, a total of 2000 cubic cm. I found some boxes for the new sized at Zetland Boxes so ordered some of the full small parcel size and also the 16 x 16 x 16 exception size. Of course my cars don't fit into either. So a product that has a retail price of £35 and used to be £2.70 to send, is now going to be £5.65. Bizarrely the cubic cm of a boxed car is half that of the 16cm exception box. And the full size small packet box is a whopping 12600 cubic cm, but long and flat. The whole thing is completely ludicrous. I appreciate that they have to draw a line somewhere but the cynic in me says they have made the size of the small parcel so impractical that everyone will need to upsize to medium.

 

[websnail]

Anyone figured out what ppi label you need to use for airmails? I've found the new ones for special and RM 24 but can't find anything on what labels we need to use for airmails?

Pretty sure they aren't changing the International formats in any way except price.

All the 123 info, etc.. has been related to UK domestic postal products/services and not International.

As to PPI... I get all my PPI marks generated by Dispatch Manager Online so as soon as I spot any changes to the mark used for International items I'll post up here.

Might also be worth watching the PPI generator for any changes after April 2nd, when it updates for the UK services.

 

[Esk247]

Just adding my 2ps worth to the thread. One of the main things my business sends out is Scalextric cars in their crystal display cases. The cases are 10 x 10 x 20 cm when packed, a total of 2000 cubic cm. I found some boxes for the new sized at Zetland Boxes so ordered some of the full small parcel size and also the 16 x 16 x 16 exception size. Of course my cars don't fit into either. So a product that has a retail price of £35 and used to be £2.70 to send, is now going to be £5.65. Bizarrely the cubic cm of a boxed car is half that of the 16cm exception box. And the full size small packet box is a whopping 12600 cubic cm, but long and flat. The whole thing is completely ludicrous. I appreciate that they have to draw a line somewhere but the cynic in me says they have made the size of the small parcel so impractical that everyone will need to upsize to medium.

We've hit the same problem. Our dispatch manager has gone through our parcel sizes today and found that non of our current small packets will go in the dimensions of the new small packets, they're now medium size. So our prices for each item have shot up from £2.70 to £5.65 most of our products are under £20 retail, so 20% off £20 for Amazon/eBay fees and then £5.65 off the total = £10.35, almost 50% of our turnover is going on fees and postage. Then we have to actually buy the items in the first place.

We'll have to charge postage but Amazon and eBay hate us doing that and always put us down the bottom of the searches

 

[websnail]

@profscooter/Esk247

Have you looked at your volume over a year and considered signed up for the RM24/48 account contracts? In your position if you're getting enough packages out the door to cover that then I'd seriously look at doing it ASAP.

It would at least help you avoid the mess of dimensional banding and, of course, the huge price hike that would go with it.

 

[profscooter]

Don't do enough volume for any of the providers' special deals sadly. However I have found that Hermes via Parcel2Go will do an "old style" small packet for £3.30 (3 days delivery I know but we can provide it as an option for people not wanting to pay extra).

 

[lob]

We have had a RM account for a few years
We sell on our own site and a few market places but not Ebay or Amazon
We sell low cost but fairly heavy weight items
We cannot afford to use a courier for our products--there is nothing price comparable to RM

I realise there is value in offering 'free postage' at the checkout but surely there is no such thing in reality
The 'cost' must be paid for
Isn't the time right to let customers know the real cost of moving items from A-B and to B's door at that
They will come across it themselves as was mentioned earlier when 'their granny wants to post them a fruit cake'--how true!!
There are 'brick & mortar' shopping costs in driving into town, parking for a couple of hours, having a cup of coffee and even the time used to do this

We make and sell our own products so we are in the lucky position that customers are not able to buy from a competitor at a lower price
We will continue to show delivery prices at the checkout so that customers can see what the cost is and not hidden in product pricing

I'd love to see other sellers do the same

 

[paulwillow]

hello everyone, i am disgusted with the new increases from the RM, it is going to put me out if business most likely, i am a regular ebay seller, doing smalls, antiques etc. To keep within ebay selling policies it is best to send recorded delivery so that the seller has a tracking number, well every year i get a certain amount of fraudlet buyers whom i trust to recieve the item and they say they have not...they get the item and a full refund, i loose the cost of posting, the cost of listing/photography and i loose the item, so best to send tracked, but now the difficultly is that cost of sending recorded delivery on there stupid parcel size is going to double or treble.

most of my items i sell fall into the medium box size box and prices start at 5.20 for second, 5.65 for first, to get recorded with the same size box, 9.10 second and 10.00 first recorded.

the prices have risen by 100% and a little more, inflation is running at about 2.8-2.9%, RM made 211 millon profit last year, ending 2012, how can they justify this price rise, my customers will simply stop shopping with me, really unsure what i am going to do, as i rely on this selling business as my only form of income.

i spend about 12K per year on postage. I will be taking my busisness elsewhere, as i have no other option, but of course other carriers are less careful, sign for parcels when they shouldnt and loose parcels on a regular basis, so there is a caveat for the cheaper services.

please please kick up about it, to the RMail, your MP and Office of Fair Trading, that is the only way they (the RMail) will back down or do something sensible.

 

[paulwillow]

yeah yeah, they made 211 million profit to 2012...they are toerags, sincerely paul

 

[paulwillow]

hi both
i am in exactly the same predicament, see post 145 for a short review of my thoughts.
very unhappy with Royal Mail Prices...i am really unsure why this is not on the evening news as disgraceful behaviour...paul

 

[gibby]

We send 30 to 60 items a week by rm, mainly small value stuff.
We prefer to send it by courier but customers prefer the cheaper delivery on small items. Its always been a hassle as they take so long, customer complain at the delivry time and we waste time on the phone.

90% of these will now be cheaper to send by courier and should save us some time and effort. We may just drop the remaining 10%.

We are hoping our competitors will do the same too

 

[mudsciper]

...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!

Hi,
Check out RM business service,if you are sending a 1000 S/parcel a year you can get a really good rate using this service.There is no queuing at the post office & you pay for the average weight devided by no of parcels you are sending.
Everything's booked in on line,very simple to use.
You attach ur PPl to your parcel & off or goes.

 

[aquarium plant food UK]

Hi,
Check out RM business service,if you are sending a 1000 S/parcel a year you can get a really good rate using this service.There is no queuing at the post office & you pay for the average weight devided by no of parcels you are sending.
Everything's booked in on line,very simple to use.
You attach ur PPl to your parcel & off or goes.

Yes, if only you could actually get an account, I have lost count of the number of times we have rung trying to sort one out :| We are trying to spend £10000 a year with them, not much in the bigger picture, but certainly not to be sniffed at.....

 

[puffin]

Hi,
An update, the Online Business Account has now updated it seems.

1 thing that concerns me, is for BPL code, you have no option to add 'Recorded/Signed For', but on 'Packetpost/24/48' you can now?

So I'm stuck in a tricky situation at the minute..

 

[paretowasright]

Hi yes exactly the same problem here.
I have a bad feeling 'signed for ' is now one of those 'new services' unless there is another code for it other than BPL?

 

[paretowasright]

Visions of reprinting lots of signed for parcels with 24/48 labels + separate postal bag etc tomorrow after waiting 45 minutes to speak with someone at RM who does not understand this

 

[puffin]

Hi yes exactly the same problem here.
I have a bad feeling 'signed for ' is now one of those 'new services' unless there is another code for it other than BPL?

Hi pareto,
I've just checked it again, hoping it might have updated - but no to avail.

Visions of reprinting lots of signed for parcels with 24/48 labels + separate postal bag etc tomorrow after waiting 45 minutes to speak with someone at RM who does not understand this

Do you mean by signing up for the new 24/48 (old PacketPost)?

Could you let me know how you get on?
I'm hoping to post off a load of parcels tomorrow morning, but this signed for issue could cause some grief.

I may have to give my Account manager a call to say, sign me up for PacketPost (24/48) NOW.

EDIT: were Royal Mail open for calls today?

Cheers

 

[paretowasright]

Hi pareto,
I've just checked it again, hoping it might have updated - but no to avail.



Do you mean by signing up for the new 24/48 (old PacketPost)?

Could you let me know how you get on?
I'm hoping to post off a load of parcels tomorrow morning, but this signed for issue could cause some grief.

I may have to give my Account manager a call to say, sign me up for PacketPost (24/48) NOW.

EDIT: were Royal Mail open for calls today?

Cheers

Signed for is an option on 1st and 2nd class on the new PDF documents so I can only think this is an oversight on the BPL code. I can use CRL codes in both our accounts, it just adds VAT but defeats the object if not VAT registered. If they have messed this up short term aside of being out of pocket on signed for's for a few days my other question will be can we put 1st/2nd class in the same bag as 24/48!

http://www.royalmail.com/sites/default/files/RoyalMail_OurPrices_April2013b.pdf

http://www.royalmail.com/sites/default/files/RoyalMail_UKWallChart_April2013.pdf

 

[iKam]

Sorry to sound silly it may have been mentioned previously. I have read back a few pages of this thread and my head is completed frazzled by all the information on here!

We have a PPI account and we use the code CRL which is packet post daily rate which I now believe is 24/48 which we were told by Royal Mail that this is just another name for 1st class and 2nd class. The pricing and the branding has changed. We are VAT registered so we do claim back on our postage.

I wanted to ask what was the difference between BPL and CRL?

We have always been told to use CRL by our account manager.

 

[smo]

CRL is for VAT registered businesses

BPL is for non-VAT registered businesses.

 

[iKam]

CRL is for VAT registered businesses

BPL is for non-VAT registered businesses.

Thanks for the quick reply.

Is there a price difference between the two?

 

[lob]

But I think you can use either or both depending on whether your packet/parcel size fits the criteria
I believe the BPL and CRL have to be in separate sacks
We are registered for both but generally find CRL the cheapest to use--and it still seems to be as packets can be averaged up to 20k and have much larger dimensions
We don't use recorded so can't help with that
It is worth spending a bit of time on the Royal mail website putting in the new codes (if you are registered for them) with trial weights to see the best deal

 

[puffin]

Signed for is an option on 1st and 2nd class on the new PDF documents so I can only think this is an oversight on the BPL code. I can use CRL codes in both our accounts, it just adds VAT but defeats the object if not VAT registered. If they have messed this up short term aside of being out of pocket on signed for's for a few days my other question will be can we put 1st/2nd class in the same bag as 24/48!

http://www.royalmail.com/sites/default/files/RoyalMail_OurPrices_April2013b.pdf

http://www.royalmail.com/sites/default/files/RoyalMail_UKWallChart_April2013.pdf

I'm awaiting a call back now about the Signed for on BPL code.

If not, then I will be changing to CRL, I will insist on immediately.

In answer to your other question, I'm pretty sure they have to be in different bags.