Royal Mail Price Increase 2013

[puffin]

I've just finished my new flowchart for my packers and anything going to the UK mainland that doesn't fit into a small packet size is now going by Interlink which is much cheaper than RM and gets delivered the next day. Before we only used to send by Interlink if it weighed more than 1 kilo. That's another 20% of my business that RM have lost on top of the circa 30% they lost on the last lot of increases.

Silly thing is RM gets left with the stuff they don't want which is Scottish highlands, islands and NI rather than my 500-1000g local parcels which must be much easier for them.

Hi Deniser,
How do the interlink prices compare?
Thanks

 

[TheGeekestLink]

I've just finished my new flowchart for my packers and anything going to the UK mainland that doesn't fit into a small packet size is now going by Interlink which is much cheaper than RM and gets delivered the next day. Before we only used to send by Interlink if it weighed more than 1 kilo. That's another 20% of my business that RM have lost on top of the circa 30% they lost on the last lot of increases.

Silly thing is RM gets left with the stuff they don't want which is Scottish highlands, islands and NI rather than my 500-1000g local parcels which must be much easier for them.

That's exactly what's happened to me. Royal Mail has lost thousands from me a year... I don't see how these changes are making them more competitive...

Can I ask: how have you handled the price increase? I know I've got to raise my prices, but I just don't know how to do it. I currently offer free delivery, but I think I'm going to go back to a standard delivery fee depending on weight / size. Your opinion would be really gratefully appreciated

 

[wayzgoose]

I don't see how these changes are making them more competitive...

Because they lose less money by NOT delivering your parcels than they lose when they do.

 

[desperatesam]

That's exactly what's happened to me. Royal Mail has lost thousands from me a year... I don't see how these changes are making them more competitive...

Can I ask: how have you handled the price increase? I know I've got to raise my prices, but I just don't know how to do it. I currently offer free delivery, but I think I'm going to go back to a standard delivery fee depending on weight / size. Your opinion would be really gratefully appreciated

I too was offering free delivery until we all heard RM were increasing their prices so had to re-think a new strategy.

So tried other couriers like Parecl2go.com and the prices are that low I am still able to keep my offer of free delivery to customers

Happy days.

 

[cholland]

Hi Deniser,
How do the interlink prices compare?
Thanks

My interlink prices are £4.50 < 1kg and £4.75 <5kg. Anything over this is £5.10 all next day signed for.

 

[puffin]

My interlink prices are £4.50 < 1kg and £4.75 <5kg. Anything over this is £5.10 all next day signed for.

What volumes is that based on?
As that £4.75 - £5.10 price is very good for that weight.

Although the 1kg is dearer than Royal Mail I suppose, but still when its next day that isn't too bad at all.

 

[cholland]

We do send quite a bit through, but I think there spend is a minimum of £150 a week. Not 100% sure!

 

[deniser]

Hi Deniser,
How do the interlink prices compare?
Thanks

We pay (on small volumes - I'm sure you can get better rates on higher volumes):
Small bag under 1 kilo £4.50 - would be classed as a small packet with RM so RM cheaper for this unless customer requires next day delivery.
Large bag under 5 kilos £4.75 (5 kilos this size with RM would cost £16.20 1st class recorded)
Large box up to 10 kilos or multiple boxes to same address (one charge regardless of number of boxes) £6.70
Europe box up to 31 kilos starts at £10.50 for zone 1
These are plus fuel surcharge.
These are for next day delivery with one hour time slot, customer notifications, tracking and reliable collection from our premises.

RM parcels not classed as small packets cost from £6.30 for 2nd class or £6.75 1st class signed for and take about a week to arrive, aren't collected and aren't tracked.

No comparison really..

 

[TheGeekestLink]

Small bag under 1 kilo £4.50 - would be classed as a small packet with RM so RM cheaper for this unless customer requires next day delivery.
Large bag under 5 kilos £4.75 (5 kilos this size with RM would cost £16.20 1st class recorded)
Large box up to 10 kilos or multiple boxes to same address (one charge regardless of number of boxes) £6.70
Europe box up to 31 kilos starts at £10.50 for zone 1
These are plus fuel surcharge.
These are for next day delivery with one hour time slot, customer notifications, tracking and reliable collection from our premises.

RM parcels not classed as small packets cost from £6.30 for 2nd class or £6.75 1st class signed for and take about a week to arrive, aren't collected and aren't tracked.

That's super useful information

 

[Sports Gear Wizard]

We pay (on small volumes - I'm sure you can get better rates on higher volumes):
Small bag under 1 kilo £4.50 - would be classed as a small packet with RM so RM cheaper for this unless customer requires next day delivery.
Large bag under 5 kilos £4.75 (5 kilos this size with RM would cost £16.20 1st class recorded)
Large box up to 10 kilos or multiple boxes to same address (one charge regardless of number of boxes) £6.70
Europe box up to 31 kilos starts at £10.50 for zone 1
These are plus fuel surcharge.
These are for next day delivery with one hour time slot, customer notifications, tracking and reliable collection from our premises.

RM parcels not classed as small packets cost from £6.30 for 2nd class or £6.75 1st class signed for and take about a week to arrive, aren't collected and aren't tracked.

No comparison really..

Hi Deniser, can I please ask what you class as small volumes ? Thanks, Graham

 

[Chris34]

Anyone else spent the whole morning trying to squash things into 45x35x8 cms packages?

Do you realise that those dimensions don't apply to the new 24/48 service available on packpost? The dimensions on this service are 610mm x 460mm x 460mm for parcels.

Prices for me are cheaper for me. They have removed the 750g weight band so it goes up to 1kg now but that just means that more of the parcels go through at the cheaper rate which is £1.80 + VAT.



Chris.

 

[deniser]

Do you realise that those dimensions don't apply to the new 24/48 service available on packpost? The dimensions on this service are 610mm x 460mm x 460mm for parcels.

Prices for me are cheaper for me. They have removed the 750g weight band so it goes up to 1kg now but that just means that more of the parcels go through at the cheaper rate which is £1.80 + VAT.

Chris.

I will look into this thanks - is it a signed for service?

 

[deniser]

Hi Deniser, can I please ask what you class as small volumes ? Thanks, Graham

We send between 3 and 25 a day by Interlink. The rest goes RM.

 

[deniser]

I will look into this thanks - is it a signed for service?

Just tried the online price calculator thingey and £1.80 is for untracked and unsigned. Tracked but still unsigned is £4.40.

Need to work out whether the difference is worth the extra aggro caused by missing and uncollected parcels when they are not signed for. A lot go missing when a signature is not required because they won't fit through a letterbox. It probably is. My postage cost is £25kpa so really need to bring it down.

 

[Chris34]

http://www.royalmail.com/parcel-despatch-medium/uk-delivery/royal-mail-24-and-48


The prices I quoted are for the standard service that doesn't have a signature. I think they do a signed for version of the service aswell.




Chris.

 

[Chris34]

The parcels that go missing are your customers trying it on, this is an absolute 100% fact. My parcels that go missing are less than 1 in 200.

If you have more that go missing than this then there is no other reason other than your customers trying it on. None of my parcels fit through a letter box.

My market is a market where you wouldn't expect thieves to try it on as there is no resale value in the product, they are low value and the customers are what you would class as a trustworthy market.

So based on the facts I know how good the Royal Mail are. It used to cost 75p extra for signed for. 200 X 0.75p equals £150. That one parcel in 200 that goes missing doesn't even cost me a fiver so the service isn't worth it for me.

The problem most people have is that they are selling in untrustworthy markets which is why in some sectors you have to have a signature to cover yourself for the unworthy scumbags out there. But I can assure you that the Royal Mail are almost 100% reliable.



Chris.

 

[gibby]

We changed our prices, knocked most of the small stuff into the higher band and just kept the really small stuff with royal mail.
90% of it cost over £5 when we expected it to be cheaper.

Im now thinking its better just to drop RM totally as its far less hassle with the courier

 

[profscooter]

Just spotted this in the latest eBay sellers update regarding the changes to Top Rated Seller new minimum requirements for the autumn (this may also be covered in another thread):

"Today’s buyers increasingly want all the good things you’d find on the high street, combined with a seamless online shopping experience. They expect fast handling times, speedy, low-cost postage and straightforward returns options."

Since these Royal Mail changes, "speedy, low-cost postage" simply isn't available to the average seller. Clearly shows a complete mismatch of expectations between what eBay and the buying public expects and what is actually possible for sellers to achieve.

 

[deniser]

The parcels that go missing are your customers trying it on, this is an absolute 100% fact. My parcels that go missing are less than 1 in 200.

If you have more that go missing than this then there is no other reason other than your customers trying it on. None of my parcels fit through a letter box.

My market is a market where you wouldn't expect thieves to try it on as there is no resale value in the product, they are low value and the customers are what you would class as a trustworthy market.

So based on the facts I know how good the Royal Mail are. It used to cost 75p extra for signed for. 200 X 0.75p equals £150. That one parcel in 200 that goes missing doesn't even cost me a fiver so the service isn't worth it for me.

The problem most people have is that they are selling in untrustworthy markets which is why in some sectors you have to have a signature to cover yourself for the unworthy scumbags out there. But I can assure you that the Royal Mail are almost 100% reliable.



Chris.

Our parcels are much higher value - between £50-200 each - so every one which goes missing - for whatever reason - is quite costly. On balance we've found it better to pay 92p or whatever for the tracking number - just to give the customer peace of mind as well if it is delayed - than to save the money but there comes a point when the maths will reverse this scenario.

We have often switched to non signed for and one will "go missing" in the first couple of days. Using signed for, missing parcels are extremely rare. Interlink have never lost one (touch wood) and RM lose about 1 in 1000.

 

[deniser]

Just spotted this in the latest eBay sellers update regarding the changes to Top Rated Seller new minimum requirements for the autumn (this may also be covered in another thread):

"Today’s buyers increasingly want all the good things you’d find on the high street, combined with a seamless online shopping experience. They expect fast handling times, speedy, low-cost postage and straightforward returns options."

Since these Royal Mail changes, "speedy, low-cost postage" simply isn't available to the average seller. Clearly shows a complete mismatch of expectations between what eBay and the buying public expects and what is actually possible for sellers to achieve.

Yes, ridiculous isn't it coupled with their compulsory returns policies which are way beyond what is legally required at present.

 

[profscooter]

I've just signed the petition at http://epetitions.direct.gov.uk/petitions/46737

 

[deniser]

I've just signed the petition at http://epetitions.direct.gov.uk/petitions/46737

me too......

 

[kulture]

I just thought I would play Devils Advocate for a minute and say that these price hikes could benefit us.

For a long time my business has been affected by cheap hobby sellers who have very low costs and possibly do not pay tax. They cut margins to the bone and undercut more established sellers. Now that anyone who sells less than 1000 parcels a year has a HUGE post price difference, this will undermine the hobby seller and rationalise the market a bit.

Obviously this effect is more obvious in the £10-£30 average order realm.

I pay £1.85 for postage (its the surcharge that adds the £0.05 to the quoted £1.80) and the hobby seller has to pay £5.20+ for the same service. It levels the playing fields....

Now I am ducking ...

 

[Chris34]

I just thought I would play Devils Advocate for a minute and say that these price hikes could benefit us.

For a long time my business has been affected by cheap hobby sellers who have very low costs and possibly do not pay tax. They cut margins to the bone and undercut more established sellers. Now that anyone who sells less than 1000 parcels a year has a HUGE post price difference, this will undermine the hobby seller and rationalise the market a bit.

Obviously this effect is more obvious in the £10-£30 average order realm.

I pay £1.85 for postage (its the surcharge that adds the £0.05 to the quoted £1.80) and the hobby seller has to pay £5.20+ for the same service. It levels the playing fields....

Now I am ducking ...

I fully agree with you, that's exactly what I think. Packet Post used to have a decent edge on the over the counter customers, then over recent years they have equalled the balance with price increases which affected us business sellers. Now with this change it gives business sellers a firm upper hand.



Chris.

 

[Quickpacksupplies]

Are there any alternatives out there which are cheaper , has anyone found?

James

Sent from my Galaxy Nexus using Tapatalk 2

 

[TheGeekestLink]

I pay £1.85 for postage (its the surcharge that adds the £0.05 to the quoted £1.80) and the hobby seller has to pay £5.20+ for the same service. It levels the playing fields....

Now I am ducking ...

You don't need to duck. Something needs to be done about eBay and the other people that are stealing business from legitimate companies to pay for a holiday a year.

It's interesting that Royal Mail never told me that they'd reduced the # of packages to 1000 when I asked a few weeks ago (we've been short of the original 5000 but this will now help to make us so much more competitive).

So thanks! Probably the most useful post all year!

 

[Trisha&ChrisPlant]

It's interesting that Royal Mail never told me that they'd reduced the # of packages to 1000 when I asked a few weeks ago (we've been short of the original 5000 but this will now help to make us so much more competitive).

So thanks! Probably the most useful post all year!

Aha! I was confused by this as I had looked at Packet Post online and couldn't see where everyone was getting min. 1,000 packages from, as the RM info says 5,000 min. Obviously, not up-dated their info yet.

Agreed, probably the most useful post all year!

 

[TheGeekestLink]

Aha! I was confused by this as I had looked at Packet Post online and couldn't see where everyone was getting min. 1,000 packages from, as the RM info says 5,000 min. Obviously, not up-dated their info yet.

Agreed, probably the most useful post all year!

Yep. I can't see the reduction anywhere either. I'll call them and find out (when they open).

 

[Jeff FV]

Yep. I can't see the reduction anywhere either. I'll call them and find out (when they open).

Details* can be found here:

http://www.royalmail123.com/standard_contract.html

and

http://www.royalmail123.com/standard_services.html

* I say details - its not exactly obvious that its talking about PacketPost, but it is.


J

 

[glitter girls]

The new Royal Mail price hike has meant the cost of sending one of our products has gone from £2.70 to £5.65 an increase of 109%.

How can they really think a medium parcel is anything over 8cm in depth. Please sign the petition that is floating around on twitter and fb to do something about it.


Small businesses everywhere are going to be affected and so are consumers. How can anyone running an internet businesses afford to compete against large businesses who get really good volume rates with couriers. I think it is terrible and yet another blow to the entrepreneurial spirit of this great nation.

 

[kulture]

All you have to do is get a business account with The Royal mail so long as you send over 1,000 parcels a year.

 

[Alan]

Well I used to be a fan at £2.20 for 2nd class parcels, but now I just packed an item which was impossible to make 8cms at it was 9 cms. No way Royal Mail, it has gone via courier at £2.50 cheaper than your rates.

Sorry but the price hike was due to incread demand - because you were good value - now you are not - you wont be getting as many parcels - fools.

 

[spamalot]

I don't see what all the fuss is about. This should only affect the smallest of sellers who post less that 3 parcels a day.

Now I've moved over to PacketPost (and got to grips with how it works) my costs have gone down since March. People are saying they're closing their business because of the price increases. How could you have a business when sending so few packages that you can't meet the 1000 a year you need to sign up for PacketPost?

I guess they could sell very few high value items, but I guess in that case they should be using special delivery away.

As has been said, it only really affects the man on the street or low volume sellers... not business who do reasonable volumes. For professional sellers it's a good thing.

 

[planemadgirly]

Ive just got Packetpost(CRL) added to my OBA
Could someone help with this for me PLEASE
1 have 4 packets (2 RM 48 signed for ,2 not signed for) by RM 48
Signed for 1 is 1300 gms,other is 600 gms do i add these 2 together and take an average 950 and buy 2 x 950 and tick the signed for box?
Then on another line put 2 x 800(the unsigned ones) and buy postage
Can the 48 signed for and 48 unsigned go in one sack???
I know that i have to keep them separate from my BPL packets
Thanks

My Rm manager didnt know the answer to the question!

 

[Mister B]

Ive just got Packetpost(CRL) added to my OBA
Could someone help with this for me PLEASE
1 have 4 packets (2 RM 48 signed for ,2 not signed for) by RM 48
Signed for 1 is 1300 gms,other is 600 gms do i add these 2 together and take an average 950 and buy 2 x 950 and tick the signed for box?
Then on another line put 2 x 800(the unsigned ones) and buy postage
Can the 48 signed for and 48 unsigned go in one sack???
I know that i have to keep them separate from my BPL packets
Thanks

My Rm manager didnt know the answer to the question!

Correct...make two seperate entries.

Not sure on the sack questions. We've mixed sacks on a fair few occassions and to date nobodies told us off.

Mister B

 

[planemadgirly]

Thanks a lot...thats what i did on Monday
I put the 48 signed for and 48 unsigned in the same sacks..i can never get enough of those things(manager ordered more for me on 19th March..they have never arrived!!! I have had to mend a load of holy ones today!!!
I keep having to leave notes out for the postie for more

 

[Dmkths]

Just pop down to your local sorting office and ask them to fill a sack of sacks for you.

Regards,

Mark.

 

[ZetlandBoxes]

If any of you guys are still looking for boxes for the new parcel rates then we've just restocked after a crazy couple of weeks selling to loads of businesses affected by these changes.

We've got boxes for the 160mm cube exception as well, which apparently quite a number of postmasters were not initially aware counts as small parcel rate. Google Zetland Boxes for more info.

 

[dag-uk]

My local post office is classing any cube below 16x16x16 as a small parcel ! So, if its 12x12x12 it's a small parcel, is this right ? I thought small parcels had to be no more than 8cm thick ?

Regards,

Dave

 

[Quickpacksupplies]

Quick question - do CRL guys need to update their PPI labels to show 24 and 48 images?

Sent from my Galaxy Nexus using Tapatalk 2