Royal Mail Price Increase

[Rolo Tomasi]

I've just received the latest price increase notification from Royal Mail for their Packetpost services and it appears that, not only will VAT be charged from 02/04/12 but they have also removed the tiers for the lower weights.

From April the first tier will be 0-750g which will cost £2.19 (plus VAT). This represents a 20% increase for those with average weights currently in the 250g to 500g band.

 

[Chunkford]

Well at least if it effects you it will effect your competition, meaning if you have to increase prices, so will they

 

[Click2Post.co.uk]

Well at least if it effects you it will effect your competition, meaning if you have to increase prices, so will they

...eventually, if you sell on marketplaces such as eBay or Amazon, there are a bunch of sellers, large and small who forget, takes a few months for them to realise their cash flow has decreased and therefore increase prices, or when they receive their Royal Mail bill :redface:

 

[dynamic08]

Is this the same as ppi?

On one account all I send out is 250g - 500g

 

[Rolo Tomasi]

Is this the same as ppi?

Not sure but the full details can be found at:

http://www.royalmail.com/prices2012

There appears to be a number of services where, although RM say the prices will increase in April, they cannot yet say by how much!

 

[kulture]

I love the bit where they try and sell the "improvement" to simplify the ppi service by having just one price point for packets 0-750 gm. A massive price increase for anyone who averages 250 and not god for those who average 500.

I remember when ppi was in 50gm increments.

I am going to have to wait for the final rates to come out, but it may be better for me to use a per item weight.

 

[amyd]

I've just compared the current price sheet to the proposed prices and it appears that we'll be paying less (apart from on the next day delivery)...not sure if I'm getting mixed up?? Hope not! We use packetpost - here's what I've found which is what will effect us:

Large letters:
0-100g = 75p / will be £65p
101-250g = £1.09 / will be 90p


Packets:
251-500g = £2.48 / will be £2.19 (same price up to 750g) 501-750g = £3.05 / will be £2.19


Next Day (Up to £500 compensation):
Up to 100g = £5.45 /will be £5.65
Up to 500g = £5.90 / £6
Up to 1kg = £7 / £7.10
Up to 2kg = £9.05 / £8.90

Up to 10kg = £22.70 / £23.35

Here's the current price list: http://www.royalmail.com/sites/default/files/docs/pdf/RMLT13 Price Guide_4 April 2011.pdf

Proposed prices: http://c435158.r58.cf3.rackcdn.com/RM_Proposed_Contract_Prices_April_2012.pdf

Please let me know if I've got this wrong!

Also - what other delivery services do you guys use? We have been using DHL but since it's teamed with yodel it's been really bad so we're ditching that! So need an alternative courier for next day deliveries.

 

[kulture]

The current prices are lower than your quoted figures. For example the 1st class up to 500gm is £1.824.

You are looking at the wrong price page. See

http://www.royalmail.com/discounts-payment/discounts-packets-uk/packetpost/prices

 

[StageFiveSEO]

I give the Royal Mail a few years. They're now in the 'milk the declining market for all they're worth' stage.

 

[paretowasright]

It looks to me like it will be much better to use the standard account from April which is VAT exempt until the OFCOM decision. The OP is right about parcels 100-250 and 250-500 there is a huge price increase:

>100g 1.36 to 2.36 + VAT
>250g 1.69 to 2.36 + VAT
>500g 1.90 to 2.36 + VAT

 

[mailboxexpress]

Maybe its time to take a look at next day delivery services of next day couriers?

 

[dynamic08]

Yeah and maybe its about time people stopped spamming forums.

 

[biscuitvillage]

We're looking for a suitable alternative to the RM for our webstore. We send around 100 packets a week ranging from 90-800g I just received a letter this morning saying the prices are going up AGAIN in April 2012 and I'm guessing some alternatives out there might be worth investigating... any ideas? :|

 

[my_parcel_delivery]

Hi Guys

We have a number of low weighted services available on the website. Feel free in contacting me on 0161 725 7985.

myParcelDelivery.com is an online comparison site for courier services across the UK domestic and international market, serving Businesses, eBay users and the general public. The site acts as a price and service comparison website for express courier services – where users can use the site for all their parcel delivery needs. Users book their deliveries online and benefit from the high volume discounts the company has negotiated with the major courier firms such as DHL, City Link & TNT.

All the best
David

 

[paretowasright]

The issue here is small packets >750g.
I really wish any relevant courier providers would actually detail some appropriate pricing rather than giving it the 'here is my website and phone number' routine. It reminds me of clueless networkers at events who go around shoving their business cards into peoples hands without engaging and listening.

 

[profscooter]

There's not much competition for RM at the small parcels end of things, sometimes I use Hermes for non time critical items as they are pretty slow, about 3-4 days. But nothing really under £5. For larger parcels and non-UK destinations I also check Parcel2go and Interparcel as well as now myparceldelivery, to see the widest range of couriers and services. Not all couriers appear on all aggregator sites.

 

[my_parcel_delivery]

Hi Rolo

We could handy for your lighter weighted courier requirements? Currently have a number of options available.

myParcelDelivery.com is an online comparison site for courier services across the UK domestic and international market, serving Businesses, eBay users and the general public. The site acts as a price and service comparison website for express courier services – where users can use the site for all their parcel delivery needs. Users book their deliveries online and benefit from the high volume discounts the company has negotiated with the major courier firms such as DHL, City Link & TNT.

Feel free to PM for further information

David
0161 725 7985

 

[wormcity]

I really wish any relevant courier providers would actually detail some appropriate pricing

I know this really annoys me to, each delivery company has its own pricing structure for different volumes.

So you end up having to call every single one, usually have to have a meeting so they can ' see how your business works ' they never mention their fuel surcharge, unless you ask, its such a waste of time and effort, then they put up their prices, and the whole process starts again

Ron

 

[biscuitvillage]

Most of our business is small 100g packets which were classed as letters until a few years ago. Every year the goal posts keep changing and we have little choice but to move with them.

This all seems to be leading to businesses moving away from RM to private companies who can get a better deal using the RM. Crazy!!!