royal mail rates for items just over the 25mm thickness?

Discussion in 'General Business Forum' started by Karimbo, Oct 2, 2017.

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  1. Karimbo

    Karimbo UKBF Ace Free Member

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    I am not a royal mail business customer. I have purchased stuff on ebay for £4 (free postage) that were cube shaped and they were delivered to my door.

    I was always mystified as to how it was viable to send these using royal mail and make a profit on it.

    Anything over 25mm in thickness is £2.90 (2nd class). Am I missing something here? Are people selling stuff on ebay making pennies in profit while they are paying the lions share in postage, ebay, paypal fees, wholesaler fees?

    Or does royal mail offer big discounts to business customers?

    I need to sell a small batch of items (40 units), and can't believe how expensive postage is.
     
    Posted: Oct 2, 2017 By: Karimbo Member since: Nov 5, 2011
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  2. Mr D

    Mr D UKBF Legend Free Member

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    The post office counter rates are expensive.
    With franking or a business account the prices to post are cheaper. Add in volume and you are looking cheaper still.

    Something that is sold for 4 pounds with free delivery may well be pennies to buy. And making pennies on the deal even.
    Just their costs may be cheaper than your costs and the seller may have other stuff and other reasons to sell it so cheap.
     
    Posted: Oct 2, 2017 By: Mr D Member since: Feb 12, 2017
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  3. ADW

    ADW UKBF Enthusiast Free Member

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    Did not think it was that much cheaper to be a business account holder with volume posting.

    Might be doing what one of the world's largest ebayers did though only declaring a fraction of the post being sent with RM. Know the right people and send a truckload and get charged for a handful of bags.
     
    Posted: Oct 2, 2017 By: ADW Member since: Oct 25, 2007
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  4. Karimbo

    Karimbo UKBF Ace Free Member

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    Wouldn't surprise me. I took part in royal mail survey in order to help royal mail track its efficiency of it's service. I had to record whether the stamps were marked as used and/or had the digital stripe printed on which suggests that the machine has charged the service. I was amazed to find that more than half never get overstamped and franked mail do not have the machine stamp on.

    I think RM are probably losing a lot of money by not charging franking mail correctly.
     
    Posted: Oct 2, 2017 By: Karimbo Member since: Nov 5, 2011
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  5. Karimbo

    Karimbo UKBF Ace Free Member

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    I really posted just to find out what the discounted business account rate is compared to the retail price.

    Anyone privvy to that information? At the moment it's cheaper for me to do hermes £2.79 (vatted) rather than royal mail 2nd class at £2.90 (no vat).
     
    Posted: Oct 2, 2017 By: Karimbo Member since: Nov 5, 2011
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  6. Mr D

    Mr D UKBF Legend Free Member

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    Posted: Oct 2, 2017 By: Mr D Member since: Feb 12, 2017
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  7. Karimbo

    Karimbo UKBF Ace Free Member

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    Thanks for that, very handy. I was expecting the bulk savings to be a lot more than that. It still works out the same price as hermes (ex vat). It might be worth going for the hermes discount instead of RM.
     
    Posted: Oct 2, 2017 By: Karimbo Member since: Nov 5, 2011
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  8. Mr D

    Mr D UKBF Legend Free Member

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    Bulk prices are more than that.
    That £2.09 is based on only about 250 items a day.
    A busy company with staff can knock a bit off that again. If you have truckloads think less than half the post office counter price.

    Used to be the real savings on Royal Mail were the average weight.
    Send a 19kg item for same cost as a 100g parcel 1st class, send a 1.99kg parcel for same price as 100g parcel 2nd class.
    Have not done that in a while.
     
    Posted: Oct 2, 2017 By: Mr D Member since: Feb 12, 2017
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  9. Karimbo

    Karimbo UKBF Ace Free Member

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    It doesn't seem to scale very well. 250 parcels a day (65,178 a year, not counting saturday and sunday) gives you 48hr at £2.09

    But do just 1000 parcels a year and you get royal mail 48 for £2.15. (as per page 16)

    There doesn't seem to be a lot of difference between someone doing 1000 packages and somone doing 65,000 packages a year. Lest not forget the person doing 65K packages a year is only getting the discount by doing extra work self-sorting their mail.
     
    Posted: Oct 2, 2017 By: Karimbo Member since: Nov 5, 2011
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  10. Mr D

    Mr D UKBF Legend Free Member

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    Add in volume discounts....

    65000 parcels is not that much. Figure what? 5 or 6 staff doing 25 to 30 hour week.
     
    Posted: Oct 2, 2017 By: Mr D Member since: Feb 12, 2017
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