UK Postal Rates Increase 6 April 2010 & 2011

I've just received notification from the Royal Mail that postal rates are increasing from 6 April 2010 and this will impact everyone who uses the post but in particular those of use who believe in direct mail. Please see the comments section for th postal rates that apply from 6 April 2011.

The price of a first class stamp will increase to 41p from 39p (up 5.1%).

Second class will increase from 30p to 32p (up6.7%.

Large letter new prices increase by 5p to 66p for up to 100g (up 8.2%) for first class and from 47p to 51p for second class.

Businesses who do a lot of mailing can get discounts by buying in bulk.

It seems that while these increases are large, the regular PostComm has approved a 3p increase in first class mail according to the Beeb, necessary it seems to make up for falling volumes.

Sounds like an example of "death trap pricing" to me, when you keep dividing your costs by the expected volume and coming up with bigger prices which scare away more customers.

I'm a huge fan of direct mail but it does put the emphasis on only sending out strong offers to carefully targeted prospects and written with compelling copy. 

 

Paul Simister is a business coach and a differentiation expert who helps small business owners to profit from differentiation, be distinctive in the eyes of their customers and stand out in a crowded marketplace.

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Comments

[Paul Simister]

Postal rates are also going up on 6 April 2011 and the increase is huge.

Stamps for ordinary letters

First class from 41p to 46p
Second class from 32p to 36p

Large letters

First class from 66p to 75p
Second class from 51p to 58p

Savings are available with a franking account if your volumes justify it

First class letters 39p
Second class letters 28p

First class large letters 55p
Second class large letters 45p

As a say above, I believe in direct mail but these increasing costs make it essential that you only write to strong prospects.

Only this morning I received three catalogues from the same company for office furniture - and there's only me in the company.

This is just wasting money - you may as well burn it and you'd be much better giving it to charity and milking the public relations benefit.

I also worry about what will become of The Post Office. The costs are ridiculous and will drive volume away to other mediums.

I hate email spam where people blast to a compiled list but you can understand the attraction when you see the 2011 postal rates. (Sending to a permission based list is fine - the subscribers have indicated that they are interested in what you have to offer.)

What do you think of these new 2011 postal rates and how will it affect your business?