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.