It’s with a considerable level of disappointment that we note the double-digit increase in the prices for both business mail and advertising mail. This second price hike within 12 months is due on October 2, 2023. Particularly disheartening is the largest Admail price hike we’ve seen in years, just as JICMAIL reporting has begun demonstrating mails viability as an alternative to more traditional forms of media advertising.
Impact and Implications of the Price Hike on Businesses
The decision by Royal Mail to implement price increases twice within a year is not only disappointing but damaging and likely to have a large impact on businesses that rely heavily on Royal Mail services. Those sending on high volume mailings of direct mail are particularly vulnerable, as this will require a review of current strategies for posting material in order to minimise cost increases.
This comes at a time when the Universal Service Obligation (USO) has continued underperforming even since COVID restrictions were lifted. It is our hope that these important services will return to the required level, especially considering the aggressive rate increases by Royal Mail.
It’s also notable that the Economy product price has increased at a slower rate than the 2nd Class option. It seems that as the USO around Economy mail isn’t as stringent as for 2nd Class, it’s more profitable for Royal Mail to process mail with a slower delivery aim and USO obligation.
There is a growing perception that Royal Mail could be attempting to contract the letter market even further and focus more on their parcel business, given that the pricing for parcels has not risen as significantly as for letter and large letter items.
However, it’s crucial to maintain a positive outlook on post, which, as JICMAIL has demonstrated, is far from obsolete. As a community, we must continue to lobby on behalf of our customers and the industry as a whole so that we may manage these difficult times.
Future Outlook and Strategies for Businesses Amidst Rising Mail Prices
At bakergoodchild, we are committed to providing our customers with cost-effective solutions and ways of working that maximise efficiency. We’ll continue to evaluate Royal Mail prices in order to protect our customers from unnecessary increases.
Our team of experts remains dedicated to finding effective mailing strategies for businesses, regardless of the latest pricing changes. We offer various services to mitigate these increases, ranging from postal incentives and pack design to data cleansing services and postal service and product reviews.
By working together, we can ensure we continue to maximise the potential of postal services.
