Royal Mail Price rises from 30 April, 2012

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Royal Mail Price rises from 30 April, 2012

Post by Jack »

http://www.bbc.co.uk/news/business-17522500

The price of a first-class stamp for a standard letter will go up from 46p to 60p on 30 April

A second-class stamp for a standard letter will go up from 36p to 50p on the same date

A first-class stamp for a large letter weighing up to 100g will rise from 75p to 90p

A large letter sent second-class will cost 69p, rather than 58p

Parcels, franked mail, and recorded post will also be going up in price

GULP. Consider those as percentage price rises. OUCH. Must go and buy some mint stamps....
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Re: Royal Mail Price rises from 30 April

Post by aethelwulf »

From 46p to 60p. :shock:

Obviously there's no legislation that limits a price bump to a max. equivalent to rate of inflation.

There'll be a rush between now and the rate-rise on service-inscribed stamps, the "E" stamps for Europe or the Faststamps that just say "letter up to ..."
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Re: Royal Mail Price rises from 30 April

Post by Highlander »

Welcome to rip off Britain. Still when you have to shell out £250,000 for a spot of dinner with the Prime Minister and his wife what can we all expect.
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Re: Royal Mail Price rises from 30 April

Post by ivqii »

This is going to be REALLy interesting - how are they going to control the eg Pensions Credit "allowance" - special stamps? - if not the accounting is going to give post office staff housemaid's groin

And what a fantastic business model.Your business shrinks by 25% so to recover you just put your prices up by 30%
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Re: Royal Mail Price rises from 30 April

Post by gringo »

I'd say more of the same and worse as the Euro fiscal crisis escalates and the 'mug punters' in the UK will be paying for it. Then again they might run a lottery with dinner at No.10 as consolation prize, first prize being free postal charges for the rest of your life.....
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Re: Royal Mail Price rises from 30 April

Post by Global Administrator »

What will a standard letter to oz cost .. does anyone know?
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

A full list of prices can be found at http://www.royalmail.com/prices2012

From what I can see (and from a Machin collectors point of view!):

Second class within UK (to 100g) goes from 36p to 56p (increase of just under 39%)
First class within UK (to 100g) goes from 46p to 60p (increase of just over 30%)

Second class large letter (to 100g) increases from 58p to 69p (19% increase)
First class large letter (to 100g) increases from 75p to 90p (20% increase)

Recorded Signed Up will now be an extra 95p instead of 77p.

Special delivery (to 100g) goes from £5.45 to £5.90
Special delivery (to 500g) goes from £5.90 to £6.35

International rates also increase:

Postcards from 76p to 87p
Letters (to 10g) to Europe from 68p to 87p
Letters (to 10g) to Rest of World (ROW) from 76p to 87p
Letters (to 20g) to Europe from 68p to 87p
Letters (to 20g) to Rest of World (ROW) from £1.10 to £1.28
Letters (to 40g) to Europe from £1 to £1.28
Letters (to 40g) to Rest of World (ROW) from £1.65 to £1.90

Hope I've covered all the important rates. No doubt Ian (norvic) will add to this.
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

Now, what new Machins will we see - reckon 87p, £1.28 and £1.90, as the rest are covered by NVIs.

To be honest I don't know why Royal Mail doesn't consolidate its postal rates. Why not abandon 1st and 2nd class mail? Would a single inland rate save money i.e. no need to distinguish between two different rates? Just a thought.

Also, why have 10g, 20g and 40g rates for overseas destinations? So many countries have combined their overseas rates e.g. in Australia the basic rate covers overseas letters up to 50g.
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Re: Royal Mail Price rises from 30 April

Post by CMJ »

Global Administrator wrote:What will a standard letter to oz cost .. does anyone know?
Based on weight but these are the new and old (in brackets) rates.

10g £0.87 (£0.76)
20g £1.28 (£1.10)
40g £1.90 (£1.65)
60g £2.38 (£2.07)
80g £2.89 (£2.51)
100g £3.30 (£3.19)

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Re: Royal Mail Price rises from 30 April

Post by CMJ »

Based upon a very rapid analysis, there are some even bigger price rises than the 30% on First Class.

For packets there used to be separate prices for 100g (£1.58), 250g (£1.96), 500g (£2.48) and 750g (£3.05). Now there will be a single rate for 0-750g (£2.70).

Cheaper if you are sending heavier items but if you are sending lighter ones the rise is £1.58 to £2.70 (70%).

The link between the price of a first class stamp and compensation for lost items has been broken. It used to be 100 x First Class Rate (i.e. £46). It now remains at a fixed level of £46.

The prices for International mail are also getting a shake up.

Letter rates to Europe are increased by 28% for up to 100g
Letter rates to Rest of the World are increased by 15% for up to 100g

There is some good news if you send items weighing more than 100g at the “letter” rate as these items will now automatically priced at the cheaper “small packet / printed papers” rate. But, the banding for Small Packets which used to be in 20g increments is now in 50g increments.

As you would expect this leads to some anomalies with
Europe seeing changes between -13% and +45%
ROW sees -33% to +3% (mainly negative)

However, as most things weighing more than 100g are probably already sent at the lower “small packet” rate, these are not real reductions and the reality is:
Europe - increases from 36% to 81%
ROW - increases from 22% to 66%

Finally, The “Rest of the World” has also been re-split into Zone 1 and Zone 2, with Zone 2 at a higher price for > 100g. Zone 2 seems just to be Australia and New Zealand from the small map on the leaflet.

Definitely time to stock up on NVIs, especially as they are valid on international mail too.

Chris.
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

CMJ wrote:Finally, The “Rest of the World” has also been re-split into Zone 1 and Zone 2, with Zone 2 at a higher price for > 100g. Zone 2 seems just to be Australia and New Zealand from the small map on the leaflet.

Definitely time to stock up on NVIs, especially as they are valid on international mail too.

Chris.
Didn't even notice this - why single Australia and NZ (and probably the Pacific nations) out as Zone 2.

Also, why bother having a Zone 2 rate - even for 2kg parcel the difference is £1.18 (£26.28 compared to £27.46). Hardly seems worthwhile separating the rates????
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Re: Royal Mail Price rises from 30 April

Post by aethelwulf »

How much can you send and be under the 10g rate? A single sheet of paper in the thin-paper airmail envelope? That seems like a step that could be eliminated...have "up to 20g" and "up to 50g"...they're have a muddle of counting 10,20,40 then other things are 50,100.
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

aethelwulf wrote:How much can you send and be under the 10g rate? A single sheet of paper in the thin-paper airmail envelope? That seems like a step that could be eliminated...have "up to 20g" and "up to 50g"...they're have a muddle of counting 10,20,40 then other things are 50,100.
I believe some of these oddities hark back to when Britain changed from imperial to metric weights on 29 September 1975.

The basic 2nd and 1st class rates for domestic mail covered mail up to 2 ounces, which became 60g (2.1oz). Ironically, this was suppose to be at least one year, and I believe lasted until Royal Mail introduced Pricing in Proportion 31 years later!

Overseas rates had rates in multiples of 10g (0.3oz) in place of old 1/2 oz (14g) multiples. The initial rates were 15g, 30g, then 40g, and later changed to 10g, 20g and 40g.

Fascinating how long it can take for something to change (or not change!).
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Re: Royal Mail Price rises from 30 April

Post by norvic »

Here's my summary - of course I was out at the dentist this morning when this was due to be announced.

British Stamp collecting just got very expensive.....
... and the costs of mail order, including eBay auctions, will also hit small buyers.



Royal Mail have announced their 2012 price rises, to take effect from 30 April 2012.

Headline changes:
1st class letters rise from 46p to 60p
2nd class letters rise from 36p to 50p

1st class Large Letters up to 100g rise from 75p to 90p, while 2nd class rise from 58p to 69p;
the next step 101-250g rises from £1.09 to £1.20 1st and 92p to £1.10 2nd.

But a fundamental change comes in the restructuring of packet rates. Currently as low as £1.58 and £1.33 for 1st & 2nd class under 100g (which would include very light electronic items in crush-proof boxes) the 100g, 250g & 500g steps have now been merged into a 750g minimum rate of £2.70 1st and £2.20 2nd. The current 501-750g rate is thus reduced from £3.05 and £2.61, but all the other rates rise.

The recorded signed for premium rises from 77p to 95p. Thus a 1st class RSF letter becomes £1.55 (from £1.23) and 2nd class £1.45 (from £1.13).

Special Delivery 1pm next day rises from £5.45 to £5.90 including postage.

Standard Parcels up to 2kg rise from £4.41 to £5.30.

Post Office Box users suffer a massive increase for the third year running, up this year from £170 to £185, now plus VAT at 20% making £222.

International rates: Airmail
The worldwide postcard, and European 20g letter rates rise from 68p to 87p. The Worldwide 10g letter (previously 76p) also becomes 87p.

The Worldwide Letter 20g rate rises from £1.10 to £1.28.

Small packets up to 100g rise from £1.49 to £2.70 Europe, and from £2.07 to £3.30 Worldwide. This huge hike must be passed on to customers around the world who will see the costs of collecting rise.

Small Packets and Printer Papers over 100g change from 20g steps (to 300g, 100g steps thereafter) to steps for 101-150g, 151-200g and then 100g steps to 2kg. As an example of the new prices 300g is up from £2.61 (E) and £4.26 (W) to £3.62 (E) and either £5.54 or £5.70 for World rates which are now resplit into two Zones. Europe still includes all of the former USSR, right through to the Pacific, Zone 2 is Australasia, and Zone 1 is the rest of the world.

Surface Mail basic changes are 20g letters up from 66p to 77p, 100g small packets up from £1.12 to £2.20 (still cheaper than the airmail rates, but in future more expensive than current airmail rates.

International Signed For is up top from £4.95 to £5.15. Airsure rates are complicated by VAT so I'll look at them later.

A leaflet can be downloaded from Royal Mail's website.

New definitive stamps will be 87p, £1.28 and £1.90, to be issued around 24th April.
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Re: Royal Mail Price rises from 30 April

Post by Jack »

Hope the dentist was less painful than this will be...
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Re: Royal Mail Price rises from 30 April

Post by Highlander »

Well at least most of them are never cancelled so maybe they will address that problem by issuing extra Biro's to the diligent staff, below S.delivery received today (minus the £5 orange just covering the address )


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Re: Royal Mail Price rises from 30 April

Post by norvic »

Jack wrote:Hope the dentist was less painful than this will be...
Yes thank you, no pain, just a polish - and all the while knowing that I was missing the announcement!

I've just emailed customers to say that international costs of postage have increased at the lowest level by 50%, and some overheads, eg the PO Box charge have also added to the woes. Lord knows how this will affect business.

Cost of a set of Faststamps (Post & Go) rises from £5.40 to £6.42 - people who collect sets of 36 face a rise of £6.12 to £38.52 - and that's just face value.
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Re: Royal Mail Price rises from 30 April

Post by Machaggis52 »

aethelwulf wrote:How much can you send and be under the 10g rate? A single sheet of paper in the thin-paper airmail envelope? That seems like a step that could be eliminated...have "up to 20g" and "up to 50g"...they're have a muddle of counting 10,20,40 then other things are 50,100.
You cannot pack a single stamp properly at under 10g. They are a bunch of witless and greedy bastards.
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Re: Royal Mail Price rises from 30 April

Post by jpizzle »

Highlander wrote:Well at least most of them are never cancelled so maybe they will address that problem by issuing extra Biro's to the diligent staff,
They don't even supply pens :lol:

I cancelled a stamp with an orange pen on Saturday, and the customer came out of his door and asked if it was a special Royal Mail pen that had been used.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

aethelwulf wrote:How much can you send and be under the 10g rate? A single sheet of paper in the thin-paper airmail envelope? That seems like a step that could be eliminated...have "up to 20g" and "up to 50g"...they're have a muddle of counting 10,20,40 then other things are 50,100.
A single sheet of paper, maybe 2 in an ordinary c6 envelope. Competition entries, lottery tickets, cheques, etc. Plenty of stuff can go for 10g.
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Re: Royal Mail Price rises from 30 April

Post by jpizzle »

I went to stock up on some Europe stamps today. I tried 3 Post Offices which would only offer me the 68p green Machin stamps, and one even tried to deny the existence of Europe stamps, saying only the 68p ones could be bought. Only the fourth let me buy the book of 4 NVI version stamps.

It's a conspiracy :shock:
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Re: Royal Mail Price rises from 30 April

Post by Highlander »

At least feebay saw it coming when they introduced final value fees on postage too :roll:


My local postmaster was too busy complaining how much the cigarettes had gone up in last weeks budget.

Time to test this common market out and I may source my postage from one of the member states, bit of competition to help peg the prices back a bit :wink:

At least stampboards prices are not set to rise, how do you do it Glen :?
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Re: Royal Mail Price rises from 30 April

Post by mozzerb »

Simply a preparation for privatisation, to reflect the actual costs of running the business and bring the financial position into profit, instead of holding down the price as a public service. Another major contribution to this end -- one that rather slipped under the radar -- was the fact that the Government have now taken on the £9.5bn pension fund liabilities so that the privatised company doesn't have to pay for them, thus making it more attractive to the IPO crowd.

Of course, steps like this could have been taken before in order to either make the service break even, or admit it was worth subsidising as a public good. Unfortunately, the concept of a public service goes against the doctrine of the modern Tory party. (And yes, Labour bought into that nonsense far too much too, but at least they never went this far.)

I'm not expecting this to produce the better service and cheaper prices that the private enterprise fairy is supposed to bring -- for network-effect services, which is what most public services are (or rather were), it usually goes the other way, as you effectively replace a public monopoly with a private one. Still, the knives have been poised for years, so I'm not surprised.
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Re: Royal Mail Price rises from 30 April

Post by ivqii »

Isn't it funny that every business that Adam Crozier has ever run has been found to be a shambles after he left
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Re: Royal Mail Price rises from 30 April

Post by Feebletodix »

A slight digression, we know who the preferred buyer is, HM Revenue & Castrations already send out their mail by TNT, you know the tax deliquents. :evil:

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Re: Royal Mail Price rises from 30 April

Post by Global Administrator »

Highlander wrote:
At least stampboards prices are not set to rise, how do you do it Glen :?
I charged your Visa card for the usual 20 quid annual Scottish membership, VAT free I might add. :mrgreen:
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Re: Royal Mail Price rises from 30 April

Post by Rob K »

Highlander wrote:Welcome to rip off Britain. Still when you have to shell out £250,000 for a spot of dinner with the Prime Minister and his wife what can we all expect.
Come on, what else can you buy for 60p these days? I consider it a minor miracle that, even after these "huge" increases, I can send a letter from London to the Outer Hebrides and have a reasonable chance of it arriving the next day, for less than half the price of a cup of coffee. Consider the price of fuel etc and I'm amazed the prices aren't going higher.

By the way, if you stock up on 1st and 2nd class stamps (regular and large letter) now, you will actually see your postage costs go DOWN in many cases if you use the right combination of stamps.

e.g. the first class large letter second weight step (101-250g) is currently £1.09. The price goes up to £1.20 on April 30... but if you use 2 x 1st class stamps, bought at 46p each now but worth 60p after April 30, you will get the same service for 92p - so the price goes DOWN 17p instead of UP 11p :)

Similarly the next weight step up (251-500g) first class large letter was £1.46 and goes up to £1.60... but use the right combination of stamps (2 x 2nd class + 1 x 1st class) bought at today's rates (36p and 46p respectively) but worth 50p and 60p after April 30, and you pay just £1.18 - a saving of 28p instead of an increase of 14p.
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Re: Royal Mail Price rises from 30 April

Post by Jack »

'Outer Hebrides and have a reasonable chance of it arriving the next day,'

As some one who has spent a lot of time in the Western Isles, I wouldn't count on it; the mail plane is often cancelled due to the weather.

More seriously this appalling hike is only looking towards making the business model fail. Pricing yourself out of the market is not a way to win. It will only encourage email and discourage people from sending birthday and Xmas cards. They need to look at costs, consider

1) There is no need for 6 day a week delivery with the fast declining mail volumes, Australia lost that when, late 1960s or early 1970s? Five days a week is ample, probably four days a week is justifiable. If you go to 5 days a week that's a 1/6 reduction in labour delivery. Four days a week means a third less posties needed.

2) If doors do not open onto the street then all people should be forced to have a letter box at the street on their land. It is a ridiculous waste of labour for posties to have to walk to the door to deliver mail.

3) Or more radically, make PO boxes free with the aim of doing away with delivery - like in the United Arab Emirates - in ten years time. That way you get rid of all Posties delivering normal mail.

So, I've solved all the cost problems with no increase in cost of stamps.... (And I spot a pig flying out my window as well!!)
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Re: Royal Mail Price rises from 30 April

Post by mozzerb »

Jack wrote:More seriously this appalling hike is only looking towards making the business model fail. Pricing yourself out of the market is not a way to win. It will only encourage email and discourage people from sending birthday and Xmas cards. They need to look at costs, consider

1) There is no need for 6 day a week delivery with the fast declining mail volumes, Australia lost that when, late 1960s or early 1970s? Five days a week is ample, probably four days a week is justifiable. If you go to 5 days a week that's a 1/6 reduction in labour delivery. Four days a week means a third less posties needed.
So increasing artificially-held-back prices is making the business model fail, but drastic cutbacks in the service offered is the way to win?

It might come to that, but it's not going to help the business much. Four days a week is probably commercial suicide.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

Porcine aviators to the fore!!

Taking one of your last points first, you will have noticed that some postal services have been cut back to the stage where they are no longer asked for, so no longer available or likely to disappear soon. In no particular order:

Reply-paid postcards
Paquebot
Commonwealth reply coupons
Avis de Reception service
aerogrammes
international reply coupons

Add to the list of contenders, Post Office Boxes. Convenient for the customer they are inconvenient for Royal Mail. They take up space, they have to be administered, and there are several options which only add to the inconvenience. You can collect from your box (but only when the office is open), you can have box-addressed mail diverted to the street address, or vice-versa. So I think the UAE model is not likely to work!

As for 6-day delivery, Saturday will be the most important day for people who work to receive their mail-order purchases, so that won't work. Tuesday is a possibility, or maybe Monday. Tuesday is very light from now until October, but Wednesday is heavy. Don't know why this is.

"Pricing yourself out of the market is not a way to win. It will only encourage email and discourage people from sending birthday and Xmas cards"
Well the bellyaching card retailers ought to look at their prices: £2 for a single fold card with multi-colour printing on a glossy side and monochrome on the inside, + and envelope in a clear sleeve? Please! When the price of a card gets closer to the price of a stamp then maybe there will be cause to complain. Plan ahead, use 2nd class instead of 1st, and buy a cheaper card. It's not the postal service that's out of touch; cross-subsidisation is not a good business model and the cost of handling social mail like greetings cards is probably still not covered by the new prices. (Else why would the franking rate be so much lower - metered mail will be 44p 1st class and 31p 2nd class.)
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Re: Royal Mail Price rises from 30 April

Post by norvic »

mozzerb wrote:So increasing artificially-held-back prices is making the business model fail, but drastic cutbacks in the service offered is the way to win?

It might come to that, but it's not going to help the business much. Four days a week is probably commercial suicide.
Absolutely right, as the new regulator recognised and as I reported. The answer lies in the meat of the Consultation Paper.
ofcom wrote:"1.21 There is widespread recognition that the approach to regulation adopted in the past, has failed in the face of the particular circumstances affecting this sector.
1.22 To date, the approach adopted has been based on price controls - similar to those used in most other utility sectors. In normal circumstances this approach is an effective means of preventing private operators from earning excessive profits, thereby providing incentives for firms to reduce costs, while at the same time protecting consumers from excessive prices. It is an approach that is widely used by regulators, including Ofcom, to regulate private operators with significant market power.
1.23 The recent experience of postal regulation, however, has demonstrated all the weaknesses of price controls with none of the benefits. In a highly uncertain market, price controls have removed the flexibility that would allow Royal Mail to adjust to changes in demand, while at the same time Royal Mail has been unable to improve efficiency, either at the rate expected by the regulator when the price control was set, or at the rate set by its own internal targets at the time.
1.24 Furthermore, price controls on Royal Mail have served less and less to protect customers from price rises. Since 2006 Royal Mail's financial position has led it to apply to the regulator for price rises over and above those consistent with the regulatory formula. In November 2010 Royal Mail applied to Postcomm for additional flexibility to increase prices, resulting in price rises averaging 12% for 2011-12. In the light of its primary duty towards the universal service, Postcomm granted these applications.
1.25 We therefore consider that price controls in this sector have failed in recent years. The reasons for this are clear. First, in a highly uncertain market environment, where the level and pattern of demand is so unclear, it is not feasible to expect to predict accurately whether a given price trajectory is sufficient to allow the universal service to be financed. If the price control that is set turns out to be to be too tight, it will not allow for the universal service to be financed. If, on the other hand, it is set too loosely, it will provide little protection and inadequate efficiency incentives."
Similar price controls on utilities - water, electricity, gas - work because demand will be less elastic. Supply of these services satisfy basic wants in economic terms (blimey it's 45 years since I studied economics!)

The same system won't work with the postal service because some of the demand is much more elastic. Aside from any provision of alternative methods of communication (text, email, paperless invoicing), users have the choice on whether to send many letters and cards or not.
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

Just a few 'off the cuff' thoughts.

Australia Post is opening more 'super post offices' which have extended hours and 24 hour services. These allow people to collect mail after hours. Would this work in the UK?

Do Post Offices in the UK raise revenue through other means? Last time I visited they did banking, insurance, foreign currency and greetings cards.

In Australia you can do your banking, get insurance, buy greetings cards, pay your bills, get foreign currency, do various government activities (identity checks, passports, licenses etc.), as well as selling an assortment of gifts, stationary and basically everything but the kitchen sink. In many country towns the post office doubles as a bank, government bureau etc., especially when many government services have been reduced, and the banks have pulled out.

Interestingly, Australia Post is one of the few post offices which makes a profit. Not saying that there's a connection between offering all these services, but it'd be interesting to see why Australia Post can turn a profit - we have lower basic postal rates, and some of our mail covers much bigger greater distances.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

Chris

The answer to most of your questions about POs in the UK is - yes! They can and they do.

But what is under discussion here is the entirely separate Royal Mail letters and packets handling and delivery business, the future of which is dependent on e-commerce. In most instances delivery (or collection if you are out) is not dependent on the PO branch, but you can have delivery to a PO instead. But the fundamental thing is RML.
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Re: Royal Mail Price rises from 30 April

Post by dynamode »

On the plus side;

If like me you are a bit of a hoarder, then your collection of 1st and 2nd class stamps and/or booklets have just increased in value significantly.

I wonder if the catalogue values will go up in line with the price increase.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

dynamode wrote:On the plus side;

If like me you are a bit of a hoarder, then your collection of 1st and 2nd class stamps and/or booklets have just increased in value significantly.

I wonder if the catalogue values will go up in line with the price increase.
Dealer selling prices will: although selling a set of 10 x 1st class stamps at £5.50 still makes a profit, there is an opportunity cost loss - the opportunity cost being £6.00 (ie what benefit the dealer could get from actually using them).

[Darn, it's that economics again - and I failed A level! How? !]
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Re: Royal Mail Price rises from 30 April

Post by 60022Mallard »

I would have thought the best way forward for the Post Office would be to abolish first and second class for mail that can be sorted by machine. Much of the present bottom tier envelope size, thickness and weight cannot easily be machine sorted - hence the number of eBay packages I receive uncancelled. The bottom tier should be restricted to maximum what I call A4 folded three times size envelopes and about 2mm thick and way under 100grams.

This would enable the most used and machine friendly item postal prices to be kept down and the price for awkward "eBay" items to be more appropriately charged.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

60022Mallard wrote:I would have thought the best way forward for the Post Office would be to abolish first and second class for mail that can be sorted by machine. Much of the present bottom tier envelope size, thickness and weight cannot easily be machine sorted - hence the number of eBay packages I receive uncancelled. The bottom tier should be restricted to maximum what I call A4 folded three times size envelopes and about 2mm thick and way under 100grams.

This would enable the most used and machine friendly item postal prices to be kept down and the price for awkward "eBay" items to be more appropriately charged.
I'm surprised that you don't know that "the bottom tier' as you call it is, and has been since August 2006, restricted to c5 envelopes under 5mm thick. What you refer to are c6 or DL, in either case folded only twice from A4 (folded 3 times would make them too thick (and quite small!)

A standard letter up to 100g covers c5 and smaller and DL and smaller - a maximum of 165mm x 240mm x 5mm and all for 36p currently, 50p in future. These are, of course, machinable which is why the price is quite low; nonetheless under current accounting practices they still make a loss on these. Of course the bulk of the mail of this sort is non-social, ie business, which is subject to significant discounts.
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Re: Royal Mail Price rises from 30 April

Post by PennyBlack1840 »

Yep a savage increase, but the more worrying thing is what happens in future years as OFCOM has effectively given Royal Mail carte blanche to charge what they want.

The 'safeguard' they happily cite is that for 7 years the cost of a second class stamp up to 100g cannot exceed 55p plus inflation (RPI). That's fine in essence but of course only covers 2nd class, so 1st class and any other services will be a free for all.

2nd class increase is marginally under 39% - buy stamps ahead for the next 5 years now because that's more than your savings will get!

Peter
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Re: Royal Mail Price rises from 30 April

Post by CollectorColin »

Highlander wrote:Welcome to rip off Britain.
Nice little knee jerk reaction there except that, in fact, even at 60p we are among the cheapest in Europe.

Welcome to cheap postage Britain.
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Re: Royal Mail Price rises from 30 April

Post by norvic »

PennyBlack1840 wrote:2nd class increase is marginally under 39% - buy stamps ahead for the next 5 years now because that's more than your savings will get!

Peter
This is indeed the best option if I want to keep my postage prices to customers low!

NVIs exist for:
2nd class, up from 36 to 50p - 39%
1st class, up from 46 to 60p - 30% all forms including faststamps
2nd Large, up from 58 to 69p - 19%
1st Large, up from 75 to 90p - 20% all forms including faststamps
Airmail postcard, up from 76p to 87p - 14% (booklets and faststamps)
Europe 20g, up from 68p to 87p - 28% (booklets and faststamps)
World 20g, up from 110 to 128p - 16% (Olympic defin and faststamps)
World 40g, up from 165 to 190p - 15% (Faststamps only)

So the best investment buy is 2nd class, followed by 1st class - and there are very many se-tenant blocks of the latter.
Next best, for some variety, is the Europe 20g booklets.

I think for a while customers will get blocks of 1st class and some old slow-moving sets from recent years in their postage!
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Re: Royal Mail Price rises from 30 April

Post by norvic »

Cartoonist Tony Hall is known for his sharp and timely observations in our regional newspaper, the Eastern Daily Press.
(Please note the restrictions on reproduction below the image.)


Image
(The image has been reduced in size to make it suitable for the blog; to see a larger version, just click anywhere on the image.)

First published in the Eastern Daily Press, Norwich, England 29 March 2012.
Reproduced by kind permission of the EDP and of the artist Tony Hall to whom Copyright belongs.
Further reproduction strictly forbidden without permission of the artist.
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Re: Royal Mail Price rises from 30 April

Post by jpizzle »

I wasn't sure where to put this. Royal Mail must lose loads in lost revenue through uncancelled stamps that people use again. Especially on items with large letter stamps. But today a saw what seems to be a new cancellation mark for the first time.
Image
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Re: Royal Mail Price rises from 30 April

Post by norvic »

This postmark is designed for 'large flats', usually in the form of a4 magazines. The British Postmark Society ensured that one of its newsletters received this postmark in its early days. The lower set of wavy lines can be removed or added as thought necessary for the mailings received.
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Re: Royal Mail Price rises from 30 April

Post by mozzerb »

While updating the GBPS rates site from the latest Royal Mail PDFs, I noticed one oddity: the rates for letters and for printed papers/small packets are now generally identical, except that the prices to Europe for the first printed papers/small packets step of 100g are now higher than the equivalent for letters. :?:

Airmail: Letters £2.21, printed papers/small packets £2.70
Surface: Letters £1.84, printed papers/small packets £2.20

I can't see why it would ever be worth sending basic rate stuff as anything other than letters now, except for customs declarations to non-EU countries and the like (all you sellers on eBay etc do add customs declarations to the stuff you send? Thought not). What am I missing here?
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

mozzerb wrote:While updating the GBPS rates site from the latest Royal Mail PDFs, I noticed one oddity: the rates for letters and for printed papers/small packets are now generally identical, except that the prices to Europe for the first printed papers/small packets step of 100g are now higher than the equivalent for letters. :?:

Airmail: Letters £2.21, printed papers/small packets £2.70
Surface: Letters £1.84, printed papers/small packets £2.20

I can't see why it would ever be worth sending basic rate stuff as anything other than letters now, except for customs declarations to non-EU countries and the like (all you sellers on eBay etc do add customs declarations to the stuff you send? Thought not). What am I missing here?
Guess, it costs more to handle a 'small packet' since they can't go through the automatic sorters. Perhaps this is Royal Mail's way to recoup some of the extra costs?
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Re: Royal Mail Price rises from 30 April

Post by stampchris »

Does anybody know what values the new Regional stamps will have?
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Re: Royal Mail Price rises from 30 April

Post by Global Administrator »

'The price of a first-class stamp for a standard letter will go up from 46p to 60p on 30 April'

That is around a 32% hike.

Were any rates a higher % rare?

I am typing my next column right now and need to lodge it in hours.

Can somenoe please scan a current NVI stamp that can now be bought for 46p that will be good next month for 1st class 60p?

Thanks. :)

Glen

high rez scan appreciated to glen at glen stephens dot com
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Re: Royal Mail Price rises from 30 April

Post by Iggy »

Global Administrator wrote:
Can somenoe please scan a current NVI stamp that can now be bought for 46p that will be good next month for 1st class 60p?
Email sent
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Re: Royal Mail Price rises from 30 April

Post by Global Administrator »

Perfect timing - thanks Iggy. :)

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Re: Royal Mail Price rises from 30 April

Post by norvic »

Global Administrator wrote:'The price of a first-class stamp for a standard letter will go up from 46p to 60p on 30 April'

That is around a 32% hike.

Were any rates a higher % rare?
Yes, much. In 1974/75 rates were as follows

24 June 74 - 1st 4½p 2nd 3½p

17 March 75 - 1st 7p 2nd 5½p

29 Sept 75 - 1st 8½p 2nd 6½p

The March increase was 55% 1st class , 57% 2nd class
Add in the September increase and the difference between the first and last of these was 88% and 86%, although the annualised rate would have been lower.

Very few people think back to that period but we had a labour administration and we civil servants were on monthly CoL adjustments to our salaries!
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