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Friday, 12 July 2013

Friday Guest Blog: Businesses are Overpaying on Postage

By David Hymers, Managing Director at Totalpost Services Plc

There was a bit of a backlash from small businesses following the April change in Royal Mail postage rates. Understandably, many businesses feared that increases in parcel rates could have a negative impact on their business.

However now that the dust has settled, how are businesses coping?

Since the rate change came in Totalpost has been visiting local companies to advise if savings can be made. When visiting a client we always looks to undertake a full mailroom audit to enable an understanding of the level of postage required.

Surprisingly we have found that many businesses have been overpaying on their postage, effectively putting more stamps on packages than is required as they had been sending items as Packet Post and not as Large Letters for example.

For example one customer was spending £2.36 for the majority of the mail that was being sent, they were overpaying by £1.12, simply because they had not been given the support by their current supplier and had not really understood how the Royal Mail pricing system works. They had been sending what was a Large Letter item with weight between 251-500g using the Packet item tariff 0-750g. When the new tariff came into use in April they had thought they would be spending £2.65 each time using the Small Parcel 0-1kg. When Totalpost audited their usage we advised that by making a slight adjustment in the envelope being used and switching to the correct postage they would be making savings of £1.03 against what they had been paying and £1.32 against the new tariff for 2013. Therefore they went from a scenario whereby they thought postage was going to cost them more, to a situation where their costs actually decreased.

This is an issue that we are seeing time and time again within businesses of all sizes. There is a lot of confusion about the different postage sizes and rates and sadly businesses are wasting money as a result. We advise businesses to check postage restrictions again and to consult with their mailroom services provider if clarification is needed.

Unlike a lot of mailroom suppliers, Totalpost’s mailroom experts spend most of their lives in clients’ mailrooms, from this we pick up ideas and pass this information and education on to other customers that we work with. We understand that for a lot of businesses mail is important but perhaps not as important as all those other jobs that have to be done in order for a business to flourish. That’s why we can help clients simply by making a suggestion such as “Why don’t you change that envelope type to this option and whilst your at it can’t that item be folded.” Other suppliers have stopped visiting clients and choose now to do business over the phone. Totalpost prefers that option as a last resort as things can be missed whilst we sit at the other end of a phone.

Mailroom audits are part of the service provided by Totalpost. This gives us a chance to visit customers and ensure that they are getting the best value for money.

To find out more get in touch with Totalpost Tel: 0845 4900360 or visit

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