Following the controversial sale of the Royal Mail, they have surprised the public again with yet another increase to the price of their stamps. As of April 2014, Royal Mail stamp prices have increased to 62p for a first class stamp and 53p for a second-class stamp. The newly privatised company announced their newest price hike on 28th February 2014 via a press release on their website. Following a scandalous backlash over the sale of the once prestigious UK mail service, which is believed to have short-changed the UK taxpayer by as much as £1 billion, this recent price hike is most certainly and unwelcomed one. However, Royal Mail is assuring the UK public that their prices are still amongst the lowest in Europe.
What have reactions been to the increase?
Despite reassurance from Royal Mail’s Steven Agar who explained that their “prices remain amongst the best value for money in Europe, and we have the highest service specification of any major European country”, there are real concerns amongst UK businesses regarding the costs they are now facing. Consumer Futures have reported that the recent price increases are above the current rate of inflation of 1.9%, which has only fuelled UK businesses fire against the Royal Mail. Robert Hammond, director of postal policy and regulation at Consumer Focus has backed UK businesses explaining, “consumers who continue to use it will look much harder at the value for money and quality of service that they get”. The Royal Mail is now under an immense amount of pressure to deliver high service standards to satisfy UK businesses and consumers. Many businesses may now be looking at many other cost effective alternatives to help save money on their postage, as a large letter up to 100 grams will now cost 93p to send first class! Royal Mail are risking losing vital business.
UK businesses already spend a fortune with the Royal Mail to deliver their marketing mail campaigns but with these increases, they are likely to start moving their business elsewhere to save money. Many businesses are unlikely to be able to absorb the spiraling costs of postage within their already tight budgets, and the prospect of passing those costs on to customers is daunting in the current economic climate. Mailing houses such as Baker Goodchild based in Birmingham are already able to offer UK businesses preferential postal rates that can help them to save costs and stay within their postage budgets. For more information visit their website at http://www.bakergoodchild.co.uk.
(source – PRFire)
