‘Look after the pennies and the pounds will look after themselves’.
You’ve probably been targeted by one of the campaigns being run by the franking machine companies at the moment? They take great delight in telling you how much you can save by switching your business mail from stamps to ‘franks’.
And to some extent it is true, a 50p stamp effectively costs you 31p + VAT plus the cost of the franking machine. You reclaim the VAT so maybe 33p per item? Possibly 32p if you send out loads of stuff? Economies of scale and all that.
So on the face of it a 33% saving which makes perfect sense, why would you still put stamps on? But before you go off and sign your life away to Mr Pitney Bowes or Mr Neo Post just consider this, you can still get your postage even cheaper than this, with less effort on your part.
Option one: sign up for a Royal Mail Online Business Account. This will give you your postage at 31p + VAT on a standard letter. All you have to do is get your envelopes pre-printed with a postage paid impression (PPI) and you may as well have your undeliverable address printed at the same time. Our motive for telling you this? We can supply you with printed envelopes cheaper than you can buy un-printed ones.
Option two: If you are posting more than 500 UK postcoded letters at a time then it would pay you to let us post them for you. Our postage rate for 500 – 4000 letters is 26p + VAT, effectively saving you 5p per item on top of the franking rate, and nearly 50% against the cost of a 2nd class stamp. And if you are posting more than 4000 UK letters at a time our postage costs (under certain simple criteria) can be as low as 19p per item.
And if you ARE posting hundreds of letters at a time then for goodness sake stop it! Time how many you can stuff in an hour. Divide 1000 by that figure and times that by your hourly rate. That is your cost per 1000. So if you can do 250 per hour and you get paid £10 per hour your cost per 1000 is £40. Our inserting costs start at £25 per 1000 for the lower volume jobs.