How businesses can make the most of Royal Mail’s new postage tariff.

Neopost Limited, Europe’s leading supplier of mailing solutions, gave advice today on how businesses can make the most of Royal Mail’s new postage tariff.
Royal Mail still continues to offer franking machine users generous discounts on the cost of a stamp. These include savings of up to 34% for Letters, and up to 21% for Large Letters. On top of discounts applied to franked mail, Royal Mail offers further savings of up to 23.5% for businesses that send 500 to 25,000 letters in a single mailing.

This April, Royal Mail is maintaining a significant difference between stamp prices and the cost of a frank.

Royal Mail’s new postage tariff also brings good news for businesses using a franking machine to send their parcels. With the changes to parcel services, and a reduction in weight bands from 15 to 7, from today it will be at least 35p cheaper to frank a small parcel rather than use a stamp and a medium parcel at least 85p cheaper.

Franking for All

Franking is an economical option for businesses sending as few as 6 letters a day. The price differential between stamp and frank is far from being the only source of savings. Others include:

Time saved by not having to queue for stamps in the Post Office – franking machines can be re-credited online at any time of day or night;
Applying the right postage to letters instead of guessing and putting on too much or too little – do the latter and your customers face a £1 surcharge plus the cost of underpayment;
Easier compliance with the requirements of Royal Mail discount schemes;
Reduced waste – print your business address on envelopes at the same time as the frank and Royal Mail will return undeliverable mail to you free-of-charge so that you can update your database;
Integrated accounting that lets you track, monitor and charge-back postal costs; and
Easier reclaiming of VAT applied to postal services such as Special Delivery and Business Mail – Neopost smart franking machines frank at VAT- inclusive prices and produce VAT invoices to aid re-claiming.

The good news is that small businesses are not powerless in the face of rising prices. By making smarter choices many will be able to improve customer communications and reduce mailing costs. Simple first steps for any size business are to clean address databases – Neopost offers free database health checks to get you started – and to acquire a franking machine.

Neopost’s new “cost cutting” white paper offers advice on how small businesses can save money by making smarter choices to improve customer communications and reduce mailing costs. To download this new white paper visit

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