Online Model Sellers: Will new UK postage rates from 2 April impact on your business?

[Oldironsides]

I've just been to the Post Office with a small but wide (over 8cm) package, only to learn that today it will cost me £2.20 to mail; however from Tuesday 2 April that goes up to a whopping £5.20 as it will then be classed as a 'medium parcel'.


I don't know how small online model traders relying on Royal Mail will manage with such uneconomical postage charges.

 

[1969]

From what I gather they are also dropping Standard parcels, basically I think it has to go `signed for` or `special delivery` which inevitably incurs a higher cost, I wonder if this move to `signed for` and `special delivery` is to eliminate all those supposedly lost parcels that never arrived which must cost the Post office milions of £s in compensation pay outs.
Small Packet is also being dropped and it will be small or medium parcel, anything bigger has to go via Parcelforce.

No doubt it will make sending parcels more expensive.

Steve

 

[housecarl]

Won't be much of this then.
Carl.

 

[elgreco]

We pointed out these raises about 2 weeks ago on PF.

Letters have stayed the same but the changes are as follows:
Small Packet has been replaced by Small Parcel and Medium Parcel which have also different prices: up to 1kg and between 1 to 2 kg. So:
- Small Parcel up to 1 kg: First Class = £3.00; Second Class = £2.60
- Small Parcel 1-2 kg: First Class = £6.85; Second Class = £5.60
- Medium Parcel up to 1kg: First Class = £5.65; Second Class = £5.20
- Medium Parcel 1-2kg: First Class = £8.90; Second Class = £8.00
There is no pro-rata pricing between 1 to 2 kgs.
Small Parcels have a maximum height of 8cm with exceptions. More details here: http://www.royalmail.com/parcels-made-easy
For Signed For deliveries, add an extra £1.10 (up from 95p).

Royal Mail is basically pricing itself out of the market.

Celine

 

[polyphemus]

I think that Royal Mail is pricing some small businesses out of the market.

Geoff

 

[Helm]

Go with DPD people That way my temp job might become permanent and we can eat meat again

Steve

 

[Tecumsea]

Having moved around 300 million pounds in Royal Mail pension liabilities into the public purse the govt is trying to make the Royal Mail into a saleable commodity-hence the price hikes to improve profitability and increase its attractiveness.
This also means that whereas you could claim for non-delivery if the value was less than £46. This has been reduced to around half that figure which means only the smallest parcels will qualify forcing senders to risk taking a hit or use the signed for option.

 

[elgreco]

Yes, you're right there, Keith, and for International Signed For, we've been advised that new labels will be used to show the true value of the item. So if you claim a higher value than that declared, they will only compensate for the amount declared.

 

[Karlosfandango]

The squeeze continues.
Seems you can't do anything nowadays without getting stung for it, jacks me off. You'll be charged soon for farting!

 

[Gra30]

With small parcel at £3.00 for 1kg and 1-2 kg at £6.85 I will be splitting parcels where I can.
I will look at International options as they come up but in some cases DPD or parcels to go are a better option.
As they are courier services with tracking and faster delivery usually, door to door, depending on the order I can certainly see these being used more.
It will certainly hit manufacturers but hopefully any increases to the customer will be kept to a minimum, after all there is no business without them
Royal Mail have been going downhill for a long time and I begrudge giving them more money and equally having to pass on but as said hopefully it won't hit the modeller too hard if possible.

 

[elgreco]

With small parcel at £3.00 for 1kg and 1-2 kg at £6.85 I will be splitting parcels where I can.
I will look at International options as they come up but in some cases DPD or parcels to go are a better option.

Unfortunately Graham, then you're still stuck with a £6.00 bill if you split parcels! We too will try to offset some of this but regrettably, it is the customer who will bear the biggest charge though we are looking at alternatives. As you say, courier companies are now offering better options/pricing so if Royal Mail are thinking of making more money from the parcels, then they have to think twice as some couriers will now be actually cheaper. So RM will be losing from their most profitable sector!
Celine

 

[Gra30]

Hi Celine
Sorry, I wasn't suggesting any different from your excellent service, as you know I use you myself.

I was just saying that it works out a little cheaper if split.
I realise that it is out of our hands, I only wanted to emphasise that we try our best not to hit the customers with extra costs if we possibly can and as you say use other alternatives if we can.
My very best wishes, see you at Darlington , and at least customers don't have to pay postage there, a hint for them to stock up

 

[elgreco]

No need for apologies Graham, just saying that splitting up parcels may not be as cost-effective in that there's more chance then that one parcel is lost and now compensation has been brought down to just £20 instead of £46. It's so hard for all of us as retailers to get the price right especially as it's out of our hands. Matt and I are scouring all possible alternatives.

(We'll be at the Welling Show, but not Darlington)

 

[Nap]

Hi Guys ,

As others have said another blooming way to get even more of our hard earned money , I feel for the traders , as Gra said they try not to hit the customer but they have to cover their costs which will as Celine says have a knock on to us all ...we are all stuck between the devil and the PO!!!

Money grabbing gits !!!

Glad I love this hobby so much

Nap