Suffering SMEs turn to alternate mail services
Small businesses have been hit hard by the postal strike and are now seeking out private alternatives to Royal Mail, a British Chambers of Commerce survey has revealed.
The snap poll, conducted over the weekend, found that 88pc reported the strikes had “a significant impact” on their business, with cash flow and loss of sales particular problems.
Of those affected, 55pc said they were now more likely to use private delivery companies.
The BCC said the figure reflected the anger felt by small businesses at the impact the postal strike.
The problem for small firms is that their options are limited by the fact that the Royal Mail’s biggest competitors, such as TNT, Business Post and DHL, are at the same time customers.
Only Royal Mail does the ‘final mile’ bit of deliveries meaning small firms, like the rest of the population, are in the words of one business owner, over a barrel.
Mr Frewin says the last 25 years has seen a consistent rise in the volume of mail. Over the last 18 months that figure has declined. “Is it a blip or a sign of long-term decline? Our concern is that what started with a one-day strike and now two-day strikes, will continue. The worry is that the postal industry will be brought to its knees.”
Talk is that TNT might be just the business to give Royal Mail a run for its money when it comes to ‘final mile’ delivery, but the discussion about another provider stepping in to compete isn’t new.
So with a lack of viable alternatives, where to go for a small business? One step down from the large carriers are courier firms but Matt Hardman from the Forum of Private Business says these organisations are vastly more expensive, which ultimately heaps on overheads and causes them to be less competitive.
He adds: “Some of our members have contacted us to complain about the level of service provided by some of the larger couriers, and although he FPB recognises that Royal Mail is beset by problems at the moment, we would urge the Communication Workers Union and their members to accept an agreement before it is too late for many smaller businesses.”
