‘Wake-up call’ over UK postal charges

Paul Jackson, chief executive of mail industry consultancy Triangle Management Services, has a stark message for small firms. He says the current disruption to the postal service is “a wake-up call”.
“Small businesses should stop moaning and recognise the world is changing,” he says. “They have a bargain at the moment and that bargain will not last for ever.”

Price comparisons supplied by the Royal Mail suggest that Britain’s flat-rate 28p first class postage for letters under 60g compares favourably with the price of similar services across Europe, the US and Japan. You would pay 37.8p minimum per letter in Germany, 35.3p in France, 48.1p in Italy and 36.6p in Japan.

Only Spain and the Netherlands offer a cheaper rate for the lightest letters. Even then their rates for letters weighing between 51 and 60g are 46p and 82.1p respectively, against the Royal Mail’s 28p. The US charges a minimum 24.2p, rising to 54.2p to send the heaviest category of letter. These first class comparisons are based on services delivering by the next working day, except in Spain where it is within three working days.

Only nine of the countries have a second class price option – UK, Portugal, Belgium, Denmark, France, Italy, Sweden, Greece and Finland. For the majority, second class post is supposed to be delivered within three working days; however, in Greece it is within five days and in France it is within four days.

Mr Jackson says that in countries where the postal services had been opened up to competition, like Sweden, prices for small businesses had increased. “In the long term when competition enters the marketplace the small user prices will go up. They should think about using mail less.”

Mr Jackson says small firms in rural locations should face up to the prospect of higher charges for their mail service.