Neopost Limited

Neopost Limited

April 12, 2012 04:09 ET

Seven Ways to Beat Royal Mail Postage Cost Increases

ROMFORD, UNITED KINGDOM--(Marketwire - April 12, 2012) - Neopost Limited announced today that communicating effectively, with your customers and prospects, is essential for any organisation. Communications assist in both customer retention and initiating new business acquisition. Best practice indicates that regular communications with strong simple messages are the most effective.

Cost Effective Communications

There is a cost in communicating effectively, this can be offset by the additional revenues gained. For example, for every £1 spent in direct marketing on average £17 in additional revenue can be generated.

Mail remains an important element of communications. It is the only way to reach some customer groups and a reliable way to send valuable documents. There are a number of ways to keep your mail costs low:

Franked Mail

You can save 19p on a 2nd class letter and 16p on a 1st class letter sent and up to £1.41 on a 2 kg packet by switching from stamps to franked mail.

Utilise 2nd Class Postage

By simply moving from 1st to 2nd class you can save 13p on every letter sent, saving an additional 29%.

Take Advantage of Pricing in Proportion

Size based pricing was introduced by Royal Mail in 2006. Make the most of this scheme by switching from C4 envelopes to C5 or DL envelopes and enjoy a saving of 22p per letter which is a 41% saving.

Postal Discount Programmes

A number of discounting programmes are available from postal service providers. For example, if you send 500 items in one batch you could access Royal Mail's Business Mail Service, saving 16% against standard postal tariffs. Royal Mail also offer volume related discounts, beginning at 1000 letters, these discounts save a further 1.5% to 7.5% on the cost of postage. By combining Business Mail and volume related discounts, businesses which send between 500 and 25,000 letters per mailing can save a further 16% to 23.5% off the cost of franked mail.

VAT Services

If you are regularly using VAT liable postal products, such as Special Delivery 9am or Business Mail, you could claim back the VAT by using a SMART technology franking machine - saving you an additional 20%. Neopost's range of IS SMART franking machines are VAT compliant.

Rationalise mailings

Save on postage and material costs by combining multiple mailings to a single addressee into one envelope.

Address & Database Quality

Royal Mail destroys on average 25 million letters, packets and parcels every year. Beyond postage costs, this undelivered mail means extra cost and damaged reputations for your business. Business critical mail and transactional mail such as legal documents, cheques, invoices and statements go undelivered, leading to delayed payments or reduced customer satisfaction impacting on costs, revenue and cashflow.

Marketing mail doesn't get delivered, meaning missed opportunities and reduced campaign ROI. Address correction software is available that can clean data effectively, against Royal Mail PAF address file, reducing the level of wastage in any mailings.

To find out more visit

About Neopost

Neopost is Europe's number one supplier of mailing solutions. It has a direct presence in 19 countries, with 5,700 employees and annual sales of €1 billion in 2011. Its products and services are sold in more than 90 countries, and the Group has become a key player in the markets for mailroom equipment and logistics solutions. Neopost supplies the most technologically advanced solutions for franking, folding/inserting and addressing as well as logistics management and traceability. Neopost also offers a full range of services, including consultancy, maintenance and financing solutions.

Neopost is listed in the A compartment of Euronext Paris.

Contact Information