Postage
This section provides information on the various options open to direct mailers and the prices/discounts that are available.
Postage options
Post discounts
Pricing
Parcels
Postage options
Postal services in the UK are open to competition, although all companies that seek to deliver items at a rate under £1 each have to be registered and licenced through Postcomm. Most of the work is still undertaken by Royal Mail, but there is competition in areas such as Mailsort 2 (see below).
Within the services of Royal Mail there are three main types of postage available for letters and packets: first class, second class and Mailsort 3.
First class post also has a discount service (Mailsort 1) as does second class (Mailsort 2). Each of these apply when you post above the minimum number, and sort the mail according to Royal Mail criteria (which changes regularly!) Mailsort 3 – the slower third class service – is only available for bulk mail which is sorted.
Post discounts
Mailsort 3 is the generic name for a group of discounted services which Royal Mail offers and which have few competitors. This third class service can generate significant discounts on normal postage, but the service has a number of disadvantages – the most obvious being that there is a huge flexibility of time allowed for its delivery. Mailsort 3 packs can arrive two days after posting, or 10 days after posting. What’s worse, if you are regularly posting M3 packs to the same addresses, there is no guarantee that they will turn up in the right order. It is quite common to find that items posted on a Monday, Wednesday and Friday, all turning up together the following Monday. This effect, known as “bunching”, is perfectly legitimate within the terms of the M3 contract that Royal Mail operates.
Pricing
Mail is priced according to the speed of delivery (as in the options above), the weight and the dimensions.
Parcels
Items weighing over 2kg are open to much wider competition, and it is possible to achieve very low prices in terms of parcels. However not all services are the same.
Most parcel services have some sort of guarantee of delivery – but it is also worth enquiring what that guarantee means. For example you might post something that you want to arrive the next day, so you use a next day service which is guaranteed. But you might find that only about 70% of the mail arrives the next day, and the guarantee means that if your parcel is late, all you get back is the postage fee – providing you claim on time.
The more you pay for parcel delivery, the better the quality of service ought to be. Do not assume that a low price contract is going to give you an absolute certainty of delivery exactly when you want it.
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