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Franking machine: Finding a way out of Royal Mail’s business prices jungle

Reading time: 3 mins

The leading postal services provider in the UK has developed a rich offering directly aimed at business users. Apart from franking discounts, Royal Mail business prices have been adapted to match the most frequent needs of companies of all sizes.

Royal Mail business prices

Royal Mail’s business prices for occasional users

  • Sending a parcel

Business users sending less than 20 mails or parcels per week may have to send urgent or valuable items. Depending on the degree of immediacy required, they may turn to Special Day Delivery Guaranteed service, or to Sameday delivery.

    • Special Delivery Guaranteed ensures the item is delivered the next working day, with money back guarantee and compensations.
      • For delivery by 1PM, the price will be £8.45, £9.45 and £11.45 for a 1kg parcel and £500, £1000 and £2500 compensation, respectively. If franking is used, prices drop to £8.00, £9.00 and £11.00.
      • For delivery by 9AM, prices will be £22.26, £24.46 and £27.96 for the same characteristics, respectively. Franking will cost £20.64, £22.84 and £26.34.
    • The pricing of the Sameday delivery works is based on three things: where the item has to be collected, where it has to be delivered, and what kind of vehicle will be needed (short/long/extra long wheel base or minivan).
      • For example, sending an item from the King’s Cross Area of London to the hereabouts of the Stock Exchange in Glasgow for same day delivery will cost no less than £496.99.
      • Users can easily get an estimate of the cost by visiting Royal Mail’s website.
  • Sending a letter

The same principles apply to letters, although the Sameday delivery service makes no distinction based on the item type.

    • For delivery by 1PM using Special Delivery Guaranteed, the Royal Mail’s business prices will be £6.40, £7.40 and £9.40 for a letter up to 100g and £500, £1000 and £2500 compensation, respectively. If franking is used, prices drop to £6.15, £7.15 and £9.15.
    • For delivery by 9AM, prices will be £18.18, £20.38 and £23.88 for the same characteristics, respectively. Franking will cost £16.92, £19.12 and £22.62.
    • There are no specific business rates for the postage of first class mail, other than that applied to franked mail, or mail sent using MailMark detailed in this guide.

Royal Mail’s prices for regular business users

  • Collection service

Business users sending over 20 items per week may consider contacting Royal Mail for special services.

With the collection service, the customer doesn’t need to bother going to the Post Office, as the mailman comes and collect the items at his doorstep.

The price will depend on the total annual value of postage incurred by the mail sent with Royal Mail.

    • A business spending less than £15000 a year will pay £787 for weekday collection at Royal Mail’s allocated time, or £1792 if that business wishes the collection to be made at their chosen time. The Saturday collection option will cost £246 in the first case, £479 in the latter.
    • Businesses spending over £15000 a year with Royal Mail will not need to pay for weekday collection, if the time of collection is mutually agreed by Royal Mail and that customer.
  • Marketing services

According to Royal Mail MarketReach research, 86% of people have connected with an organisation online in response to receiving an item of mail. Businesses will also be interested in Royal Mail’s marketing services – or the services of their partners, listed in their Mail Made Easy directory, providing direct mail, door drop mail and data services. Of course, prices will vary greatly depending on the ambition of the campaign.