SME’s Postage Savings

If you own or manage a small or medium enterprise there are many calls on your time and resources but as the tax year comes to an end soon it is well worth analysing how tasks which you take for granted are impacting on your overall profit and loss.

99% of businesses in the EU are SME’s and governments are keen to recognise their importance in the union.

In the UK, it’s these 5.4 million businesses comprised of 60% of the workforce, which could be spending too much on the everyday tasks like posting items simply because they use stamps.

Stamps have been in use since 1840 and there’s no need to change…or is there?

If you were asked if a franking machine was worth investing in it is probable that SME owners would hesitate to take advantage of the opportunity because the impression is that the franking machine cost would be prohibitive and the savings negligible.

Good news: The reverse is true for most businesses. You don’t need to be a multi-national to achieve significant cost savings which can outweigh the initial purchase cost or monthly rental fees.

Even an SME that sends just 5-10 letters per day should see cost savings.

Follow this rule:

Stamps cost more than a standard franking machine’s postal costs.

Standard franking machine postage costs more than smart technology franking machines post prices.

Smart technology is integral to all new Royal Mail franking machines and the postage cost implications are pleasing when Mailmark, their smart franking machine only tariff is taken advantage of.

Royal Mail has invested heavily in Mailmark post products, greater visibility and reporting tools which the older models of franking machines cannot enjoy.

A cost illustration:

10 2nd class small envelopes cost:

Stamps:  10 X 55p.

Standard franking: 10 X 40p

Mailmark franking: 10 X 37p

So, if you send 50 letters per week you can save £9.00 (£27.50 stamps/£18.50 Mailmark.)

Is your business performing so well that you can afford to lose £9 per week which equates to £468 per annum?

For a medium business sending 200 X small 2nd class envelopes the cost saving is substantial.

200 X 55p = £110

200 X 37p = £74

Cost saving per week: £36.

Cost saving per annum: £1872.

Again, are you happy about losing that amount? No, then please look to franking machines available from business supplies experts like IMS Franking Machines in Aldermaston.

Standard franking machines are still very much in use but these will be phased out over time as the potential of smart technology alternatives are recognised by clients.

To that end, if you choose to buy a second hand franking machine it may become obsolete sooner, that’s something to think about.

Second hand may eventually cost you more than a new smart machine, especially when Mailmark post products are factored in to calculations.

Royal mail is proactively directing SME’s towards franking because it’s more cost effective for the customer and for them so don’t cost your business any more money. Act now.