Buyers: post charges will raise costs

6 September 2006
More news

07 September 2006 | Paul Snell

Almost 70 per cent of buyers are facing additional costs as a result of new postal charges introduced by the Royal Mail last month.

According to an SM poll of 100 buyers, 69 per cent of purchasers said the new charges meant added costs for their business.

Johan Denekamp, CEO of 4C's consulting division, told SM: "This is a scandal. Basic business communications are A4 folded three times. It used to cost 32p and now costs 44p." Nic Porter, head of procurement at promotional product firm 4imprint, said such a rise would cost his company £440,000 extra a year.

Royal Mail estimates that 80 per cent of mail will cost the same or less to send. But only 7 per cent of purchasers believed they would make savings.

But Ian Stewart, strategic procurement manager at Cambridgeshire County Council, said it forces businesses to examine systems. "This has made us review how we handle post," he said.

A spokesman for independent regulator Postwatch told SM Royal Mail made efforts to keep businesses informed. But some buyers think communication could have been more thorough.

**See Focus**

SMsep2006

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE