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Royal Mail Pushes Price Of A Po Box Up 80Pc

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http://www.telegraph.co.uk/finance/newsbysector/supportservices/8425210/Royal-Mail-pushes-price-of-a-PO-Box-up-80pc.html

Invoices issued by the Royal Mail show the annual cost of renting a PO Box has increased to £170, up from £95 the previous year.

PO Boxes are used by tens of thousands of small businesses, as well as individuals keen to keep their residential address private, or those who travel away from home a lot. The jump represents a 170pc increase over two years, given boxes cost £62.85 in 2009.

Small business leaders criticised the sharp increases as customers attacked the "extortionate" rises despite receiving no extra "services". John Walker, chairman of the Federation of Small Businesses, said: "Almost a quarter of FSB members operate their business from home and for a small businesses such as these, a PO Box can be crucial to keep business and personal correspondence separate.

Although to be honest perhaps the old price wasn't economically accurate.

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http://www.bbc.co.uk/news/business-12937335

Record 5p rise in price of a first-class stamp

Higher UK postage prices have come into force - with a first-class stamp now costing 46p.

This is a record 5p rise in the cost of sending standard letters weighing up to 100g by first-class post.

Royal Mail has also increased the cost of a second-class stamp by 4p to 36p. A first-class, large letter stamp has risen by 9p to 75p, and by 7p to 58p for second-class mail.

A watchdog described the inflation-busting rise as "disappointing".

Spending

The average UK household spends around 60p a week on stamps, according to Royal Mail. These price rises would add 6p to this amount, it said.

However, in cash terms, the 5p rise is the highest recorded for first-class stamps.

Regulator Postcomm gave permission for the increase in November, and the plans were announced by Royal Mail a month later.

Postcomm said the changes would help Royal Mail to fund its modernisation programme and help safeguard the one-price-goes-anywhere universal service in the UK.

Moya Greene, of Royal Mail, said that the decision had not been taken lightly.

"We have thought carefully about these increases as we are conscious of the difficult economic circumstances our customers are facing," she said.

"No-one likes to pay more and we regret having had to take these tough decisions on pricing. After these increases, we will continue providing value for money as our prices will still be among the lowest in Europe.

"We are investing heavily to modernise our operations, which is all about providing our customers with the services they need in today's open, highly competitive postal marketplace.

"With the sharp declines in mail volume, our revenues are falling. That means if we do not generate more income, we will simply not be able to keep funding our six-days-a-week collection, sorting, transport and delivery operation to the UK's 28 million homes and businesses."

Competition

Philip Cullum, of watchdog Consumer Focus, said people would be extremely disappointed by the latest rise in prices above inflation.

"Royal Mail needs to modernise but customers are being asked to pick up the tab. In return, they will expect to see a far more efficient, effective and competitive service," he said.

Hosiery business UK Tights uses Royal Mail to send its orders to customers.

"This cost increase as well as the VAT increase will have a direct effect on our profitability. For us there is no real alternative to Royal Mail as we send low-cost small packets," said Jonathan Barber, who set up the business with his wife Dawn.

"Royal Mail has no competition in this market sector. We feel this needs to change."

So if they modernize the business will reduce overheads and be cheaper to run, do you think the cost of stamps will come down? I doubt it. We are being asked to pay for this modernization – something they should of done years ago – but we are unlikely to benefit from this investment.

If they were a private company and did not have a monopoly they would not get away with this.

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The problem is that the Royal Mail has lost its monopoly on the transport of information (and some monetary instruments, e.g. cheques and certificates), first to the fax machine and later to the Internet; with the result that it no longer has the economies of scale needed to provide a universal service for only a token payment. An additional problem is that this will further encourage people to look for alternatives. Despite what the women who sells pairs of tights online says, there are other postal companies who will deliver to densely populated urban areas, and if this price hiking trend continues we'll be left with a situation whereby Citylink or Home Delivery Network is delivering tights to London or Manchester addresses, with the Royal Mail being left with the problem of getting them to Cornwall and Orkney. The only things I now get and send through the post that I couldn't do online are Christmas cards and parcels. I'm almost certain that this price hike will fail to secure the Royal Mail any more income, because it will simply result in more people looking for alternatives, and finding them.

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3G Wireless Reading Devices like Kindle etc. will start hitting them with lost heavy book postage revenue, Kindles were some of the biggest sellers at xmas.

Although paper books are Vat free, Wireless Reading Devices are vatable @ 20%. This may give the book seller, particularly used book sellers a bit more time in the industry.

Wireless Reading Devices usually cut out the middle man as the sale is from publisher to big retailer like Amazon etc. Another case of the little guy squeezed out as i don't think they can be resold / reused

http://www.mobileread.com/forums/showthread.php?t=52882&page=2

Amazon's reply on my respective email to them: "According to the Terms of Trade, it is illegal to resell the eBooks. However, you may resell the Reader devices after deleting the eBooks on them."

This might not hold up in court, but it shows the potential problems...

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3G Wireless Reading Devices like Kindle etc. will start hitting them with lost heavy book postage revenue, Kindles were some of the biggest sellers at xmas.

Although paper books are Vat free, Wireless Reading Devices are vatable @ 20%. This may give the book seller, particularly used book sellers a bit more time in the industry.

Wireless Reading Devices usually cut out the middle man as the sale is from publisher to big retailer like Amazon etc. Another case of the little guy squeezed out as i don't think they can be resold / reused

http://www.mobilerea...?t=52882&page=2

Hmmm people I know who use kindles also enjoy dead tree editions, if anything they buy more dead tree books after they buy a kindle, as the kindle prompts them into buying more books overall, often getting the kindle version AND the the paper version of the same book

Edited by AteMoose

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Hmmm people I know who use kindles also enjoy dead tree editions, if anything they buy more dead tree books after they buy a kindle, as the kindle prompts them into buying more books overall, often getting the kindle version AND the the paper version of the same book

That's curious, why do they 'often getting the kindle version AND the the paper version of the same book' ? Is it widespread i wonder, in these skint times.

Sorry, perhaps I should have added 'imo' to the post. Speaking as an online seller of books & vid games, I've seen how the increasing download has hammered pc / console games & dvd sales, so was predicting the same for books. This is with likes of Valves' steam, lovefilm / youtube online films etc & piracy.

Of course a collectors market will remain, but paying £2.80 postage for a book is a big disadvantage

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I buy books for £1.50 down the local charity and used book shops. Until the e-readers can compete on a capital, energy and marginal cost I'm not purchasing any of them.

Exactly; books have a residual value (they can be sold on). Can you sell your once read e-books?

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....all these increases are trying to show royal mail is profitable before it is sold......when it is sold skies the limit?....all these years trying to keep stamp and other prices low, funny how things change when it suits them. ;)

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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