Royal Mail Postage Costs Increase in 2023: What You Need to Know

Price increases come as no surprise to businesses and the public alike. With the cost-of-living crisis, we have all experienced sharp changes across the board. But with the news of the next increase in postage prices by Royal Mail, it is understandable that many are concerned. Regardless of your business size or the volume of your mailings, any price rises proportionately affect your business. For large-volume business and advertising mail, or smaller unsorted mailings this increase can be a worry. But here at Washington Direct Mail, we are always finding new solutions and services to mitigate unexpected hikes and aim to provide our customers with the best end-to-end services.

When is the Royal Mail postage cost increase?

We have seen two Royal Mail postage cost rises in 2023, the first being in April. Now, we have seen another rise on 2nd October 2023. The wholesale postage increase is particularly disappointing as we see a double-digit increase in the prices expected for business and advertising mail. This means that businesses that send high volumes of envelopes are being affected by these steep increases.

Why Royal Mail is increasing its postage costs?

Royal Mail has claimed to be raising its prices in response to the unsustainability of the current prices. Due to fewer letters being sent, an increasing number of addresses in the UK, and the Universal Service Obligation (USO) one-price-goes-everywhere basis for letter postage, Royal Mail needs to increase the prices to cover the costs. Economy mail seems to be increasing at a lower rate than 2nd class mail. This might be due to Royal Mail’s capacity to ensure mail is sorted before delivery, as they can maintain their USO obligation with these slower delivery rates. However, for many businesses looking to send their business or advertising mail, further planning and strategy changes will need to be in place to reach customers quickly enough.

The impact of the Royal Mail postage increases

As prices rise, businesses are going to find it more difficult to stay on strategy. This is especially so for businesses who send out high volumes of direct mail as new strategies are going to have to be put in place to help negate the increase in prices. Businesses that rely heavily on Royal Mail are going to have to find new methods of posting their business and advertising mail to get the cheapest possible price.

How can we help with your postage increase in 2023?

The rising prices are a concern for many, but we at Washington Direct Mail are dedicated to maintaining a high-quality service for our clients. We aim to provide cost-effective solutions that keep your targeted mail landing dates unaffected while managing the price increases. Our long history of mail service, and managing Mailmark services, means that we are experts in finding your business the best, cost-effective approach, even during Royal Mail price hikes. As the mailing industry goes through this uncertain time, we at Washington Direct Mail aim to lobby for our customers to ensure you’re getting the best outcome from your direct business and advertising mail. We offer various strategies to ensure our customers aren’t impacted by these unfair price increases.

Keeping you informed

As postage costs and other market factors change, keeping you in the loop is crucial. We aim to keep you informed on matters such as the above Royal Mail price hikes and how this will affect your business. Maintaining business as usual when prices increase can be difficult, and when your business relies on through-the-door mailing, keeping up with delivery service changes is one way to stay ahead of the pricing pitfalls.

Maintaining our money-saving standards

Here at Washington Direct Mail, we were early adopters of the Mailmark service. This continues to be the cheapest service available and is part of our promise for cost-effective postage methods. As such, we have been in the Mailmark service game for a long time. As Royal Mail aim to introduce retrospective charges for Mailmark, for reasons including poor data quality and underfilling trays, working with us can ensure you avoid these charges. Don’t slip into errors which can result in extra charges, let us help. And while the minimum volumes for sorted services are 4000 for letters and 1000 for large letters, our unsorted Mailmark services are more cost effective than standard account mail below these volumes. Our expertise in this area means that no matter the amount of mail you need to send, we’ve got the strategy in place for you.

Data and analysis

Another way we can help is through our end-to-end service offering. Through analysing your data, we can ensure your business mail is performing at its best. Our data processing and cleaning can ensure it is mail-ready, meaning you don’t have to worry about what is being sent. We’ve got you covered. While Royal Mail and Downstream Access (DSA) providers offer economy services on a three-to-five-day basis, with 2nd class being two-to-three days, we can ensure your mail and marketing is ready to be released to account for this time difference. If you’re looking to shift to economy services, you shouldn’t have to miss out on the right delivery times.
Our approach means your mail can still meet targeted landing dates even with the delayed delivery.

We sort the postage

We aren’t just reliant on Royal Mail. In fact, our Postage Coordinator is tuned in to the market trends and is ready to provide your business with the best, money-saving strategies for your mail. With mailers such as UK Mail, Whistl, The Delivery Group, and Citipost under our belt, we will find the best way of sending your mail with the right choices for your business in mind. And by utilising Downstream Access providers, we can offer better rates than Royal Mail. This is because the mail can be pre-sorted before reaching Royal Mail – meaning that by the time the mail reaches Royal Mail, it only needs delivering.

Read more about our postage processes here.

Get a quote today, call 0191 487 5148 or email