Smaller travel firms fear the effects of the rise in postal charges

A survey carried out for Pitney Bowes, the communications group, has found that 8 out of 10 small to medium-sized travel firms think that the rise in postal charges this week will have an effect on their businesses. And 1 in 10 think that it may put them out of business altogether.

On Monday, first class postal charges in the UK went up to 60 pence from 46 pence and the cost of a second class stamp rose to 50 pence from 36 pence. 30 percent of the SMEs said in the survey that they will find other ways to send their post or even send less post Half of them said that the impact on their business will be “big”.

Almost 7 out of 10 firms did not realize that the increases were going to be that large and were disappointed in the amount of information available in advance. Franked mail is still cheaper than standard rates. The cost of first class is up from 39 pence to 44pence and second class rose 3 pence to 31 pence.

Phil Hutchison, marketing director of Pitney Bowes, urged SMEs not to panic and suggested folding A4 documents thus reducing costs of the large first class mail which is 90 pence and the large second class which is 69 pence. Another possibility, he said was to send postcards or self-addressed envelopes to customers again reducing costs. He also said traditional print campaigns would now be critical for marketing.