A majority of small firms believe that Royal Mail’s new pricing scheme set for launch this month will increase their costs, new research has shown.
Royal Mail will introduce its Pricing in Proportion (PIP) scheme on 21 August, which alter the cost of sending post from being purely weight-based to taking account for the size, length and thickness of the item.
The scheme is aimed at reducing fees and making the system fairer, Royal Mail said, yet a poll carried out by the Forum of Private Business (FPB) has found that 60% of firms believe PIP will actually raise their costs.
A quarter of those surveyed said they expect their postal costs to rise by as much as 15% under the new system.
Meanwhile, the FPB’s research analyst, Andy Mowlah, said the administration costs, alone, will be a burden.
"Sixty percent of respondents thought the new system would mean extra time spent in administration, while 50% didn’t realise they may have to purchase a new franking machine,” Mowlah said.
Christine Hogg, director of CAMS Fire and Security in Stevenage, said her company is one that will definitely face fee hikes under PIP.
“Royal Mail says 85% of post won’t be affected, but we use an envelope that will now fall into the large letter category and I can only see it increasing costs,” she said.
“We must send around 300 of these envelopes per year, which at present costs us 66 or 82p each. Under the new system that could be 94p or more each, not to mention the time and effort now needed to carry out the administration.”
The poll found that just a quarter of respondents think there will be no change in their costs, while only 14% said costs would decrease.