10-Feb-2011 18:15

I am not often shocked, but c'mon guys…

Mainly for client payments, certain incoming postal deliveries and specific departments for my business, my business has, for over 10 years, rented several P. O. Boxes directly from the Royal Mail.

I have just received the 2011 invoices from Royal Mail in the post (that's another gripe… our daily postal delivery arrives now at about 4.30pm!!) and am actually shocked to see that the annual rental has increased from last years £62.85p to £95 inclusive (they are vat exempt); a staggering increase of over 51%

I can understand increased charges due to rising overheads and costs but 51% - that is an absolute chutzpa…!

I hate to think what my clients would do or say if I increased my rates or tariffs by over 51% .

I called Royal Mail to query the cost and the chap answering the phone was almost embarrassingly apologetic..
He said that the Royal Mail staff could not understand or fathom the incredible increased charges on several Royal Mail products and services to businesses...

With ridiculous decisions like this, is it any wonder the Royal Mail business is suffering due to competition..

What a shocker!

Do any of you have any other tales of crazy & unwarranted increased prices to relate?

Would be interesting reading…

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Contributed by Trevor J Dyster on 12-Feb-2011 21:36
I had a moan about Royal Mail deliveries recently using Twitter and within 4 tweets I had a customer reference and a point of contact to talk to .

Even after challenging their explanation as to why we had no business post for three days which was due to our postie being called away on Union Business i got a further response with out delay and was so impressed with their customer service I wrote the guy an email thanking him and since then we have had no problem with our deliveries.

I ahve since tried this approach with a supplier who we are in dispute thinking that someone might get the message that i have had enough. On checking their Twitter profile for a company with 2300 branches worldwide i found that they followed 22 and were followed by 25 so I guess i will have to the olde worlde way of doing business and write to the Managing Director to see if i get a repsonse

Iam not holding my breadth as they havent responded so far after 6 months

Trevor Dyster
Contributed by SimplyFone Blogger on 12-Feb-2011 18:56
Hi Cornelis...

For me they are, as we've had the same PO Box address for about 10 years.

Be well.

Contributed by Cornelis de Maijer on 12-Feb-2011 18:56
are they the market monopolist?
Contributed by Benn Abdy-Collins on 12-Feb-2011 18:54
Hello Norman,

I remember when the recession started, there was a lot of discounting in supermarkets - one day there was a two-page spread in one of the dailies explaining how these "savage cuts" were achieved. They were not the generosity they were sold as (surprised?) they were smaller sized products e.g. 250g became 200g offered at a 15% discount. On a cynical note: I bet the sizes stayed the same when the price when back up...


...because life is all about connections, relationships and community
Contributed by Fergus McClelland on 11-Feb-2011 16:40
My business partner had the £750 quote experience. When she remonstrated they offered a £100 reduction. She came over to the National Farmers Union - where I am - and got a renewal for £240 - with all the same bells and whistles!

Contributed by Jeremy Dent on 11-Feb-2011 09:24
Direct Line car insurance: £235 to this year's quotation of £985.
All insurance companies win business at low rates and then immediately jack them up hoping lethargy will prevail.

Not £750 of lethargy!!
Contributed by Norman Feiner on 11-Feb-2011 08:57

Firstly I did not berate the chap at all - not my style mate.. and I realise not 'his' fault in any way.
In fact I have sympathy for the Royal Mail workers and especially the hardy Posties who do indeed work pretty hard for relatively low wages whilst management and directors probably earn far too much.

Secondly, as I said to Laurence, "I'm not complaining about the service or indeed even the actual price..
Just the incredible ''jump'' in price."

I agree too that the Post Office are fighting an unfair competition who cherry-pick the best routes, the most popular & profitable products and am thus able to be effective and more competitive.

However, as with many large organisations, Royal Mail and the Post Office before that, have been slow to modernise, cumbersome inn the extreme, lacked investment for years and should have been allowed to streamline instead of comfortably sitting back in the knowledge that they hold a monopoly position.

Contributed by Michael Heaney on 11-Feb-2011 08:47
Quoting BIG percentages is an old trick that we are wise to - so it does not wash any longer.
Instead make your case by putting it into pennies per day. and then what do you get...

26 pence per day .

You think that increasing the price for an annual service from a ludicrously small 17 pence per day by 9 pence per day is a big deal.

The cost of fielding your query - Having one trained chap waiting on the end of a phone for you to berate probably costs them all of the revenue that your business generates for the post office in a year and a lot more besides,

Sometimes I have to receive or send packages by DHL.
The Post Office cost would be perhaps 15 pounds.
the DHL cost is about 54 pounds.

The Post office is dying because it provides a ludicrously cheap universal service rather than the niche cherry picking of all its competitors.

We will miss the Post office when it is sold off .

And then the prices will rise massively - and the government will also fund the massive deficit in its pension fund by contributing back even more millions than it has generated in the sale.

And offer a massive subsidy to keep the un economic universal service

but thats the deeply clever economics of the current government
Heaven help us

Michael Heaney
Benchwhistler Associates Ltd
Planned People Maintenance - Enhancing the Performance of your most important asset
Know Better
Contributed by Norman Feiner on 11-Feb-2011 08:46
We get 100's of letters via our PO Box(es) and Royal Mail deliver 'em all...

I'm not complaining about the service or indeed even the actual price..

Just the incredible ''jump'' in price.

Contributed by Laurence Lowne on 11-Feb-2011 08:46
Have you tried Mail Boxes Etc?

I am sure there is one near you, and they have 24 hour access.

And compared prices?

Contributed by tom brown on 10-Feb-2011 19:41
Ecademy BS surely not a justifiable increase year on year?
Contributed by Alan Hine on 10-Feb-2011 18:28
Job boards are good at crazy price increases: £100 pcm to £230 being 1 recent example..
Contributed by Norman Feiner on 10-Feb-2011 18:27
Seems they enjoy a monopoly position with Mail & Post Office boxes as no company can simply 'change' a PO Box address and thus Royal Mail simply decide to increase with a random figure...

But 51% - that's taking the p***
Contributed by Zara Lockwood on 10-Feb-2011 18:23
It doesn't surprise me at all, the price of food has gone up too - it went up once before the VAT rise and once after - this is maybe so they can do what the utility companies did and pretend they are doing us all a favour when they knock off 5-10% in a couple months, post office are a loss leader aren't they ? so just like cutting buses for old and disabled and closing libraries because "everyone" has an ipad (apparently) post office have maybe decided to up the cost of po boxes instead of add a quid to the price of a stamp.

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