We are fast approaching the end of the financial year, with a new one on the horizon. A transition from one financial year to the next is a time when many companies and businesses think about prices and budgets for the following 12 months ahead. It is consequently a time that many decide to raise prices aswell, as we all experience in most Aprils each year, whether that be rail fare or phone contract increases. With this in mind, we will take a closer look at what could be about to happen for the courier industry as a whole, with respect to price changes.
The blog post comes in perfect timing just as Royal Mail announce their increase in costs. For the first time ever, first class stamps will cost more than £1 (exact price £1.10,) a cost which is above what many would regard as an important psychological threshold of charge. Even second-class stamps will rise by 7p to 75p from April. Royal Mail have cited the continuous decline in letter sending over recent years, which was exasperated further by the pandemic, and hasn’t really recovered since. Royal Mail like many businesses need to make greater inroads to sustainability for the future, and the rise in costs will help them achieve this according to reports. That said, many argue that this is still a small price to pay given there is a delivery service 6 days a week in many places, and that flat first or second class fee can get a letter delivered to anywhere in the country.
Times have been tough in the last 12 months. Everyone knows the problems the cost of energy, food prices, and general inflation have caused. Some companies are in better situations than others to absorb some of these rises, but this can’t be done forever, even in those most sheltered organisations. It is inevitable that couriers will have to put up prices too to react to the continuing high prices that inflation and related factors are causing, whether this is for same day services or more general ones. Wage bills will also increase as the minimum wage is set to rise, and as employers try to give workers more support in these difficult times. These are all further examples of aspects which need to be paid for, and ultimately some of these costs will pass onto the customer.
The question becomes what will be the extent of the rises, how can these be kept as low as possible, and how will this affect the customer. Luckily for the customer, the courier and delivery industry is quite competitive and in reasonable demand. This will always mean that shopping around is possible because there is no general monopoly on services. In that, it thus means that customers will stand a good chance of being able to find better rates and prices that will suit their pockets, businesses or circumstances. Everyone will need to accept that prices look continue to rise, and the courier industry will be no exception. That doesn’t mean however that the customer still won’t be able to get a good deal or limit the extent of rises that they will have to pay.
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