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'Why stamps that say '1st' stay valid in perpetuity (so hoard 'em)' blog discussion
Former_MSE_Helen
Former MSE 2.4K Posts
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
Please click 'post reply' to discuss below.
Read Martin's "Why stamps that say '1st' stay valid in perpetuity (so hoard 'em)" Blog.
Please click 'post reply' to discuss below.
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Firstly, the costs:
Currently:
1st: 39p (franking)/46p (stamp)
2nd: 28p (franking)/36p (stamp)
Future:
1st: 44p (franking +13%)/60p (stamp +30%)
2nd: 31p (franking +11%)/50p (stamp +39%)
As you can see the franking cost rises much less than stamps, but franking remains cheaper than the CURRENT stamp prices.
So there's no incentive for businesses to buy stamps at current rates.
That's not, however, to say that prices won't rise in the future by above inflation, and the 44p franking rate will presumably be 50p next year.
Anyway, to consider yield we have to consider the present and future value of money - but also the future cost of stamps. We know that stamps will rise in price in the future, and probably in line with inflation. So in fact, after the price rise, a given £1 today, uprated for inflation/savings yield, should buy the same amount of postal services as it does now.
So essentially there's no reason not to buy thousands of them, because they will rise in value in the future.
As an ebay venture, it makes sense. Buy SECOND-class stamps today for best yield, £36 for 100, future price £50, £5.40-£6.90 for fees, and you can make 20%+ profit.
Also you can use them in the future as '50p stamps', as part-payment for other services.
In particular, while ALL postal services are increasing in cost, the 39% increase in the value of an undenominated second class stamp is the highest rise. So basically by buying second class stamps today for 36p and using them in the future for part-payment of more expensive postage services at 50p value each, you get an instant discount of up to 28% (1/1.39) on ALL postal services, which means they end up costing less than they do now, despite the price rise in the service, because the stamps are revalued. So for instance just stick 10 second class + 30p on a 2kg parcel from 30 April (would be 12 + 9p today).
The full range of undenominated stamps:
1st 46p to 60p + 30%
2nd 36p to 50p +39%
1st large 75p to 90p +20%
2nd large 58p to 69p +19%
postcard 76p to 87p +14%
europe £1 to £1.28 +28%
worldwide £1.65 to £1.90 +15%
Another thing to note is that the compensation payable by Royal Mail in the event of loss is going up to £60 (100 first class stamps). Quite handy for people posting items of some value (note the high cost of extra compensation on parcels).
Though back in the day when they were orange and changed colour to a darker orange, it transpired that after while the older 1st were treated as 2nd class.
Any one know the situation with stamps bought on line with royal mail - are they at the franking price or a new price?
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn
It's just a good way of saving money, the same way you would when you buy anything else...
I ordered 2 books of second class stamps with my Tesco delivery, they were out of stock so bless Tesco they subbed with first class ones - made my day that did
:cool::cool:
I have never tried home delivery of groceries, as I live near a supermarket.
Do Tesco charge for deliveries ?
If I bought a handful of groceries and a bucket full of stamps, maybe bringing the value of goods over a certain amount, would their delivery charge be zero ?
What about other supermarkets for that matter ?
As Tesco are doing a £5 off next week's shopping when you spend £40, I use that toward's next week's delivery.
Makes life much easier for me.
Does this mean if we hoard stamps today, they will no longer be valid if the Queen abdicates or passes on?
:eek::eek::eek::eek:
We need to know - and if that's true, maybe a message on MSE for those who are currently stockpiling stamps!!
It'll be like the old Soviet Union, they'll keep the old dear stuffed for a few more years, until they find a suitable replacement.