'Can you buy stamps now, then sell them for 30% profit?' blog discussion

mspritch

Definitely worthwhile if you're an eBay seller, by buying stamps now (especially 2nd class stamps) and using them to make up payment on packages sent after the rise you can save up to 28%, effectively paying less after the price rise than you do now.

Here's a quick chart to show which stamps you need to make up a given amount after the rise, and how much you'll pay for those stamps if you buy them now:-

[FONT=Courier New][B]Use these stamps[/B]  [B]Total Value[/B]   [B]Amount Paid[/B]    [B]Saving[/B][B]
1st class[/B] [B]2nd[/B]                 [B]by buying early[/B]
          1          £0.50         £0.36       28.00%
1                    £0.60         £0.46       23.33%
          2          £1.00         £0.72       28.00%
1         1          £1.10         £0.82       25.45%
2                    £1.20         £0.92       23.33%
          3          £1.50         £1.08       28.00%
1         2          £1.60         £1.18       26.25%
2         1          £1.70         £1.28       24.71%
3                    £1.80         £1.38       23.33%
          4          £2.00         £1.44       28.00%
1         3          £2.10         £1.54       26.67%
2         2          £2.20         £1.64       25.45%
3         1          £2.30         £1.74       24.35%
[/FONT][FONT=Courier New][COLOR=#FF0000]4[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]                    £2.40         [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]£1.84       [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]23.33%[/COLOR][/FONT][FONT=Courier New]
          5          £2.50         £1.80       28.00%
1         4          £2.60         £1.90       26.92%
2         3          £2.70         £2.00       25.93%
3         2          £2.80         £2.10       25.00%[/FONT][FONT=Courier New][COLOR=#FF0000]
4[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         1[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]          £2.90[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         £2.20       [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]24.14%[/COLOR][/FONT][FONT=Courier New]
          6          £3.00         £2.16       28.00%
1         5          £3.10         £2.26       27.10%
2         4          £3.20         £2.36       26.25%
3         3          £3.30         £2.46       25.45%[/FONT][FONT=Courier New][COLOR=#FF0000]
4[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         2[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]          £3.40[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         £2.56       [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]24.71%[/COLOR][/FONT][FONT=Courier New]
          7          £3.50         £2.52       28.00%
1         6          £3.60         £2.62       27.22%
2         5          £3.70         £2.72       26.49%
3         4          £3.80         £2.82       25.79%[/FONT][FONT=Courier New][COLOR=#FF0000]
4[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         3[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]          £3.90         [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]£2.92[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]       25.13%[/COLOR][/FONT][FONT=Courier New]
          8          £4.00         £2.88       28.00%
1         7          £4.10         £2.98       27.32%
2         6          £4.20         £3.08       26.67%
3         5          £4.30         £3.18       26.05%
[/FONT][FONT=Courier New][COLOR=#FF0000]4         [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]4          [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]£4.40[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         £3.28[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]       25.45%[/COLOR][/FONT][FONT=Courier New]
          9          £4.50         £3.24       28.00%
1         8          £4.60         £3.34       27.39%
2         7          £4.70         £3.44       26.81%
3         6          £4.80         £3.54       26.25%
[/FONT][FONT=Courier New][COLOR=#FF0000]4         [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]5          [/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]£4.90[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]         £3.64[/COLOR][/FONT][FONT=Courier New][COLOR=#FF0000]       25.71%[/COLOR][/FONT][FONT=Courier New]
         10          £5.00         £3.60       28.00%[/FONT]

For each extra pound on top (e.g. to turn the £4.00-£4.90 list into a £5.00-£5.90 list) just add two 2nd class stamps (which will have cost you £0.72 for the pair).

As you can see by the ones marked in red, if a required value requires 4 1st class stamps you're better off going to the next value up as it's cheaper.

I-LOV-MONEY

I have bought enough stamps for a charity mailing to last a year. I did this last year (we can't afford to buy more than a year's supply at a time!), and saved on the current price. I was 5 stamps short at the end of the year!

Foolish_spendthrift

I ordered stamps from Royal Mail online two weeks ago but they still haven't been delivered. Looks like I'm going to have to get some from somewhere else PDQ. It's almost as if they don't want to supply at the lower price...

rob49

this sort of discussion brings home how low the lowest common denominator of the population has sunk.
mse has certainly provided a rallying point for the greediest, meanest spirited people in the country, no wonder its going downhill fast. and i'm not even slightly well off.

davidgh

When as part of my part-time self-employment I decided 2009 to profit from selling stamps friends said how 2p or 3p profit a stamp was not worthwhile. I felt it would be once volume was achieved.
I traded seriously from 2011 and current total sales is over 53,000.
My prices increase towards end of May when my discount will be 18% (and my margin will be higher)..
I have a stall at a weekly market in local Town Hall. Aggregate of last 3 weeks is over 6,000.
W H Smith, Superdrug were only selling at one third of a penny cheaper than me but they have had 12 minimum - I sell any quantity which pensioners like as for many their purchases have to be weekly.
I also supply several small businesses who do not have franking machines. Friends & relatives have become regular customers!!
Thanks for reading this long item. Just a few more things.
I am victim of own success - do not have the capital to buy beyond my current 12,000 or so in stock.
I have the labels for recorded, special delivery & air mail & from May will be discounting every Royal Mail weight. As I regularly post items staff were happy to supply labels as reduces time at counter.
Capital tied up in stamps (securely held in different places) would be earning very little as interest rates low.
Flow of customers to my stall helps sell other items I have.
I have had to get used to local name folk gave me- "the stampman"!!

davidgh

Other consequences of the selling listed above:
sheet headers going at more than twice the face value of 4/5 stamps on the header;
gutter pairs & traffic lights selling similarly (and fast);
many purchases of commemorative stamps as folk like the "pictures" to save usually sold at about 8.5% discount to face value (bought at 20% discount).

misterthrifty

rob49 wrote: »

this sort of discussion brings home how low the lowest common denominator of the population has sunk.
mse has certainly provided a rallying point for the greediest, meanest spirited people in the country, no wonder its going downhill fast. and i'm not even slightly well off.

I entirely agree, Martin Lewis has not done any favours to all of the people who have bought stamps hoping to make an easy profit, they will be lucky if they make anything at all and a lot will lose money. I totally agree with saving money and buying stamps for your own use but whipping up a storm of greed & selfishness does this site no credit.

jtcowie

Foolish_spendthrift wrote: »

I ordered stamps from Royal Mail online two weeks ago but they still haven't been delivered. Looks like I'm going to have to get some from somewhere else PDQ. It's almost as if they don't want to supply at the lower price...

I too ordered my stamps online, on 13 April, and was expecting to receive them in 5 working days as this is what it said on my confirmation email. However, as I hadn't received them by Tuesday this week I rang the helpline and was told that I would receive my order but it was "anyone's guess when". Apparently, Royal Mail usually get "a few online orders a day", but following the stamp price rise announcement they got 10,000 orders in one weekend alone!

However, my stamps have just been delivered. What amazes me is that they were sent First Class in a regular envelope when the contents were worth almost £100...so no protection if they were lost en route.

custardy

jtcowie wrote: »

I too ordered my stamps online, on 13 April, and was expecting to receive them in 5 working days as this is what it said on my confirmation email. However, as I hadn't received them by Tuesday this week I rang the helpline and was told that I would receive my order but it was "anyone's guess when". Apparently, Royal Mail usually get "a few online orders a day", but following the stamp price rise announcement they got 10,000 orders in one weekend alone!

However, my stamps have just been delivered. What amazes me is that they were sent First Class in a regular envelope when the contents were worth almost £100...so no protection if they were lost en route.

who would RM be claiming off, if they send them Special Delivery?

JamesK10

rob49 wrote: »

this sort of discussion brings home how low the lowest common denominator of the population has sunk.
mse has certainly provided a rallying point for the greediest, meanest spirited people in the country, no wonder its going downhill fast. and i'm not even slightly well off.

There's a big difference between greed and good timing, as RM gave people the extra month this year. I just walked to one of the two sub post offices in my area, and picked up not just the books of stamps I wanted but the one international stamp for an overseas birthday card, as users of PO Boxes are finding out (30% price increase) it isn't all about the 1st and 2nd stamps. I have to make sure that card is in the box this weekend or it'll get sent back to me under "not enough postage"

As for MSE, it's whipping up no bigger a storm than when it recommended Iceland to put your savings in, people are adults and have to be aware of the risks. I took the rate tarting advice on credit cards willingly but didn't blame this site when the disadvantages appeared (eg halved rewards). That's why I won't touch stoozing with a bargepole, it's led to some credit card providers banning overpayments.

@ davidgh - best of luck with your business but what's a "traffic light" stamp?