Stamps - cheaper option for small business?

Jessica_Wabbit

Hi,



I'm starting up a greeting card small business, currently a first class stamp costs 70p, second class is 61p, which chips into my costs quite a bit, I was just wondering if there was a cheaper, online print out way?


I remember years ago, I did this, downloaded software to pay online and print out the labels myself - can't remember what it was called, had a google and can't really find anything online.


Can anyone share if they use anything different or cheaper to send just a normal letter via Royal Mail?


TIA

soolin

Depending on your volume the RM might be able to offer a business account. I use a click and drop system with a Zebra printer that prints out labels , they look quite business like which might not be suitable for a greeting card though. I can't recall the cost of a stamp on there, but there is a saving.

There are lots of different RM OBAs (online business account) some VAT free for smaller businesses which can be quite a saving. They will expect a minimum yearly volume, for my account it is 1000 in each category I use.

Jessica_Wabbit

Hi Soolin,

Thanks for your reply! Its to send out the card to the customer for them to then write and send to the recipient - I am the printer.

I'll look into that, thank you. The cost of a stamp is almost as much as it costs me to print the card, let alone other costs. I hadn't quite realised how expensive stamps were these days! :rotfl:

torrence

Have you considered adding an extra P&P fee to however you charge. In most circumstances consumers accept seeing a P&P charge when small items are sent by mail.

As a small business you don't want to be so shy of billing for things that you end up not making enough profit.

Good luck with the new business.

Jessica_Wabbit

Thanks for your reply Torrence,



I'm wondering, for example does £4.50 with free shipping, looks better than £3.80 + 70p postage?


I'll have to do some research on that, opinions from you guys welcome in the meantime

MovingForwards

Franking machine and RM business account, depending on how many you send out a week / month, it may be a viable option.

BooJewels

Could you offer multi buy discounts - sell packs of 5 or one free with a certain quantity. Because your per order costs will be similar for several cards as for one - you could perhaps send 5 out for a large envelope stamp of £1.06 and perhaps using the same packing materials. I did this when I sold photo cards before my printer died - a single card just wasn't worth the effort - but 5 with a freebie was.

The Royal Mail product you remember was called Smart Stamp and was stopped a couple of years ago. If you accept payment through PayPal - can you still print address labels with postage from there?

soolin

BooJewels wrote: »

Could you offer multi buy discounts - sell packs of 5 or one free with a certain quantity. Because your per order costs will be similar for several cards as for one - you could perhaps send 5 out for a large envelope stamp of £1.06 and perhaps using the same packing materials. I did this when I sold photo cards before my printer died - a single card just wasn't worth the effort - but 5 with a freebie was.

The Royal Mail product you remember was called Smart Stamp and was stopped a couple of years ago. If you accept payment through PayPal - can you still print address labels with postage from there?

PayPal labels are still available but there is no discount on a standard stamp cost.

Jessica_Wabbit

Boojewels - yes Smartstamp! Such a shame its no more - was a very handy, easy and professional way to send items, can't understand why it is no more - or noone has taken it up?


Anyhoo, thank you for your smart suggestion, I shall definately look into bulk options.


Also thank you to everyone else who've replied, some great suggestions!

torrence

Jessica_Wabbit wrote: »

Thanks for your reply Torrence,



I'm wondering, for example does £4.50 with free shipping, looks better than £3.80 + 70p postage?


I'll have to do some research on that, opinions from you guys welcome in the meantime

Personally for small items if it were my business and I needed to bring in £4.50 I'd price my product at £3.80 + 70p P&P.

Although actually I'd price it at £3.99 + P&P. There is a wealth of evidence that price points below a round number really are perceived as cheaper, and with prices like £3.80 and £3.99 both are mentally accounted as "under £4". So you should really take that extra 19p profit margin.

If your own research leads you to stick with a single price with free shipping, then at least make it £4.99 not £4.50. Again both will be mentally accounted as "under £5" by consumers.

I doubt people buying your gift cards are comparing your price per card with competitors whose cards are exactly the same - it's the card itself that will determine if they want to buy - so take that extra profit margin under the next mental price point.