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Average postal value of your round

26 Jun 2020, 17:32

How much postage do you think has been paid to send everything you deliver on your round on an average day?

Specials.
Average: 2 a day.
Postal cost: £8 each.
Total: £16.

Customs Charge Cards.
Average: 2 a week.
Cost: £8 handling fee.
Total: £3.20 a day.

Tracked Parcels.
Average: 20 a day.
Average Cost: £4 per parcel.
Total: £80.

Stamped Letters/stamped small parcels:
Average: 50 a day.
Average Cost: £0.90.
Total: £45.

No idea on the costs of the below, but lots of these are delivered daily...
Chinese packets.
Franked Mail.
Magazines.
Door to Doors.

So I'd just take a wild guess and say the postage paid on all the items I deliver averages over £200 a day.

Just did this out of curiosity seeing as RM are losing money. I may be way out with all of this. Wondered if anyone has thought about this?

Average postal value of your round

26 Jun 2020, 17:38

Not sure of these figures - do you say you deliver only 50 letters per day ?
We charge £8 for a customs card ? :hmmmm

Average postal value of your round

26 Jun 2020, 17:47

Wow that's a paper round today 35 1pm specials 190 tracked for the whole walk, only took 3 loops of mail 9 left in the frame

Average postal value of your round

26 Jun 2020, 18:23

twoloops wrote:Wow that's a paper round today 35 1pm specials 190 tracked for the whole walk, only took 3 loops of mail 9 left in the frame


I'm not saying I don't believe you... but that sounds utterly unbelievable, 35 Specials, 190 tracked just for ONE round????

How many delivery points are there because based on those figures I'd guess you must have at least 3000!!!

Average postal value of your round

26 Jun 2020, 19:03

wacko74 wrote:
twoloops wrote:Wow that's a paper round today 35 1pm specials 190 tracked for the whole walk, only took 3 loops of mail 9 left in the frame


I'm not saying I don't believe you... but that sounds utterly unbelievable, 35 Specials, 190 tracked just for ONE round????

How many delivery points are there because based on those figures I'd guess you must have at least 3000!!!

Were a good few going to the same places?

Average postal value of your round

26 Jun 2020, 19:42

twoloops wrote:only took 3 loops

Find the admin, maybe they can change your username.

Average postal value of your round

26 Jun 2020, 20:07

I’ve often valued my round at about £1,000 per day.
8-10 specials
600 letters
100 tracked
100 untracked packets
20-30 large packets

My daily wage of £80 Approx 8 % of revenue

Leaves £920 for collections transport distribution and management

And we still losing money!

Something wrong somewhere

For example in care home front line wages are 80%

Average postal value of your round

26 Jun 2020, 20:23

norris9 wrote:How much postage do you think has been paid to send everything you deliver on your round on an average day?

Specials.
Average: 2 a day.
Postal cost: £8 each.
Total: £16.

Customs Charge Cards.
Average: 2 a week.
Cost: £8 handling fee.
Total: £3.20 a day.

Tracked Parcels.
Average: 20 a day.
Average Cost: £4 per parcel.
Total: £80.

Stamped Letters/stamped small parcels:
Average: 50 a day.
Average Cost: £0.90.
Total: £45.

No idea on the costs of the below, but lots of these are delivered daily...
Chinese packets.
Franked Mail.
Magazines.
Door to Doors.

So I'd just take a wild guess and say the postage paid on all the items I deliver averages over £200 a day.

Just did this out of curiosity seeing as RM are losing money. I may be way out with all of this. Wondered if anyone has thought about this?
Jesus , can I have your round ?

Average postal value of your round

26 Jun 2020, 20:46

I tried to do this a few years ago and included door to doors, which are very lucrative for RM. ( Have a look here: http://www.royalmail.com/sites/default/ ... h-2019.pdf )

I reckoned I was delivering just shy of five hundred thousand pounds worth of stuff a year. (520 drops on the round)

The door to doors alone on some weeks more than covered the cost of my wages.

Average postal value of your round

26 Jun 2020, 21:18

JKSmudge wrote:Not sure of these figures - do you say you deliver only 50 letters per day ?
We charge £8 for a customs card ? :hmmmm


no, not 50 letters a day, I wrote 50 stamped letters.

Most letters I deliver are franked and I do not know how much RM charge for these.

Magazines aren't stamped, junk mail isn't stamped, bank statements, bills aren't stamped.


What I have written out id probably undercutting things, but just at least trying to make the point I at least deliver 2.5x my daily wage. So whether that's profitable with van costs, manager costs, lorry driver costs, sick pay, etc - I do not know.

One thing i didn't take into consideration is Xmas which would probably be £500+ a day for 4 weeks. So are Royal Mail really losing so much money? is the loss of money simply down to buying in new tech?

And yes, there is an £8 handling fee that RM charge for each customs charge. Which on the face on it seems hefty and the profit made on these must be pretty decent.

Average postal value of your round

26 Jun 2020, 22:24

All those tracked parcels you quoted at £4 each, they won’t be anywhere near that. I bet they are doing deals with big customers for buttons to get their business. Same for Amazon specials etc.

Average postal value of your round

26 Jun 2020, 22:29

norris9 wrote:How much postage do you think has been paid to send everything you deliver on your round on an average day?

Specials.
Average: 2 a day.
Postal cost: £8 each.
Total: £16.

Customs Charge Cards.
Average: 2 a week.
Cost: £8 handling fee.
Total: £3.20 a day.

Tracked Parcels.
Average: 20 a day.
Average Cost: £4 per parcel.
Total: £80.

Stamped Letters/stamped small parcels:
Average: 50 a day.
Average Cost: £0.90.
Total: £45.

No idea on the costs of the below, but lots of these are delivered daily...
Chinese packets.
Franked Mail.
Magazines.
Door to Doors.

So I'd just take a wild guess and say the postage paid on all the items I deliver averages over £200 a day.

Just did this out of curiosity seeing as RM are losing money. I may be way out with all of this. Wondered if anyone has thought about this?


It's very simplistic though. Every one of those items you deliver has been on multiple vehicles and through multiple hands. The profit from those items also has to pay for 140k wages. 20k vehicles, 1000s of properties. Pension contributions. Sick pay. Vehicle workshops and staff. The list is massive.The diesel bill alone must be huge. I doubt that delivery makes a penny profit. That's why you'll never see owner drivers until we stop delivering letters in the distant future. Don't forget also that we probably don't make enough profit to barely cover our costs on most DSA.

norris9 wrote:And yes, there is an £8 handling fee that RM charge for each customs charge. Which on the face on it seems hefty and the profit made on these must be pretty


I'm under the impression tthat we have to maintain the HWDC on behalf of the taxman and we have to pay up front for these surcharges. We regularly return some as refused or not picked up so we lose the money on those. They also go through the special delivery channel as well so more expense. I don't think we make much on these.

Average postal value of your round

26 Jun 2020, 22:49

Try 30 specials a day that's what my office had in the peak in april not even joking all from amazon

Average postal value of your round

26 Jun 2020, 23:31

Munchboii wrote:Try 30 specials a day that's what my office had in the peak in april not even joking all from amazon

Rural office?

Average postal value of your round

27 Jun 2020, 05:53

plymouth3 wrote:I’ve often valued my round at about £1,000 per day.
8-10 specials
600 letters
100 tracked
100 untracked packets
20-30 large packets

My daily wage of £80 Approx 8 % of revenue

Leaves £920 for collections transport distribution and management

And we still losing money!

Something wrong somewhere

For example in care home front line wages are 80%



Exactly,

Especially when you consider that us posties doing the 'final mile' is supposed to be most labour intensive and expensive part of the entire RM pipeline.. just where is all the other revenue going??

Average postal value of your round

27 Jun 2020, 09:08

SpacePhoenix wrote:
Munchboii wrote:Try 30 specials a day that's what my office had in the peak in april not even joking all from amazon

Rural office?


Yes rural

Average postal value of your round

27 Jun 2020, 09:12

wacko74 wrote:
plymouth3 wrote:I’ve often valued my round at about £1,000 per day.
8-10 specials
600 letters
100 tracked
100 untracked packets
20-30 large packets

My daily wage of £80 Approx 8 % of revenue

Leaves £920 for collections transport distribution and management

And we still losing money!

Something wrong somewhere

For example in care home front line wages are 80%



Exactly,

Especially when you consider that us posties doing the 'final mile' is supposed to be most labour intensive and expensive part of the entire RM pipeline.. just where is all the other revenue going??


UKmail and whistle take alot of income from royal mail, doing DSA royal mail only get about 20p profit/letter compared to a 1st class stamped letter of 55p /letter profit. .

Factor this is, I think maybe in your calculation should reduce the 8income by letters by 60%. Then it gives a figure of £400 ish pound profit per round. This then goes to maintenance, collections and management!!

Average postal value of your round

27 Jun 2020, 10:13

Munchboii wrote:
SpacePhoenix wrote:
Munchboii wrote:Try 30 specials a day that's what my office had in the peak in april not even joking all from amazon

Rural office?


Yes rural

That's why then. Whenever we get a load of Tracked through from Amazon, most of the time it's for DOs that are mainly or near enough all rural

Average postal value of your round

27 Jun 2020, 11:12

Most of the people on this thread are way overestimating the profit margin on a letter.

Overall letter volume for 2018-19 was 10.2 billion.
Overall letter revenue for 2018-19 was £3.8 billion

That's an average letter revenue of around 38p per item.
That's revenue not profit.

Average postal value of your round

27 Jun 2020, 23:20

Look at some of the big heavy specials you get some of them are nearly £30 the specials I get in one day cover more than my wage

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