Mailing Room benefits from higher postage costs

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A company which supplies and leases franking machines expects a record year of growth following Royal Mail's hike in the price of postage stamps. The Mailing Room, based in Bury, said it expects turnover to rise 35 per cent from £4.8m to £6.5m for the year to July 31. The business, founded by George Bevan and his wife Helen in 1999 as FP Mailing, provides businesses with franking machines approved by Royal Mail, TNT and UK Mail. It has recently rebranded as The Mailing Room. It serves around 10,000 customers, mainly in the north of England where it has an exclusive distribution deal with its supplier FP. It also supplies public sector organisations nationally. including local authorities and the NHS. Customers include Greater Manchester Police and the University of Manchester. Franking machines offer discounted postal services, which means sending first and second-class mail is cheaper than buying stamps. Mr Bevan said he expects a surge in demand for franking machines especially from SMEs due to the increase in stamp prices at the end of this month. Prices are set to rise from 46p to 60p for a first-class stamp and 36p to 50p for a second class-stamp from April 30. The cost of posting large letters will increase from 75p to 90p for first class and 58p to 69p for second class.

Mr Bevan said: “As franking machines offer a discounted rate, any organisation, whether it's a law firm or a business being operated by just one person, can save money if they are sending at least seven letters a day. “The Royal Mail has been deregulating its services for many years and we have been expecting the price increase for over two years. “As a result, for the last 18 months we have been increasing staff numbers, including field sales staff, to go out and speak to organisations about the changes in the Royal Mail and what it will mean for their business. “As a result, we have been getting more orders especially from SMEs and expect this to be our busiest financial year.” The Mailing Room's workforce has grown from 15 to 35 in the last 18 months. As well as offering franking machines, it advises businesses on their outgoing postal operations. Mr Bevan said: “The needs of all businesses are different. We assess if and where they can save money first.”