Why is a franking so much cheaper?

[harry84]

Just started working in a new company where a franking machine is used. Just curious (as I often am) what it is that makes franking so much cheaper?

Thanks as always for your help and insight

[baldrick]

Franked business mail gets a discount, I suppose it's because businesses post the majority of mail - the economies of scale. And it saves on staff in post offices having to sell stamps and staff in mail centres having to cancel and segregate and face them as they should arrive already segregated and faced, ie separated into 1st and 2nd Class, according to size, and arranged all facing in the same direction ready to be put straight onto the sorting machines. So lower processing costs for Royal Mail.

[TrueBlueTerrier]

Also when you use franking machines you have paid in advance. One business won't make a difference but scale it up to the whole of the UK and RM will be making more money from franking than stamps, just on the interest.

[arnold cheshire]

franking machine rental for a small machine is 15 pound a month and when you top up you get a 7 pound charge on top

[harry84]

Thank you all as ever for your insight - very interesting !