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SMEs think the changes to the postal system being introduced shortly will lead
to an increase in costs, according to a survey carried out by the Forum of
Private Business (FPB).
Currently, the cost of sending mail is based purely on the weight of the item
being sent.
When Pricing in Proportion (PIP) is introduced, the size, length and thickness
of the item will all be taken into account when considering the cost of postage.
The FPB, which represents around 25,000 SMEs, surveyed firms to discover what
they think of the changes. The FPB’s Research Analyst Andy Mowlah says the
results show that businesses believe the changes won’t reduce their costs.
“It’s rather ironic that this new system is designed in part to cut costs yet
60% of respondents thought it would actually increase them”, he explained
Twenty five per cent of respondents said they thought there would be no change
in their costs while only 14% said costs would decrease.
Over a quarter of respondents said the cost of their post would increase by 15%
or more.
Mr Mowlah said the administrative cost of the new system would also be a burden:
“60% of respondents thought the new system would mean extra time spent in
administration, while 50% didn’t realise they may have to purchase a new
franking machine,” he said.
Source:
RedAlert
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