A Quick Guide to Reducing Business Postage Costs
With Royal Mail postage prices continuing to rise, many organisations are asking the same question: how can we reduce our mailing costs without affecting the service we provide to our customers?
The Business Mail service from Royal Mail is a discounted bulk mailing service for your invoices, appointments, customer service updates and administrative information. Using this service will mean a significant saving when sending your mail.

All businesses need to communicate with customers, and mail can get these important messages to them. Business Mail such as bills, invoices, appointments, customer service updates and administrative information create added value for businesses and their customers. Recent research done by marketreach.co.uk has shown that:
If you are sending Promotional or Advertising Mail, then please read the section:
Advertising Mail is a cheaper service, but is only available for qualifying items. If you are unsure if Business Mail or Advertising Mail is right for you then please contact us.
Business Mail is a discounted bulk mailing service designed to offer the cheapest postage for businesses using Royal Mail’s First Class and Second Class services to send statements, invoices, appointments, customer service updates and administrative information.
Due to the nature of this type of post; normally with correct recipient information and printed using an easy to use font, the Royal Mail’s sorting machines can read the information using OCR (this is why the pricing refers to Standard and Highly Machine-readable Unsorted Options).
This ability to read the senders information (from a 2D barcode printed on each item) and ability to read the address information, makes it very appealing to the Royal Mail, and discounts are given based on quantity, address accuracy, and sorting.
For this reason, handwritten envelopes cannot be sent using the Business Mail Service.
The Business Mail service is available for Letters and Large Letters that fall within the following categories:
Mail formats (Maximum letter sizes)
| Product | Dimensions | Business Mail | Advertising Mail |
| Letter: Up to 100g |
Max W165mmMax L240mmMax D5mm |
![]() |
![]() |
| Large Letter: Up to 750g |
Max W250mmMax L353mmMax D25mm |
![]() |
![]() |
| Large Letter: Machine-readable Up to 750g |
Max W245mmMax L345mmMax D10mm |
![]() |
![]() |
Businesses can benefit from discounts based on the quantity of mail you send, only needing to meet the minimum threshold, starting at just 250 items. There is no minimum volume for using the Business Mail service, but you will only receive a discount when you send 250 items in a single batch.
Business Mail prices offer significant savings against Franked mail and Stamp and Post Office prices. The table below shows prices effective from 7th April 2025.
| Franking price | Business Mail Advanced Price | Saving per item | Economy * Price | |
| First Class | 167p | 152.5p | 14.5p | N/A |
| Second Class | 84p | 75.4p | 8.6p | 78p |
* The Economy service from Royal Mail offers an excellent alternative when post is not time critical, contact us to find out more about Economy Pricing for mail.
The price per item when sending Business Mail is exclusive of VAT. For businesses that are not VAT registered then this can be restrictive, however there are alternative services that are likely to be better suited if your business or organisation is not VAT registered.
Please call us on 01322 643825 to find out about additional postage savings if your organisation is not VAT registered.
The Business Mail discounted service is also available through a franking machine. Advanced items that are highly machineable can also achieve substantial postage discounts.
If you want to use the Business Mail Advanced service using your franking machine, then you will need a BMA licence. This is easy to setup, but would need to be applied to your franking machine. To request more information about a Business Mail Advanced licence then please call us on 01322 643825 or contact us.
Using your franking machine to send Business Mail is easy to do but does require some planning and setup.
Our team at My Mailing Room is here to help you with this and offers full advice and support with your daily or ad hoc mailings. If you have any questions about the Business Mail service then please contact us 01322 643825.
Step 1: Order your trays
Trays are free of charge and can be ordered online via our online shop. You can also create an account so your details are saved making reordering these easier.
Step 2: Select the service using your franking machine
With your franking machine you can easily select the service using the touchscreen and frank your mail at the discounted rate; you can also display your company logo or marketing message.

Your franking machine counts the number of items you have franked and this data is passed to the Royal Mail at the end of the day so they can generate your VAT invoice.

Example of franked Business Mail Advanced letter
Put your mail into trays
Once your post has been franked it goes into the trays and is ready for Royal Mail’s collection.

Posting Advanced franked items
The items should be presented in trays for collection by Royal Mail or delivered to an agreed Royal Mail acceptance point.
Customers using the Business Mail Advanced process that uses a franking machine to print the Mailmark barcode onto their envelopes have their postage account credited with the additional volume related discounts once a month. Items priced as highly machineable and any additional volume related discounts will be determined by the volume of items read by Royal Mail’s equipment.
Because this is done automatically, there is no requirement to record posting details on an online business accounting sales order. You may also be billed for any inland letter, large letter or International items that do not have the correct postage.
The Royal Mail defines Business Mail as general correspondence and items of a personalised nature for transactional, contractual or relationship purposes. The Advertising Mail service offers the cheapest postage prices for sending Marketing Mail.
Royal Mail Advertising Mail provides flexibility and the largest postage savings (bigger savings than Business Mail) when you send direct mail (also called marketing mail) and marketing campaigns.
This service is used by many well-known brands’ and any advertising mail that arrives through your letter box is likely sent using this service. You can find out how these businesses take the hassle out of Direct Mail and learn more about Advertising Mail elsewhere on our website.
You should use Adverting Mail (not Business Mail) if…
There is no minimum volume requirement to use the Business Mail service. However, you will only receive volume-related discounts if you send at least 250 items in a single batch.
Yes! Any business can use Business Mail, whether you’re a small business or a large organisation. It’s ideal for sending invoices, statements, appointment reminders, customer updates, and administrative information.
However, to get the best discounts, your mail needs to be machine-readable (printed clearly, not handwritten) and meet Royal Mail’s guidelines for formatting and addressing.
To calculate your mailing spend you will need to decide what service you want to use (First Class or Second Class) then calculate that price per item multiplied by the number of items you are sending in a single batch.
If you send 250 items or more in one batch, you will qualify for volume-related discounts, which can further reduce the price per item.
If you need help calculating the costs for a specific mailing then please call our friendly team on 01322 643825.
Once your mailing is ready, the Royal Mail can collect from your premises or it can be dropped of at a Mail Centre or Delivery Office.
If you have a specific question about collecting a mailing then please visit our Postal Collection page.
It depends on the purpose and content of your mailshot, but there is a simple way to decide between Business Mail and Advertising Mail:
Use Advertising Mail if:
Advertising Mail offers the lowest postage rates for marketing campaigns and is perfect for direct mail, leaflets, catalogues, or special offers.
Use Business Mail if:
Business Mail is best for essential, non-promotional communication, and it still comes with great postage discounts.
The experts at My Mailing Room can help if you are still unsure which service is best for your bulk mailing, contact our friendly team on 01322 643825 for further information.
The cheapest way to send a letter depends on what type of mail you’re sending and how many items you’re sending, but the cheapest option is Advertising Mail.
Advertising Mail offers the lowest postage prices, even cheaper than Business Mail. It’s designed for marketing campaigns, promotions, and uniform messages (not personalised communication). You need to meet Royal Mail’s criteria to qualify, like minimum volumes (usually 1,000 letters) and strict design and content guidelines.
If you’re sending invoices, statements, or customer letters, Business Mail Advanced is the cheapest option for transactional mail. This requires a BMA license, but gives you volume-related discounts and starts at 250 items per batch for discounts.
If you are not sending batches of 250, items then Franking is cheaper than stamps and great for smaller volumes.