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?
From 28 July 2025, Royal Mail will introduce a new delivery model for Second Class letters part of a major reform to modernise the Universal Postal Service and reduce operating costs.
This change has raised questions for many businesses that rely on post to reach their customers. The good news is that mail remains one of the most effective and trusted marketing channels, and with smart planning, it will continue to deliver results, literally!
Second Class letters, including advertising mail, catalogues, and customer notifications—will be delivered on a rotating weekday schedule, over a two-week cycle:
Other services remain unchanged:
Letter volumes have halved over the last decade, while parcel volumes have grown. Meanwhile, Royal Mail’s network has remained broadly the same, stretching costs across fewer letters.
Ofcom’s review concluded that the current model is no longer financially sustainable. These reforms are expected to:
Ofcom has also introduced updated delivery performance standards:
Tail of mail rule:
The “tail of mail” refers to items that miss their target delivery window. Ofcom’s rule ensures that 99% of all letters are still delivered within a slightly extended timeframe—even if they miss the main target—giving businesses confidence that their mail will not be excessively delayed.
These targets will be enforceable from 1 April 2026.
Despite the changes, direct mail remains a highly effective, targeted, and cost-efficient method to reach customers. Businesses that adapt to the new delivery model can continue using mail as a powerful marketing tool.
1. Adjust campaign timing Plan your posting schedule around the new delivery cycle. Mail may now take up to 5 working days, so build this into your lead times.
2. Be realistic about First Class First Class mail still provides six-day delivery, ideal for urgent items. However, its higher cost makes it less practical for bulk advertising. If First Class is essential, using a franking machine offers the lowest available postage rates.
3. Bulk mail and D+3 service A new D+3 product for business mailers is being introduced to align with the updated Second Class schedule.
4. Communicate across channels Combine direct mail with email or SMS to notify customers when mail will arrive. This improves engagement and customer experience.
5. Monitor your mailings Track performance and delays. Barcoded mail allows tracking, and working closely with your mailing provider ensures better coordination.
While the Second Class delivery schedule is changing, mail remains a valuable and cost-effective channel for customer communications and marketing. It cuts through digital noise, is retained and remembered by recipients, and integrates smoothly with other channels.
The Royal Mail have identified a requirement to provide customers with the delivery schedule for every address. In response to this, ‘Walk Visibility’ is being developed by Royal Mail to help businesses with the planning of their campaign and communication activity by having greater insight about the expected delivery days for their mail.
Whether you’re already using mail or thinking about it, this change is an opportunity to reassess and optimise your approach, not a reason to stop.
For specific advice or help adjusting your mailing strategy, get in touch with our friendly team by calling us on 01322 643 825 or contact us.