How to manage rising postage costs
Small changes could make a real difference
Martin Chamberlin-Roe
Royal Mail is increasing business postal charges from October 2026, and for some bulk services the rise is significant.
The changes include average increases of around 25%, with Business Mail prices increasing by around 36% and Advertising Mail rising by approximately 12%.
The exact impact will depend on the service you use, but organisations regularly sending customer communications, membership updates, renewal letters, fundraising appeals or marketing campaigns are likely to feel it.
The good news? Higher postal costs don’t automatically have to mean printing and sending less.
A bit of forward planning, along with a closer look at how each mailing is produced and delivered, could help you manage the impact of the increase and make your budget work harder.
Why are postal costs rising?
Royal Mail’s operating costs are increasing; it continues to invest in its network and, at the same time, fewer letters are being sent.
Even with lower volumes, Royal Mail still needs to maintain a nationwide delivery service. With fewer items moving through that network, the cost of delivering each one goes up.
But mail still has an important role to play.
For many people, printed mail remains a trusted and accessible way to receive information. And with less landing on the doormat, a relevant, well-designed piece has a better chance of being noticed.
The challenge is making sure every mailing earns its place. It should have a clear purpose and be planned, produced and delivered in the most effective way.
Simple, practical ways to make savings
The size and weight of a mailing both affect how much it costs to send.
Depending on the project, folding an A4 document into a smaller envelope, reducing the number of inserts, printing double-sided or choosing a different paper weight could keep it within a lower pricing band.
None of those decisions sounds particularly dramatic. Together, though, they can make a noticeable difference.
They’re also much easier to consider before the artwork and specification have been finalised. The aim is to keep costs under control without compromising how the finished piece looks and feels.
Your data matters too.
Cleaning and validating address data can remove duplicates, reduce returned mail and avoid spending money on items that can’t be delivered, cutting unnecessary costs and waste.
The delivery service should reflect the timing of the project as well. Some communications genuinely need to arrive quickly. Others can use a longer, more economical delivery window without affecting the outcome.
It’s also important to choose the right postal category. Customer correspondence and promotional mail, including fundraising campaigns, are treated differently. Promotional mail may qualify for discounts, so it’s worth checking rather than assuming.
And if several smaller mailings are planned close together, could some of them be combined? Bringing related updates together may reduce duplication while still giving recipients everything they need.
This is a good opportunity to review your mailing activity alongside your wider marketing plans. We can help you take a step back and consider how mail can work most effectively for you.
Could a door drop do the job?
If your campaign is focused on raising awareness, promoting a local service or reaching potential new customers, a door drop could be a cost-effective option.
Leaflets, flyers and brochures can be delivered to households in selected areas without using names, addresses or a mailing database.
Door drops won’t suit personalised communications such as membership updates or renewal notices. But if the aim is to reach a wider audience within a particular area, they’re well worth considering.
Additional support for eligible organisations
Charities, schools and some other organisations that can’t reclaim all their VAT may be able to reduce costs through a postal agency agreement.
Under this type of arrangement, an approved postal provider purchases Royal Mail’s final delivery service on the organisation’s behalf. VAT isn’t charged on the Royal Mail delivery element, which can often represent a large part of the overall postage cost, so the saving can be significant.
Look beyond the postage
Postage may be the cost that’s changing, but it’s only one part of a mailing.
Creative, data, print, finishing, fulfilment and delivery all affect how efficiently a project runs. Looking at them together can uncover savings that might be missed if the focus is only on the cost of getting each item through the letterbox.
Print and digital can also work together. Some communications may be suited to email, with post available for people who need or prefer it. Printed pieces can also direct people to a website, online form or personalised content.
At Ruddocks, we can look at the whole project. That might mean reviewing the format and weight, improving your data, checking quantities and timescales, or finding the right mix of print and digital.
Every mailing is different. Sometimes, one small adjustment will be enough. In other cases, it may be worth taking a fresh look at how you communicate with your customers, members or supporters.
If you have a mailing planned or want to understand how higher postal costs could affect you, talk to us. We’ll help you review the options and find the most practical way forward.
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