Royal mail prices rising on 1st April 08.  Act quick to save even more money. e.g. Large letter rate rising from 48p to 52p. You can still buy these stamps cut price at 45p, so a big saving to be made...see below. 

Update: Old stocks now sold out so pay new price of 48.5p

Remember April 09 will see further price hikes as Royal Mail seek to bolster profits to attract a potential buy out. The price for a large letter stamp will likely be 56p or more so buying these stamps on or before 1st April will save you an estimated 7.5 pence per stamp.

UK VALID STAMPS

The following postage stamps are valid to use in the UK.

UK mint (unused) stamps in the following categories:

• Any stamp with the current monarch (that was dear Lizzie when I last looked) in denominations of  £1 or multiples. So all the way back to the coronation.
• Any stamp in decimal denominations.
• Any 1st or 2nd class stamps, regardless of original purchase price.
• Older stamps can often be purchased at discount from stamp sellers in job lots.

(If you sell stamps there is no VAT to pay as long as the stamps are unused and are sold at face value or less.)

The best stamps to buy are 1st and 2nd class stamps as they do not have the price of the stamp written on them and will still be valid when the postal inreases come into effect. If you use a lot of stamps there are substantial savings to be made by buying these at cut price before the next inevitable price rises come in to effect.

Best supplier of new cut price stamps are Costco 33.5p approx for 1st class (36p) standard letter (under 5mm thickness & 240 x 160 mm dimensions), and  48.5p approx for 1st class (52p) large letter.

Superdrug also has occasional promotions. Smaller resellers typically work on 5% profit margin and and any of these may decide to wave that margin in order to get feet through their door.

Here is an example of how the savings can mount up:

You have a special delivery next day parcel to send. It weighs under 100 grams and you need compensation level of up to £500 - current price at post office £4.60. Using 8 large letter stamps as above + a 36p + 8p stamps bought from the usual source, you save 8 x 3.5p i.e. 27.p. + 1 x 2.5p. Total 29.5 pence (nearly 6.5%) 

Had you purchased before the last price hike and stockpiled as I have been advising each year, your total saving would have been 8x7 pence + 1x 2.5 pence. Total,  a whacking 58.5 pence saving or 12.75 %. You can't get rates like that in any bank or savings account in a year never mind in one day.

THE CHANGES:

The current standard price for 1st class post (standard letter size) under 100 grams is 36p  (it was 28p until April 05). A  price rise of 2p was made in April 06 bringing it up to 32p. Royal Mail wanted to increase it to 39p but Postcomm would not allow that. However Royal Mail will keep up the pressure for further price rises. The postal market has been deregulated since January 06 when the 350 year monopoly of Royal Mail came to an end. It is now becoming clearer how this is affecting the average user and ebayer. They have now introduced two further inflation busting price rises, and wait for the next in April 09.

Franking accounts where you print your own stamps will give similar savings but you have to pay for the account which will lessen the potential savings considerably. The humble stamp (purchased cut price of course, is still the most economical method)

FOOTNOTE ON POSTAL ORDERS

Postal orders are a good way of receiving money as they can be treated like cash - no lengthy delays while cheques clear or bounce. They can be cashed at PO if not crossed, otherwise must be banked. For the buyer, sending a postal order should ensure they receive their goods promptly. They can also be cashed at post offices of 47 different British Commonwealth (past or present) countries around the world. What's more they can be purchased in some of these countries for example; Singapore, Malta, Trinidad and Tobago, and if you ever wanted to sell to Gambia but thought it was too dodgy, just say you will accept a sterling postal order. Our imperial legacy could have something going for it after all?

International money orders are a different matter and there will almost certainly be a charge to cash these. Typically about £10 in a UK bank. There are one or two cheaper alternatives for cashing these, e.g. auctionchex.

I hope you manage to add a few pennies to your wealth creation - or at least give less to 'Royal Snail'.

If you spot any mistakes please let me know. If you are reading this post April 09, the maths above will not be correct but the principal will be.

Some other guides:

FREE POSTAL INSURANCE - POSTCOMM REGULATIONS

PAYPAL REVERSALS - SELLER BEWARE.

WELDED BLISS GUIDE TO GOLD - QUESTIONS AND ANSWERS.

British gold and silver charms.

DIAMOND GUIDE, 4 C'S AND CONFLICT DIAMONDS

Thanks, weldedblissauctions