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Please contact us for more information.
A member of our expert team will get in touch with you shortly with the solution of your query.
© Copyright 2022. All right reserved.
From 1st January 2023, customers will no longer be allowed to use their Standard franking machines to send mail. All Royal Mail products are migrating to utilise barcode technology. Franking has moved to Mailmark, a form of a 2D barcode, which is the most efficient and accurate way of processing mail.
Barcoding Royal Mails products allow them to improve operational efficiencies. In 2014, Royal Mail introduced Mailmark franking, replacing the traditional crown die indicia with a machine-readable, state-of-the-art 2D barcode.
They will soon be removing the option to use Standard machines, and Mailmark machines will become the exclusive offering for franking.
How will you be impacted?
Non-Mailmark machines
Standard franking machines produce a meter impression that doesn’t contain a 2D barcode
matrix. An example of Standard meter impression is below –
Please get in touch with us to get more information to help you identify an appropriate solution.
Mailmark machine
Mailmark franking machines produce a meter impression which contains a 2D barcode matrix like the image below –
In this case, you do not need to upgrade your machine or take any action.
What will happen if I try and use my standard franking machine after 1st January 2023?
In the period leading up to 1st January 2023, you will no longer be able to add credit to your Standard franking machine – Royal Mail has yet to release the date for when customers will no longer be able to add credit to their Standard franking machine. After 1st January 2023, Royal Mail will only accept mail that has been produced by a Mailmark franking machine and any franked mail that doesn’t contain a Mailmark barcode will be returned to the sender.
Do not hesitate to get in touch with us to find out how we can help you move on to the most appropriate franking solution for your needs.
For more information on the changes to Meters, please visit royalmail.com/franking or please contact us.
Royal Will be removing the use of coloured adhesive labels used for Special Delivery Guaranteed* and Royal Mail Signed For* products for meters customers.
This change will be effective from midnight on 31st October 2022.
Customers will be required to use a new meter indicia or shipping label on their mail items for such products. These new indicia and labels will include either a Mailmark* barcode and an S10 1D barcode, or a 2D barcode and an S10 1D barcode.
Royal Mail is mandating the use of the new indicia and barcodes and comes as part of our modernisation programme.
The products in scope for this change include Special Guaranteed* and Royal Mail Signed For*
From 1st November 2022, you will be required to use one of the following solution options:
1. Meter Machine New Indicia
The latest meters indicia will be larger in width and include an S10 1D barcode, additional product name information and new alpha-numeric content within the visual service indicator boxes.
Illustrations below, not to scale. Also includes special Delivery Guaranteed*
2. Secure Print New Indicia
The new Indicia will be as per the Meter Machine New Indicia above, printed in black ink.
Illustrations below, not the scale. Also includes Royal Mail Signed For®
3. Shipping Label via Meters API (OLP)
This is available today for parcels, the labels offered will now include letter and large letter formats. This label will be made available with access to Royal Mail’s Online Postage (OLP) system. The system will produce a fully addressed shipping label for you to apply to your mail item.
Illustrations below, not the scale. Also includes Special Delivery Guaranteed®
Your meter supplier will provide further details on when the solutions will become available and the best options for your business based on the current Mailmark meter technology you are using.
More information about this change will follow shortly. Further details can be found within the following link royalmail.com/business/shipping/franking.
Postage meters are machines that allow businesses to simplify postage and reduce costs, they work by essentially bringing the post office into your business. You weigh your mail and print the correct postage directly onto the envelope. Using a postage meter means you no longer have to stockpile stamps or keep on queuing in the post office, a postage meter also gives you discounted postage rates so you can save time and money.
There are postage meters available suitable for all size businesses, many believe they are just useful for large businesses who send masses of mail each day. In fact, postage meters are ideal for very small businesses too, you can get low volume postage meters that are compact, easy to use and allow you to correctly and conveniently mark mail while paying the correct postage rates.
A low volume, entry-level postage meter is the perfect solution for those with a light mail volume – even one-person businesses or startups can see benefits from using a postage meter!
Benefits Of Using A Postage Meter
Saving Money – Using a postage meter means you are always paying the correct amount to mail items, and you will no longer be at risk of overpaying. According to research, the average business that switches to using a postage meter will save around 20% on their overall mailing cost.
Saving Time – A postage meter saves time as employees no longer have to spend time sticking stamps to outgoing mail or going to the post office to have items weighed and priced. When using a postage meter you will pre-pay the postage by phone, internet or using a prepaid card and then every item you mail will be at a discounted price.
Simplify The Mailing Process – Most meters can print postage for any kind of delivery, keeping sending any and all mail straightforward and easily achieved.
Where To Purchase Postage Meters
You cannot actually buy postage meters, however, you can rent or lease them.
You are not able to buy a postage meter because the printing of postage is strictly regulated by USPS in accordance with federal law (postage is considered to be currency).
There are 4 postage meter dealers who are authorised to manufacture or lease postage meters, these are:
Pitney Bowes
Neopost
FP
Frama
These suppliers offer a range of postage meters to suit the needs of all businesses, you are able to rent the postage meter that works best for your business and because you are renting the machine you can easily upgrade if it does become necessary.
The Best Postage Meters For Small Businesses
We have chosen and reviewed the very best low volume postage meters for small businesses.
Pitney Bowes Mailstation 2
The Mailstation 2 is a compact postage meter that fits comfortably on any desk, it has many great features including an easy to read display, automatic date advance and full report printing. The Mailstation 2 is also Energy Star compliant meaning it has lower operating costs and is better for the environment.
This postage meter provides very crisp, clear prints and a range of optional extras including weighing scales and accounting ensuring it is effective and beneficial to businesses. As this is a Pitney Bowes product it comes with a Pitney Bowes Intellilink system, allowing you to easily download and update information on your machine.
The Mailstation 2 can process up to 18 letters per minute and is designed to handle around 100 letters a month, making it perfect for use by small businesses. This postage meter could save your business up to 25% on postage thanks to the exclusive USPS discounts.
FP Postbase Mini
The Postbase Mini is an entry-level postage meter, it has the ability to process up to 17 letters per minute making it perfect for new businesses who send as many as a few hundred items a month. This postage meter includes a built-in weighing scale, a touch-screen display and PIN security making sure sending mail is always accurate, easy and secure. It also comes with RemoteOne software to enhance its functionality and has optional ReportOne software available which provides additional accounting and reporting features. The Postbase Mini is small and quiet making it a perfect addition to even the smallest offices.
Neopost IN-360
The Neopost IN-360 can process at a speed of 45 letters per minute with a recommended daily print rate of 200 items, it is perfect for growing small businesses as it is a highly capable, easy to use machine that operates very quietly making it suitable for any office environment. This user-friendly postage meter includes a weighing platform, has IN-360 Rate Wizard to assist with postal rate calculation, will alert you to low ink and is also PIN protected for security. You can also add personalised, promotional or advertising messages onto envelopes using the Neopost IN-360 to help strengthen your brand and draw positive attention to your company.
The method for franking an item, as recorded delivery is slightly different from other franking services due to the fact that the item will need to be checked by staff in the Post Office before it can be sent. You can still frank the item – you will need to weigh the item, calculate the postage (including the 95p recorded delivery charge) then frank the envelope or label. You will need to prepare the item slightly differently for posting – we have included this information at the end of the article. Once the item has been prepared you will need to take it to the Post Office to be checked. When it comes to posting the mail, the recorded delivery mail should be kept separately and handed to the driver (if your franked mail is being collected) or a member of staff to ensure that you get the delivery you are paying for.
What Is Recorded Delivery?
This is a service that is often used for important mail as the recipient needs to sign to say they have received the item, this offers peace of mind and proof of delivery for the sender. You will also be able to check the delivery details online at any time. When using a franking machine you should make sure you have selected the recorded delivery option before you’ve put in any other option to make sure it includes the extra fee.
How Much Does Franked Recorded Delivery Cost?
Below is a table showing some of the costs of sending franked recorded delivery mail.
First Class Signed For Delivery
Format | Weight | Franking | Mailmark Franking |
Letter | 100g | £1.63 | £1.61 |
Large Letter | 100g | £1.93 | £1.89 |
250g | £2.24 | £2.20 | |
Small Parcel | 1kg | £4.17 | £4.17 |
2kg | £6.32 | £6.32 | |
Medium Parcel | 1kg | £5.97 | £5.97 |
2kg | £8.67 | £8.67 |
Second Class Signed For Delivery
Format | Weight | Franking | Mailmark Franking |
Letter | 100g | £1.50 | £1.47 |
Large Letter | 100g | £1.77 | £1.74 |
250g | £2.04 | £1.99 | |
Small Parcel | 1kg | £3.67 | £3.67 |
2kg | £3.67 | £3.67 | |
Medium Parcel | 1kg | £5.57 | £5.57 |
2kg | £5.57 | £5.57 |
Benefits Of Sending Recorded Delivery Mail
When sending Recorded Delivery mail you will receive proof that your item has been delivered to the sender, you also have the added benefit of being able to check the status of your delivery online. As well as this the item you send is also covered against loss or damage of up to £50 or the value of the item.
Preparing An Item For Recorded Delivery
Once you have franked your item you will need to do a few more things before it is ready to be sent. You should have a ‘signed for’ delivery log book, you will need to write the address details into the logbook, then put a barcode label onto the front of your envelope or parcel and put the reference stickers into your logbook. Once this is done, write the total number of signed for items you are sending and then sign and date the log book. This book will need to be signed by the delivery driver or cashier at the Post Office.
Summary
Recorded Delivery is a great way of sending valuable or important mail, you have the advantage of being able to check online when your mail has been delivered and the recipient will need to sign for the mail too. If your business is concerned about the post getting to the sender or they want to be sure the sender has received it this is a great option, and one that you can do using your franking machine! You have peace of mind and up to £50 coverage – all for a very good postage price!
When you’re looking for a franking machine for your business the costs can build up quite quickly, luckily most franking machines are available to rent or lease, this saves your business from burning a hole in its pocket.
However, some businesses prefer to pay the large initial investment in order to have the franking machine as an asset rather than as something that does not belong to them. The options are there but it’s down to personal choice as to whether buying or leasing will be the best decision. There are advantages and disadvantages of each so it might be worth taking it all into consideration before making the leap!
Regardless of whether you lease or rent a franking machine, you will still receive all of the benefits that franking can bring, so you will be saving money and time on every piece of mail that is sent.
Purchasing Vs Renting A Franking Machine
Franking Machine Rental – A Good Deal?
To rent a franking machine you will most likely pay between £15 and £50 each month depending on the capabilities of the machine. A rental contract tends to last between 1-3 years meaning you can easily upgrade machines if necessary.
Advantages
Disadvantages
Renting a franking machine is perfect for businesses who want to get the benefits without having to actually buy it. You have access to the latest models and updates, the freedom to upgrade machines as your business (and mail output) grows and you will receive lots of additional help and support in terms of licensing and maintenance.
There are so many franking machine models available that you are bound to find the one that best suits your needs, you can sometimes do short-term rentals too.
A short-term rental would give you the chance to use the product and determine if it’s the right one for your business – this can be a brilliant idea for businesses who are looking to purchase a machine, or simply businesses who know they only require a franking machine for a short period of time.
Why Purchase A Franking Machine Outright
Let’s take a look at the pros and cons of purchasing a franking machine first.
The most immediate and obvious consideration is the initial investment – to buy a franking machine can cost anywhere from £1,000 to beyond £10,000. The full, upfront cost can be quite hard-hitting but if you have that kind of money available to invest in a franking machine then it could be a good choice if you consider a franking machine should last you around 10 years so the actual lifetime cost is significantly lower than when you are renting.
You also have full control over the purchasing of supplies meaning you can ‘shop around’ more and buy the ones that fit your budget – this can result in savings compared to renting as some rentals suggest you buy specific supplies (which can be very expensive).
If you buy the machine you’re in it for the long term gain, you may lose some money due to the initial cost but when you factor in the life span of a franking machine, your daily use and the saving made you will find that you are saving a lot of money.
Extra costs you should bear in mind are:
There is also a chance that your franking machine model becomes outdated, it may be brand spanking new now but in a few years, there may be an update that has new technology meaning old technology machines become discontinued.
The verdict is still out, to buy or to rent a machine? It will depend totally on your business needs.
If you require help deciding, our team are here to guide you through.
A franking machine is a great investment for any business; they offer a time and money-saving solution to sending mail but is buying a second-hand franking machine a good idea?
It may not be a good idea for a number of reasons, first of all, it is important to bear in mind that when you use one you need to have a franking license from Royal Mail and that the second-hand machine will need to be inspected and approved by Royal Mail before it can be used. Due to the licensing and registration process. they are not as simple as straightforward to buy and sell as other offices may be.
When you buy a second-hand franking machine you will probably need to have an approved engineer reconfigure the machine as it will most likely have been previously registered and configured in a different postal area.
You should also take into account the lifespan; the average lifespan for a regularly used franking machine is approximately 10 years. This isn’t a long time and the chances are the usage from the previous owner will have resulted in various parts needing to be repaired or upgraded.
There could even be damage to the machine, for example, the weighing scales may no longer work well and this can be very problematic for your business’ postage expenditure, the wrong weight means the wrong price and this could have a big impact on potential savings.
The manufacturers are no longer producing some of the older machines so you may find it extremely difficult to locate parts for it. If you buy a second-hand machine with these kinds of problems it may cost you more to fix these issues than it would have if you’d bought a new machine.
Lastly, another thing to consider is where the second-hand machine has come from, it could be that the machine was not returned to the company at the end of its lease and if this is the case the machine will have been blacklisted as “lost or stolen” by the Royal Mail.
Keeping in my all of these possibilities, it may actually be more beneficial and in the long run cost-effective, to buy a new machine rather than a second hand one.
Second Hand And Reconditioned Franking Machines
You may be able to pick up an ex-demonstration model for a cheap price if you give the suppliers a call and ask. By purchasing an ex-demonstration model you could save almost 50% and get all of the great benefits, however, these models are not easy to find but it’s definitely worth calling around to see if there are any available. Ex-demonstration models are usually in very good condition and the savings are amazing.
Renting Reconditioned Machines
You can also rent reconditioned machines, this is often a better idea than renting a second-hand machine as the reconditioned machine has usually had any parts that had experienced wear and tear replaced.
Renting is an excellent way to experience the benefits of using a franking machine without having to buy it outright and cover all the costs such as maintenance, which is often included in a rental agreement. When looking to rent or buy a reconditioned machine make sure you are using an approved supplier to ensure you will get the franking benefits with legitimate postal transactions.
Renting a reconditioned machine can cost anywhere from £23 up a month.
What You Need To Consider Before Buying A Used Machine
First of all, make sure you are buying from an accredited supplier!
Other considerations:
License transfers – you will need to have the license and registration changed so the machine is registered in your postal region under your name, without this license and registration you cannot use the machine.
Check the meter and serial numbers for use – many second-hand machines are actually blacklisted by Royal Mail or are actually stolen machines, to ensure you are not about to buy an item that is stolen you should check the meter and serial number with the manufacturer.
Look at the service log book – the service book will tell you all of the parts that have been replaced on the machine, you can get an idea of how the machine has been working from this and you can use it to ask the supplier more questions about the machine.
If there’s been a lot of service calls logged it may be a good idea to find another machine to buy, you can also ask if there are any unresolved issues with the machine. The logbook gives an idea of how well the machine has worked in the past, it is a very useful item to look at before you buy.
Royal Mail Approved Suppliers For Second Hand Franking Machines
If you would like to use a second hand or reconditioned machine then the best thing to do is to go with a company that has been approved by Royal Mail. This will eliminate a lot of the negativities and hassles you could encounter when buying a second-hand machine as Royal Mail has carefully examined the company that would’ve had to go through a detailed application process.
By having Royal Mail approval it shows the company is trusted to inspect, maintain or repair franking machines. There are 27 suppliers listed, this includes the four main manufacturers: Pitney Bowes, Frama, FP and Neopost, as well as 23 independent suppliers in the UK.
Second-Hand Machines In A Nutshell
A second hand or reconditioned machine can be an excellent investment providing you are very careful and considerate. There are many things to bear in mind and you should always exercise caution as buying the wrong second-hand machine could cost you a lot of money.
However, by buying a good second-hand machine your business could save a lot of money, so make sure you research well and buy from an approved company to avoid problems.
A SMART franking machine is a newer version-franking machine that has the ability to account for VAT. The machine will have all the VAT information on its system so all you need to do is frank the item as normal making sure you’ve put in the kind of postage you are sending, and the machine will do the rest for you.
The VAT will be automatically recorded so you can easily reclaim it back. This feature became necessary when there were changes in EU rules back in 2011 that resulted in some mail such as business mail and special delivery 9 am mail being subject to VAT and other types of mail such as standard mail and parcels not being subject to VAT.
Does a franking machine have to have SMART technology?
A SMART franking machine is essential if you are sending mail via VAT applied services.
Due to the VAT being quite a confusing and stressful aspect of franking, it is unsurprising that paying the wrong VAT could very easily happen. This is why the SMART franking machine exists, to help save us time, stop us from stressing and make sure we are paying the correct VAT.
As of 2012, those who do not use a SMART franking machine are not able to reclaim VAT.
What are the benefits of a SMART franking machine?
Using a SMART franking machine means the VAT is kept as simple as possible, the machine will automatically calculate the VAT figure and will send you and Royal Mail the information. This means you are correctly billed and you can easily reclaim the VAT from HMRC. A SMART franking machine allows you to closely monitor your spending. You also have access to discounts like Business Mail Advanced – something only accessible with a SMART franking machine, and this can save you more money.
A SMART franking machine will save you time and stress, it will produce a detailed report of expenditures and this makes it easier for you to manage, evaluate and improve your mailing costs.
If a franking machine does not have SMART technology that means you will not be gaining access to; further discounts, easy VAT calculations and reporting, detailed postage monitoring and the ability to reclaim the correct amount from HMRC.
Are postage prices the same for SMART and non-SMART franking machines?
Postage prices are the same for SMART franking machines and regular franking machines, you just have access to some extra discounts with the SMART machine. You will frank mail as usual but while you do the machine will be doing extra calculations and producing VAT reports, the prices stay the same it just helps to keep the VAT side of franking in order.
Are all franking machines SMART enabled?
If you are currently looking to buy or rent a franking machine, bear in mind that older machines will not be SMART enabled. The new franking machines from Pitney Bowes and Neopost are smart meter enabled, the new Frama and FP models are also fully VAT compatible.
If you are unsure whether or not a product is smart meter enabled, simply ask. As a general rule: the newest models are and old models are not. If you are renting a machine that is not SMART enabled then enquire about getting an upgrade with smart meter technology.
Which Services Are Liable To VAT?
These services are among those that are now liable to VAT:
SMART Meters & Blue Ink
It has recently been found that blue ink makes a franked mark more easily read by a machine, due to this development many SMART franking machines offer the use of blue ink. This will give a clearer, more enhanced and higher quality frank mark.
Summary
SMART franking machines are the newer and essential franking machines for businesses who are sending out mail that is liable for VAT. The new technology will make all VAT calculations correct and automatic meaning you won’t have to worry about it.
The calculations are done as you frank your mail and there is constant communication between the franking machine and Royal Mail to ensure the reports are sent over and the VAT can easily be reclaimed by you from HMRC. Fortunately, all new franking machines are SMART meter enabled so getting a franking machine with this technology is readily available on the current market. A SMART franking machine will save you the stress and headaches that the 2011 VAT rule change could have caused by keeping all VAT calculations automatic and accurate.
Who Should Use A Franking Machine?
Franking machines are popular with companies of all sizes, especially those who send larger volumes of mail than usual. There are many benefits to franking mail, a business will use franking in order to save money on postage and the franked mark also gives postage a more professional appearance. This key piece of equipment is used across varying types of businesses and is still heavily used across traditional industries such as Law, banking and Insurance, as these verticals require communications to be in hard form.
What Are The Benefits Of A Franking Machine?
Franking machines can provide a plethora of benefits for a business. Large savings can be made over time if the machine is used correctly since the exact weight of the packages is calculated rather than thresholds which Post Office normally uses. This means there will be no more guessing or overpaying ‘just in case’, instead you pay the exact amount every time. Ownership of a machine (or if you decide to rent a franking machine) allows you to access a facility whereby you can prepare mail to send at your leisure, not requiring a Post Office to be open. This is very convenient and you can also top up the postage credit on the franking machine anytime meaning you will never find yourself without it.
Franking your mail is also a great way to market your business as the franked stamp looks professional and can be tailored to include your company logo. Usually, you can add a promotional message on the envelope too and use your mail as an additional advertisement tool.
Another benefit of franking mail is that most machines have automatic accounting meaning that there is an ongoing record of your mail expenditure, this can also be separated into departmental accounts making keeping track of finances even easier.
How Does A Franking Machine Work?
Step 1 – Place your letter or parcel on the inbuilt scales of the machine.
Since you are attaining the exact weight of the package, and not using traditional thresholds which are found in Post Offices, you are paying for exactly what you have and in turn, saving money.
Step 2 – Select the size and service you require
Do you want to go, first class? Perhaps it only requires a second class? In any case, it’s your mail, you decide which options suit you. This typically beats the cost of a stamp.
Step 3 – Add a message
Do you want a message to appear on the parcel or the letter? Some franking machines allow you to customise what is printed, a great opportunity to add your company branding and raise awareness.
Step 4 – Calculate the exact postage
Franking Machines automatically calculates the exact postage cost, you may qualify for a bulk franking discount through Royal Mail.
Step 5 – Print the label
Slide envelop or label into the printing slot. This is then franked with the data, postage, company logo or message and finally, a unique 2D barcode. You have a 24×7 post office counter in your office.
Step 6 – Post your mail
Mail goes into the post box – ensure you use a metered mail envelope. You can also use your local post office (when open) or a business posting box.