Franking Machine Guide Summary

This guide from Bobex outlines the benefits of a franking machine and what to consider when acquiring a franking machine for your business.

Depending on the amount and type of business post you send you could save as much as 30% on the cost of business post.  You will save at least 5p on First Class mail and up to 7p on Second Class. Don't forget to factor in time savings from no longer going to and queuing in the Post office.

A Franking Machine can be used for all types of business post from First Class and Second Class mail to parcels, including both special and recorded delivery mail and post going overseas.

As well as significant savings, using a Franking Machine provides a business with a professional image, by allowing it to add a logo or promotional message to all your post;

Additionally a franking machine will enable you to promote your business by using various promotional or advertising messages to personalise all your letters and parcels. 

Why Use A Franking Machine For Your Business Mail?

You could save up to 30% on the cost of your business post.

Franking for your business post is a quick and easy way to handle your mail.  Franking can save you time and money as well as projecting a professional image of your company to your customers. Franking is cost effective and easy to use. 

Franking machines are suitable for all types of business from large national companies, government bodies and universities as well as small and medium size businesses and sole traders.  With a franking machine there are no limits to the amount of business post you send.  The reductions in the cost of postage through using a franking machine are applied to each letter or parcel of mail when you send them, so your business receives any discounts regardless of how many items you post.

What You Should Consider Before Looking For Franking Machine Prices

It is important and cost effective to assess your particular businesses needs before you start talking to franking machine suppliers.  You should assess your mailing usage and requirements.  Will the amount of business post you're sending increase or decrease? Do you send first or second class mails; letters or parcels?

You should have an understanding of the mailing requirements of your business so that you can make an informed decision as to whether a franking machine would be of benefit to your business.  The questions to consider include;

• How many items of post do you send on average - daily / weekly?
• How much do you spend of postage each month? How much first class? How much second class?
• What types of letters and/or parcels do you send
• How much post will you be mailing in future?  Will this increase?

While there's no lower limit or upper restriction on the amount of post you can send using a franking machine, if you're spending less than £50 -£100 each month on post then it may be that a franking machine isn't the option for your business.

There are various types of franking machines available from simple low-volume machines to large highly automated machines that distinguish the weight and size of your letters and parcels. The most suitable franking machine for your business will depend on the volumes of mail you send and what type of mail.   

What Are The Advantages Of A Franking Machine?

A franking machine should be very effective for businesses that send out more than ten letters or parcels a day.  There can be substantial saving made by using franked mail and these can be as much as 30% saving on the costs of stamps.  A franking machine allows you to keep track of the costs of sending mail and your company mailing system becomes more steam lined.  Additionally mail that has been franked looks professional and is convenient - no more waiting at long queues at the Post Office.  

Advantages Of Buying Or Leasing A Franking Machine

Generally there are three ways you can set-up a franking machine in your business.  You can decide to buy, lease or hire.

When you lease a franking machine you save on the purchase price.  A lease price will generally include servicing etc.

When making the decision to buy or hire a franking machine there are a number of things that you should consider.  These will include price, instalment procedure, warranty conditions, training and service cover. 

Of course if you decide to lease your machine initially you can try before you buy.  Most of the major franking machine companies have leasing facilities available.

Leasing a franking machine can be a good option as you avoid paying the full amount for the machine upfront and any repairs, once the franking machine is out of warranty will be taken care of by the franking company.   Additionally the business can often upgrade the franking machine if the business grows and the volume of mail grows accordingly.

 However there are some potential disadvantages from leasing a franking machine in so far as the cost of leasing a franking machine can cost you more over the full contract period than it would have done to buy. Also when the lease comes to an end you may not own the franking machine. 

However it can be difficult to sell a second-hand franking machine as buyers will find it difficult to gauge the condition of the machine and transferring the Royal Mail license can prove tricky.

For companies that are completely new to franking, renting a machine can be a good option.  There's no capital expenditure if you rent a franking machine and it will provide an opportunity to test franking without a long agreement.  Again the disadvantage here is that the rent payments continue over time and can eventually cost more than buying a machine.

Depending on how much post you're sending it can be more effective for a business to buy a franking machine - provided your business can afford it.  However it is important when buying to make sure that you have cost of installation, staff training and warranty included in the sale price.  Make sure that you compare franking machines and franking machine suppliers before you decide which franking machine deal works best for your business.  The franking machine companies have regular offers and special deals so look around.   

When you buy a franking machine there's no contract.  If you're a new business buying the machine means you won't have to worry about your credit rating or credit searches.  Once purchased the franking machine sits on your balance sheet as an asset to the business and depreciated accordingly.  One disadvantage to consider when looking at buying a machine, apart from the initial cost, is that you may not receive any future upgrades that are available or may be required due to changes in the postal system. 

What Other Elements Should I Consider When Moving To Franking Mail?

One of the things businesses forget when looking at franking machine prices is that your franking machine will have additional running costs. It is important to ask suppliers about additional costs and to compare these between the franking machines on offer.

Franking machines use ink and the biggest cost of running a machine is buying replacement ink cartridges.  Additionally you will need to buy franking labels. You should ask the franking machine companies to tell you how many franks per cartridge there machine will give you and what are the costs of replacement cartridges. 

Apart from franking ink cartridges and franking labels operating costs for franking machines also includes charges for crediting your machine with postage.  There will be Royal Mail stamp price changes and your franking machine will need to be updated - depending on the supplier you choose these changes may incur a fee.   Some franking machine suppliers will include these costs in their monthly lease charge. Running costs vary depending which franking machines you choose so it's important to consider this at the start.

When you use a franking machine you can print your logo and/or promotional message - some companies will charge to set up and amend these designs so check with your supplier.

It's important to keep in mind that when you're negotiating with the franking machine supplier that it is often possible to improve the initial prices and terms. As with all contracts it is important to read your agreement before signing as franking machine leasing agreements can vary between suppliers.

 However these additional costs should still be offset by the savings on postage you'll receive.  You will save at least 5p on First Class mail and up to 7p on Second Class. Don't forget to factor in time savings from no longer going to and queuing in the Post office.

What Questions Should You Ask When Talking To Franking Machine Suppliers?

• How long does an ink cartridge last in the franking machine? How many times can I frank my post before the ink cartridge runs out - if I don't print my company logo or a promotional message?
• Are there any time restrictions on using the ink cartridge? Does it stop working after a certain amount of time following installation?
• How much does the replacement ink cartridge cost?
• What is the cost for adding postage to the franking machine? Is adding postage free and is there a limit on the number of free top-ups?
• What are the call costs for crediting the franking machine with postage? Often franking machines use telephone lines to add credit so it's important to establish what the call costs will be.
• What is the process and the related charges to implement Royal Mail price changes?
• Is there a "set-up" charge or "Admin-fee" to establish the agreement?
• What are the charges for franking machine labels?
• How much does it cost to set up a logo template? What charges are there for company promotional messages? Is there a charge for return address print set up?
• What's included in the maintenance and service agreement? What's not covered? Are all breakdowns and part covered?
• What training is provided by the supplier for use and basic maintenance?  Is training free?