Mailing is among the oldest forms of communication in the country but it is rapidly being replaced by newer and faster channels of communication. However this has not lead the lowering of mailing costs especially for businesses that still depend on mail to reach their clients .On the contrary the rates of mailing are going up and it does not seem like they will be touching the ground anytime soon. The electronic mail is the main threat to the mailing industry yet studies indicate that mailing is still a large component of business communication so much so that they account for almost 40% of all the mail correspondence in the country. Despite the efforts to deregulate the market and enhance competition, the rates are still too high. Thus postal solutions are required if businesses are to run cost-effectively.
The franking machines are one such option. These machines are estimated to be around 200,000 in the whole country. These machines are preferred as they allow businesses to frank their mail and send them through Royal Mail instead of sending their mail through pre-paid envelops and stamps. These machines are quite costly to buy due to a number of factors one of them being the current financial instability that the country is witnessing. Businesses cannot see the rational need for buying these machines given the current economic conditions. The high costs of the machines are also precipitated by the fact that there are still few suppliers of franking machines in the country, thus making the competition quite rigid.
Given the high rates and costs of mailing the use of postal scales and thus the use of postal chips is yet another postal solution. Design Initiative postal chips for postal scales are a much trusted for the development and distribution of these electronic weighing devices for postal rate solutions. The main suppliers of postal rate solution accessories in the country include Pitney Bowes and Neopost that account for a majority of the postal scales that add up to 90% of all the postal solution machines in the country. Other suppliers include the Franco Postalia that also that are working to deregulate the mailing industry. These suppliers are equally keen to lower and subsidize the cost of maintenance for contracts and re-crediting services, ink cartridges and postal rate chips. A good number of these suppliers have leasing services that are aimed at lowering the costs of buying new postal scales and franking machines.
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