AN Post - I can't compete!

elvislives1

Looking for some advice. I started up a business selling online (registered last month for tax etc) so its all above board. Got myself an accountant also.

Anyway, the product I sell is popular all over Facebook, which is not a problem.

My main competition has a FB page and sells loads. BUT works for An Post so is able to send out the items for a FRACTION of the price I can. Where it would cost me €6.50, they post for around a euro. They work in the Portlaoise sorting office so stick whatever stamp they feel like on it (sometimes less)

I know this as my friend is friend's with their son and I bought an item off them to check. Exact same item. I went to the PO and it was €6.50 for me. Their stamp was around €1.20. They post 10-15 a week.

What is the best way to target this? Do you think An Post would give me that price if I sold the volume?

jimmii

Wow that is some staff discount. They do discounts but you would not be able to get anywhere near the sort of rate he is offering. If you could guarantee 20 a week they might do it for €4 a time or something around that. I wonder if An Post know he is using his staff rate for a side business as I would imagine that is not allowed.

SpaceTime

In any company that I am aware of, staff discounts are normally intended as a perk for staff for personal use only. They're not usually intended to be used for running a small business.

jimmii

I think you need to decide whether you are willing to risk getting him in trouble by reporting it. How cut throat are you going to be with this business!!

drunkmonkey

Your mixing up 2 different services, a small packet will cost about €1.20 to send that's what he's doing, what your doing is registering, swift posting or sending via parcel post, that's why it costs you €6.50.

Send it by ordinary post and it'll cost you €1.20

jimmii

drunkmonkey wrote: »

Your mixing up 2 different services, a small packet will cost about €1.20 to send that's what he's doing, what your doing is registering, swift posting or sending via parcel post, that's why it costs you €6.50.

Send it by ordinary post and it'll cost you €1.20

I guess it depends on what the product if its book sized then it does sound like that is the case if its something bigger than it seems like something is up for sure. Even a 100g packet to Ireland is €2.40 though.

SpaceTime

Nationally, An Post's ordinary packet mail is really good value and very reliable.

Also, if you can get your packaging size down to the minimum and fit into the smallest package category you get better rates. Go over it by a few grams and you're into the next category and the price can be huge.

And, yes they do have bulk business mailing discounts if you go in and have a chat with them. I'm not sure what the rates are but there are different rates if you have a huge volume of mail and can provided it to them pre-sorted into destinations.

http://www.anpost.ie/AnPost/MainContent/Business+Customers/Our+Business+Services/Bulk+Mail/Discount+For+Volume+Mailers.htm

Maybe the other guy's just very aware of the pricing structure rather than using a staff discount?

elvislives1

drunkmonkey wrote: »

Your mixing up 2 different services, a small packet will cost about €1.20 to send that's what he's doing, what your doing is registering, swift posting or sending via parcel post, that's why it costs you €6.50.

Send it by ordinary post and it'll cost you €1.20

No I am not mixing up anything. Its actually €7.50 for me (sorry my mistake).

Its a 1-2kg standard post parcel.

I actually bought an item from him to check. His has 2 stamps on it. 2 €.60 stamps which is €1.20.

I send mine without signature and so does he.

I am all for staff discounts and that is ok, but I just think its a bit unfair that they can send that much. He is obviously bringing the parcels to work, and sticking whatever stamp he wants on it.

I bought my item from him at 8pm at night (before he went to work) he said he will be heading to work later that night. I had it at my house 9.15 the next morning!

Hate hate hate this "who you know" lark He makes about €5 profit (same items from same wholesaler) so for me to compete with him and make €5 profit is impossible cause I am paying €6 more in postage

SpaceTime

If that's the case, you should lodge a formal complaint.

elvislives1

elvislives1 wrote: »

No I am not mixing up anything. Its actually €7.50 for me (sorry my mistake).

Its a 1-2kg standard post parcel.

I actually bought an item from him to check. His has 2 stamps on it. 2 €.60 stamps which is €1.20.

I send mine without signature and so does he.

I am all for staff discounts and that is ok, but I just think its a bit unfair that they can send that much. He is obviously bringing the parcels to work, and sticking whatever stamp he wants on it.

I bought my item from him at 8pm at night (before he went to work) he said he will be heading to work later that night. I had it at my house 9.15 the next morning!

Hate hate hate this "who you know" lark He makes about €5 profit (same items from same wholesaler) so for me to compete with him and make €5 profit is impossible cause I am paying €6 more in postage

This items in question weigh 1.5KG and are in a shoebox size package.

jimmii

Sounds like the only way you are going to make any money is by checking with An Post that what he is doing is ok.

elvislives1

jimmii wrote: »

Sounds like the only way you are going to make any money is by checking with An Post that what he is doing is ok.

See this is it. I think "Fair play" to him for starting up a business while having another job and good luck. but then im thinking "well its not a level playing field".

I will mail An Post and query this with them without giving the name. As I said this person works in the sorting office in Portlaoise. I don't want him to get in a whole load of trouble just because of me. Maybe if I just send them the FB page?

elvislives1

elvislives1 wrote: »

See this is it. I think "Fair play" to him for starting up a business while having another job and good luck. but then im thinking "well its not a level playing field".

I will mail An Post and query this with them without giving the name. As I said this person works in the sorting office in Portlaoise. I don't want him to get in a whole load of trouble just because of me. Maybe if I just send them the FB page? His sister works in the sorting office also.

I might just mail them with the link and say "how many do I have to send to be able to send for €1.20 per week"... see what they say.

Between this, and people selling fake items on Facebook I don't know why I started.

jimmii

elvislives1 wrote: »

I might just mail them with the link and say "how many do I have to send to be able to send for €1.20 per week"... see what they say.

I would be tempted to do it that way too! Makes you feel like you aren't emailing to try and get them to stop him and that you just want to know how to get that rate! I guess they might just say that he is subsidising the cost of postage.

ted1

I think you should have done your research a bit better before hiring an Accountant and registering for VAT.
if your doing less than €75k (the actual figure might be different) you don't need to register fot VAT.

as its a friend or a friend, had you heard stories about how good he is doing and was he your inspiration?

If he was RyanAir he'd be getting in trouble for receiving a state subsidy.

what value are the goods? is there anyway of reducing your other costs?

asides from a formal complaint theres not much you can do.

logically

Something doesn't quite add up here. If this person is getting some preferential rate, we are to assume that every post office and postman in the country knows it is being sent at a preferential rate. If the correct rate to send this package is 7.50, I find it hard to believe that at some point in the postal process a sorter or postman doesn't go "hang about - this package is a bit heavy for the amount of postage on the package." - don't they slap a postage underpaid sticker on stuff that has the incorrect postage?

So I suspect there is no preferential rate, and the person in the post office is using knowledge that the particular size package they are sending never gets caught and 1.20 works.

Nothing else makes sense.

jimmii

logically wrote: »

So I suspect there is no preferential rate, and the person in the post office is using knowledge that the particular size package they are sending never gets caught and 1.20 works.

€1.20 for a package weighing 1.5kg just doesn't seem likely its just too heavy. If there is a postal rate that cheap I really want to know about it!!

ted1

logically wrote: »

Something doesn't quite add up here. If this person is getting some preferential rate, we are to assume that every post office and postman in the country knows it is being sent at a preferential rate. If the correct rate to send this package is 7.50, I find it hard to believe that at some point in the postal process a sorter or postman doesn't go "hang about - this package is a bit heavy for the amount of postage on the package." - don't they slap a postage underpaid sticker on stuff that has the incorrect postage?

So I suspect there is no preferential rate, and the person in the post office is using knowledge that the particular size package they are sending never gets caught and 1.20 works.

Nothing else makes sense.

he works in the sorting office. the postman doesn't check the stamps, thats the sorting office Job. very easy for him to pu ti tthrough the system.

logically

ted1 wrote: »

he works in the sorting office. the postman doesn't check the stamps, thats the sorting office Job. very easy for him to pu ti tthrough the system.

Yes, but that is just one stage of the process. When it gets out into the system it goes through many hands - other sorters etc. (and postmen do notice these things on packages) - so it is very surprising that without anything to indicate a preferential rate these packages are getting through the system for €1.20

As I said, something just doesn't add up here.

Larbre34

Why wouldnt you report him? An Post is a semi-state commercial and not a private enterprise, there should be no such thing as staff discounts for a commodity like postage, I mean do Council workers get cheaper property tax or a pass card for cheaper street parking? No. If hes just lashing a cheaper postage label on it than it should have, then its fraud and/or theft

logically

jimmii wrote: »

€1.20 for a package weighing 1.5kg just doesn't seem likely its just too heavy. If there is a postal rate that cheap I really want to know about it!!

It does - but it's the only logical explanation. I can't believe An Post give a discount like that at all.

uck51js9zml2yt

elvislives1 wrote: »

I might just mail them with the link and say "how many do I have to send to be able to send for €1.20 per week"... see what they say.

Between this, and people selling fake items on Facebook I don't know why I started.

there are other private post companies which are cheaper.

blade1

elvislives1 wrote: »

Looking for some advice. I started up a business selling online (registered last month for tax etc) so its all above board. Got myself an accountant also.

Anyway, the product I sell is popular all over Facebook, which is not a problem.

My main competition has a FB page and sells loads. BUT works for An Post so is able to send out the items for a FRACTION of the price I can. Where it would cost me €6.50, they post for around a euro. They work in the Portlaoise sorting office so stick whatever stamp they feel like on it (sometimes less)

I know this as my friend is friend's with their son and I bought an item off them to check. Exact same item. I went to the PO and it was €6.50 for me. Their stamp was around €1.20. They post 10-15 a week.

What is the best way to target this? Do you think An Post would give me that price if I sold the volume?

I doubt An Post would give you that price.
I also doubt they are aware of the price an employee is using to send stuff!

elvislives1

Ok I have emailed An Post.

You would actually think I am sitting here thinking "ohh what can I make up today and put on boards cause I am bored" the way some posters are quizzing me.

I am just telling you what I know. I saw it posted so instead of doing anything about it, I went an bought an item to see for myself.

As I said, this guy brings them to work with him. How he gets away with it I don't know.

The items are all the same size and weigh about 1.5 kg and would be shoebox size. We both post without a signature and they won't fit through any letter box.

Questions about "was he my inspiration" and "bad advice given" are totally irrelevant to the question I asked. Its like your trying to say "ohh you ahven't a clue and your just copying someone else". Eh no I was doing it before this guy.

Anyway look I am going to leave it here and leave the thread because I came here for advice on the topic - not to be quizzed about my accountant or inspiration or to be made feel like I am lying.

Thanks for replies.

elvislives1

Crystal Sparse Gypsy wrote: »

there are other private post companies which are cheaper.

I have accounts with 2 couriers for my international orders. I also use them for my domestic also, but sometimes I use An Post when I get an order after the courier came (I like to post out the same day).

But thanks for that

jimmii

logically wrote: »

It does - but it's the only logical explanation. I can't believe An Post give a discount like that at all.

I agree something does seem to be wrong here hard to see where it is though.

BarryM3

Send a couple of test ones at at €1.20 yourself and see what happens?

logically

elvislives1 wrote: »

Ok I have emailed An Post.

You would actually think I am sitting here thinking "ohh what can I make up today and put on boards cause I am bored" the way some posters are quizzing me.

I am just telling you what I know. I saw it posted so instead of doing anything about it, I went an bought an item to see for myself.

As I said, this guy brings them to work with him. How he gets away with it I don't know.

The items are all the same size and weigh about 1.5 kg and would be shoebox size. We both post without a signature and they won't fit through any letter box.

Questions about "was he my inspiration" and "bad advice given" are totally irrelevant to the question I asked. Its like your trying to say "ohh you ahven't a clue and your just copying someone else". Eh no I was doing it before this guy.

Anyway look I am going to leave it here and leave the thread because I came here for advice on the topic - not to be quizzed about my accountant or inspiration or to be made feel like I am lying.

Thanks for replies.

Nobody has said you are lying. What I see is generally puzzlement and interest in how this person is getting something through the postal system this way. If he or she is knowingly sending out stuff with wrong postage that is theft. Theft that is coming out of the taxpayer's pocket.

jimmii

Crystal Sparse Gypsy wrote: »

there are other private post companies which are cheaper.

Cheaper than €1.20 for a 1.5kg package?

jimmii

elvislives1 wrote: »

Anyway look I am going to leave it here and leave the thread because I came here for advice on the topic - not to be quizzed about my accountant or inspiration or to be made feel like I am lying.

Thanks for replies.

I don't anyone means to be accusing you of making things up I think people are just questioning the €1.20 for a 1.5kg package as it means that something is surely wrong with whatever he is doing or there is something wrong with the way you are describing it. Also I think a lot of us hope he is doing nothing wrong and that you have stumbled upon a way for us to send packages for €1.20 and that you'll get a reply from An Post explaining how to do it!!!

carltonleon

There are no discounts for Staff postage within An Post.