On Thu, 10 May 2012 11:55:02 +0100, Roland Perry put finger to keyboard and
typed:
>In message <
apgs79x...@news.ducksburg.com>, at 11:20:02 on Thu, 10
>May 2012, Adam Funk <
a24...@ducksburg.com> remarked:
>>> The probability of people stockpiling stamps prior to a price increase was
>>> foreseen when the decision was made to switch to unvalued standard stamps.
>>> But using unvalued stamps means that the price can be changed without
>>> needing to change the design, which is not only a saving in itself but also
>>> means that neither the Post Office nor any other stamp retailer is now left
>>> with unsold and practically unsalable stock when the price does change.
>
>As opposed to, for example, a newsagent who ends up with practically
>unsaleable stock daily, weekly or monthly (depending on the publication
>date of the relevant newspaper/magazine).
Actually, no, they don't, at least not normally. Provided that the unsold
stock is a reasonably small percentage of the total (typically, around
15%-20%) then they don't pay for the ones that didn't sell.
This is a deliberate move by the publishers to encourage newsagents to have
enough stock to serve all possible customers (within a predictable margin
of error), and thus maximise circulation (which is more important to
publishers than sales, as advertising revenue depends on it). Otherwise,
retailers will tend to under-order so as to avoid wasting money on unsold
stock, thus reducing the maximum circulation.
(That only works for periodicals because, as a general rule, it's the
advertising revenue which makes money for the publisher - the cover price
is merely to offset the costs of printing and distribution, and also to
provide a profit margin for the retailer).
>>Another consideration is that when people stockpile stamps, Royal Mail
>>gets the smaller amount of money now but sits on it until it provides
>>the services later (or not at all, to the extent that people lose the
>>stamps).
>
>But with 30% price rises and 3% inflation, it's a no-brainer (for
>customers) this year.
Yes, this year is unusual.