Franked mail can help you save on correspondence and parcel stamping fees, but you have to invest in a franking machine first.
Businesses can either buy, lease, or rent the equipment. Costs vary widely for all options.
Renting prices start just under £10/month and can go up to over £100, exclusive of VAT, depending on volume and machine model.
A new franking machine costs between £1,070 and £28,000 on average, but you can save with second-hand equipment. Used entry-level units can be found as cheap as £150, but old models may not comply with Royal Mail’s Mailmark requirements.
Leasing is a popular option for businesses that want to own their franking machine eventually but don’t want or can’t afford to buy it directly.
Most dealers and manufacturers offer 5-year lease terms with prices starting as low as £6 per week.
Whether you decide to rent or buy, you must also consider additional costs such as supplies and maintenance.
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How Much Does a Franking Machine Cost?
The table below shows the average renting and buying costs for the different types of franking machines*:
Franking Machine | Franking Volume | Rent Costs | Lease Costs | Buying Costs |
Low volume | Up to 50/day | From £10/m | From £6/w | From £1,000 |
Medium volume | Up to 300/day | From £20/m | From £45/w | From £2,500 |
High volume | 300+/day | From £50/m | From £80/w | From £5,500 |
*Disclaimer: Franking machine buying and renting prices in the table are industry averages correct as of September 2022, and they are intended to use as reference only. Franking machine manufacturers and dealers provide custom quotes to each business.
4 Franking Machine Price Factors
Here are the different factors which will influence the cost of your machine. The largest influence will be the volume type your business opts for.
1. Low Volume Franking Machines
Approximate costs:
- Purchase (new): From £1,070
- Purchase (used): From £144
- Rent: From £10/month
- Lease: From £6/week
Tailored for low-volume senders, these franking machines enable start-ups and small businesses to save on postal tariffs.
They are ideal for companies that deal with under 100 pieces of correspondence per day, as most models are manually-fed.
While they can only handle small amounts of daily mail, they are less expensive and cheaper to run than their mid- and high-volume counterparts.
Royal Mail authorised options include the popular Pitney Bowes DM60 and SandPro C, the Quadient IS-280c, and the FP PostBase Mini.
All these machines feature touch controls, logo printing features, and integrated scales for parcels.
2. Medium Volume Franking Machines
Approximate costs:
- Purchase (new): From £2,500
- Purchase (used): From £500
- Rent: From £20/month
- Lease: From £45/week
Often referred to as standard franking machines, the mid-volume models offer the most value for money.
They suit small businesses that plan to expand as well as mid- to mid-large companies dealing with up to 500 letters or parcels per day.
Franking machines in this range include entry options that are manually-fed, such as Pitney Bowes SendPro + or models with integrated feeder, like the DM400 from the same brand. The Quadient IX-5 also comes in hand- and auto-feed options.
They are more expensive than low volume machines, but integrate more features such as coloured touchscreens and real-time mail cost reports.
Instead of scales, these machines typically integrate weighing platforms for parcels up to 5 or 7 kilograms.
3. High Volume Franking Machines
Approximate costs:
- Purchase (new): From £5,500
- Purchase (used): From £1,500
- Rent: From £100/month
- Lease: From £80/week
High volume franking machines are ideal for large or growing businesses that send hundreds of letters or parcels per day.
They are the most expensive, with high-end models like the SendPro P3000 from Pitney Bowes costing just under £28,000. However, these franking machines pack a variety of features that automate, simplify, and optimise mailing, shipping, and tracking workflow.
Machines in this category help save both time and money, typically running over 300 letters per minute and processing mixed-sized parcels with correct postage as they go.
Speed and capabilities aside, they are also compatible with optional weighing scales designed for parcels up to 35 kilograms.
Aside from the SendPro P3000, other sought-after machines in this category include the PostBase Vision Ten, Quadient IX-7, and Quadient IN-700.
4. Maintenance & Ongoing Charges
Franking machines are expensive investments, and not only for the high costs associated with purchasing or renting a unit. Businesses also have to consider a variety of ongoing costs and fees.
Credits & Top-Up Fees
The machines may be business-owned, but franking is still controlled by Royal Mail and you have to pay set postage fees.
To do that, businesses must charge credits onto the franking machines. How much and how often you have to top up depends on the mail type and volume. However, paying for franking may not be all.
Providers typically charge a re-credit fee every time you top up the account. Pitney Bowes, for instance, currently charges £8 per refill if you pay in advance or £11 for payment by invoice.
It goes without saying that ongoing fees also include the actual franking costs charged by Royal Mail.
Credit Line Charges
Businesses that don’t want to pay top up fees can opt for a credit line from their provider. This line is usually pre-agreed and paid monthly via direct debit.
There are no fees associated with this payment method (except for eventual bank charges), but only if you don’t spend more than agreed.
Most providers charge an overlimit fee if you go over the arranged threshold.
Maintenance & Inspection
Royal Mail requires all businesses that use franking machines to have their equipment inspected at least once a year.
Inspection prices typically start at £90, even though independent inspectors may charge cheaper fees. Manufacturers may also include inspection fees in rental or leasing prices if you opt for a plan.
Maintenance for business-owned franking machines can cost anywhere between £90 and £1,700 annually, depending on the machine make and model. These costs could be included in the lease or rental rates, but you should check before signing the contract.
Account Fees
Providers generally allow businesses to create multiple accounts on their franking machines.
These accounts can help keep track and divide mail costs or even bundle up with other businesses and use different logos and business details for each piece of correspondence.
Depending on the machine and contract terms, franking machine companies may only include one or a limited number of accounts in the plan. A separate fee will then be charged for each additional account.
Support
Support often comes free when buying a product, but that’s not always the case for franking machines. Companies may charge the calls, especially after the warranty period ends.
Mail Tariffs Updates
To prepare your letters and parcels correctly, franking machines use tariff lists provided by Royal Mail.
Royal Mail updates the tariffs annually, and you must update the tariff list in your machine’s software annually, too.
Manufacturers may not charge a fee for the update if you’re renting or leasing the machine, but most apply fees when updating business-owned machines.
Franking Machine Supplies Prices
Before choosing a franking machine, consider the cost of supplies. Below, the different supplies a machine needs.
Ink
Inks are the most expensive franking machine supplies. Genuine toners manufactured by franking machine brands can vary greatly in price.
For instance, Quadient ink cartridges cost between £23 and £257, depending on colour and tank size. Pitney Bowes inks are much more expensive, with prices starting at £84.95.
Labels
Label costs are as variable as ink costs. Continuing with the examples above, a pack of 250 labels from Quadient costs £14.49, whereas the same pack size from Pitney Bowes costs £59.95 for standard labels and £69.95 for self-adhesive ones.
Envelopes & Sundries
Envelopes are a lot cheaper than inks and labels, but they still cost between £4 and £20, depending on pack size and paper quality.
Other supplies include envelope adhesive if you didn’t opt for a self-adhesive type or label tape.
Are Franking Machines Cheaper Than Stamps?
Franking is cheaper than stamps, and investing in a machine could be the best solution for your business.
The table below shows a comparison between the various standard UK tariffs from Royal Mail*:
Class | Mail Type | Weight | Stamped | Franked | Mailmarked |
I | Standard letter | 100g | £0.95 | £0.84 | £0.78 |
Large letter | 100g | £1.45 | £1.28 | £1.22 | |
250g | £2.05 | £1.80 | £1.74 | ||
500g | £2.65 | £2.30 | £2.24 | ||
750g | £3.30 | £3.19 | £3.13 | ||
Small parcel | 2kg | £4.45 | £3.95 | £3.95 | |
Medium parcel | 2kg | £6.95 | £5.95 | £5.95 | |
10kg | £7.95 | £6.95 | £6.95 | ||
20kg | £12.95 | £11.95 | £11.95 | ||
II | Standard letter | 100g | £0.68 | £0.60 | £0.51 |
Large letter | 100g | £1.05 | £1.02 | £0.93 | |
250g | £1.65 | £1.40 | £1.31 | ||
500g | £2.15 | £1.82 | £1.73 | ||
750g | £2.70 | £2.48 | £2.39 | ||
Small parcel | 2kg | £3.35 | £2.85 | £2.85 | |
Medium parcel | 2kg | £5.35 | £4.35 | £4.35 | |
10kg | £6.95 | £5.95 | £5.95 | ||
20kg | £10.45 | £9.45 | £9.45 |
*Tariffs in the table are sourced from Royal Mail and are correct as of September 2022.
As the table shows, mailmarking letters and envelopes is the cheapest way to send mail within the UK.
Sending 20 Class I standard letters would cost £19 if stamped. The same number of mailmarked letters would cost £15.60.
This is the basic tariff to which you must add up the costs of envelopes, ink, labels, and the rental or leasing costs of your machine. However, even when all the costs are added up, mailmarking the letters is still cheaper than stamping them.
Yet, you may end up spending slightly more if you’re franking rather than mailmarking the letters. If your machine can only frank not mailmark, you should consider investing in a newer machine or stamping the letters.
Should I Rent, Lease or Buy a Franking Machine?
Owning a franking machine – or leasing one for later purchase – might be tempting. Even though the equipment is expensive, the investment is worth it if you send a lot of mail. However, you can’t know when the machine will become outdated.
For instance, Royal Mail has recently decertified standard franking machines, since they will only accept franked mail from customers who use a mailmark franking machine from 1st January 2023. Thus, customers who recently bought a standard franking machine have made a poor investment.
Leasing is tempting, but much more expensive than renting. You don’t have to purchase the machine in the end, but might lose any advance and the amounts paid during the contract. Renting is cheaper and you can upgrade the equipment at any time.
This is why renting a franking machine is the best solution for most businesses.
Used vs. New Machine Pricing
A quick look at the used franking machine market shows that you can score great deals when buying second-hand.
However, you should be aware of several factors before investing.
As mentioned above, the machine might be cheap because it’s outdated. You can’t know for sure when the last inspection was made nor how the machine was maintained. Thus, you could end up spending more on inspections and repairs.
If you still want to buy a used machine, choose a refurbished model from a manufacturer or dealer.
Looking For a Deal?
Franking machines can help you save on mailing fees, especially if your business sends lots of mails and parcels.
Whether you want to get your first franking machine or upgrade an old model, fill in the form to get up to 3 franking machine quotes from Royal Mail authorised suppliers.
Sources:
- https://www.quadient.com/en-GB/smart-mail-shipping/intelligent-mailing/mailmark-franking-machines
- https://www.radwell.co.uk/en-GB/Buy/FRAMA/FRAMA/MATRIX-DIV-F2-L
- https://www.pitneybowes.com/uk/shipping-and-mailing/franking-machines.html
- https://www.pitneybowes.com/content/dam/pitneybowes/uk/en/shipping-and-mailing/pdf/22-sendtech-04095-uk-web-price-list-asset-flyer-web.pdf
- https://www.royalmail.com/business/shipping/franking
- https://www.royalmail.com/sites/royalmail.com/files/2022-03/royal-mail-uk-stamp-prices-wallchart-april-2022.pdf
- https://www.royalmail.com/sites/royalmail.com/files/2022-04/royal-mail-franking-wallchart-april-2022.pdf
- https://www.royalmail.com/sites/royalmail.com/files/2022-04/royal-mail-mailmark-franking-prices-wallchart-april-2022.pdf
- https://startups.co.uk/technology/franking-machine-prices