UK Royal Mail bids to secure photo firm price deal

Royal Mail is attempting to strike a deal with mail order photo developers over the introduction of size-based pricing. The move follows mounting pressure from a group of MPs amid fears of industry meltdown.

The postal operator is believed to have held a number of meetings with the leading companies in the sector, although a deal has yet to be secured to replace subsidies. Royal Mail director of commercial policy, management and pricing Lorna Clarkson says it will continue to search for a viable solution.

The mailing house sector is the latest to wade into the row. Mailcom operations director Les Helyer says: “Royal Mail may find mailing houses are reluctant to invest in the expensive machinery that enables them to cope with larger, more awkward formats. If postage prices become prohibitively expensive, volumes will drop and margins rise.”

Clarkson refutes the suggestion that creativity will be hit.