Small fanfare for UK Royal Mail’s drop in B2B price

There was a luke-warm reaction to news that Royal Mail is to reduce its prices for business mailers. The move is part of the postal service’s plan to stave off the growing competition for its huge share of the B2B market.

From April this year the cost of a first-class stamp will rise from 28p to 30p. Business mailers will receive a 1p discount on the 30p price if their mail is franked or uses a PPI (Printed Postage Impression) and weighs less than 60g. Discounts range from 3p to 8p for heavier items.

“There are some reductions and small increases, which are likely to behave as a balancing act,” said David Robottom, director of postal affairs and industry development at the DMA.

“Royal Mail is making its prices relate more to its cost, which we support,” he added. “We welcome any reduction in price, as long as the service improves.”

However, other experts believe the discounts will make little difference to business mailers. Terry Gilbert, group managing director at print and fulfilment DM firm The Compact Group commented: “Royal Mail is putting up first class stamps to get as much money as it can out of the consumer, but the consumer only forms 30 per cent of business. So the 1p discount is neutral.”