Pricing in proportion research

Postwatch, the watchdog for postal services, today releases research on Pricing in Proportion (PiP), Royal Mail’s new pricing structure.

The key findings are:

” 84 per cent of those interviewed were aware of PiP,

” 87 per cent of vulnerable customers (the elderly, rural dwellers and those on low income) believe they are paying more for their post following PiP’s introduction.

” 12 per cent of over 1000 items posted were charged incorrect postage;

Commenting on the research, Millie Banerjee CBE, Chair of Postwatch, said:

“Our research shows that Royal Mail’s huge effort to raise awareness and understanding of PiP has been successful but is potentially being undermined by some post offices failing to advise and charge customers correctly.

“One in every eight customers being incorrectly charged is indefensible and unacceptable. Our results clearly show the need for Royal Mail’s ‘amnesty’ on surcharges to continue until both customers and staff have adapted to the new pricing system. Additional staff training should help address this problem. In the run-up to the busy Christmas period, this should be undertaken immediately.”

Further information

Please contact:

Andy Frewin on 020 7259 1223 or 07900 263 004
Robert Forsyth on 020 7259 1364 or 07900 263 014

Notes to editors

1. Pricing in Proportion was introduced three months ago on 21 August 2006.

2. PiP has changed the way people pay for post to take account of size and thickness, as well as weight. There are now three formats of standard mail: letter, large letter and packet.

3. The Postwatch research involved two different projects:

i. Postwatch committee members visiting post offices throughout the UK to undertake three transaction types:

a. Posting A4 envelope containing one sheet of paper
b. Posting an A5 birthday card with badge attached
c. Posting a CD case

Of the 1,080 transactions, 132 were incorrect amounts, of which 15 were overcharging and 123 undercharging.

ii. Independent qualitative research undertake by Accent. This involved telephone interviews with 778 respondents, a mixture of businesses, customers in vulnerable groups, and other individuals.

4. Royal Mail normally requires intended recipients of mail for which insufficient postage has been paid to pay the shortfall plus an additional £1 surcharge. Royal Mail has stated that during the adaptation to PiP, surcharges for most stamped mail will be suspended.

5. Full details of the research can be found at www.postwatch.co.uk