Postal bodies clash over price increases

Consignia and consumer watchdog Postwatch have clashed over price rises
for direct marketing services only four days after the postal operator
signed its new operating licence. Postwatch claims Consignia “held a gun
to the head” of Postcomm,
demanding lucrative services such as door-to-door and Mailsorts 1, 2
and 3 remain outside price controls imposed by the industry regulator. But
Royal Mail business and consumer markets managing director Gillian
Wilmot says price was not part of the negotiations with Consignia. “We
have not agreed any price increases and Mailsort is not going to be
linked to inflation as Postwatch has suggested,” she says. A Postwatch
spokesman says: “Originally Postcomm intended to impose
price controls on all Royal Mail services but Consignia held a gun to
the regulator’s head claiming it would not sign unless it got what it
wanted.” * Consignia has awarded its two-year interactive media account to
OgilvyInteractive, part of OgilvyOne, following a pitch involving 30
agencies. Ogilvy will spearhead Consignia’s move towards greater Web-
based services. Copyright: Centaur Communications Ltd. and licensors Page
: 3PRECISION MARKETING, 30th March 2001