Publishers hit back at Royal Mail pricing plan
Magazine publishers are threatening to withdraw business from Royal Mail if the postal operator proceeds with plans to charge publishers according to the physical size of their titles.
The Periodical Publishers’ Association’s postal committee has called an emergency committee meeting to consider alternative distribution methods, amid fears that the planned postal pricing regime could impose punitive costs on magazine owners.
The row comes just weeks after Royal Mail launched a service offering consumers discounts on hundreds of magazine titles when they subscribed through Royal Mail. It is not known whether publishers are considering ending their co-operation with the company regarding the service.
Royal Mail is looking at the possibility of pricing mail by size rather than weight because this would allow it to improve the efficiency of sorting and distributing mail.
“The weight-based system is out of date, and this change would make it simpler for our customers to use the post,” said Royal Mail business and consumer markets managing director Gillian Wilmot. “The kind of mail most of our customers send would not be affected and the majority would pay the same or less.”
Royal Mail’s project team will present its plan to the executive board of parent firm Consignia next month.
The Direct Marketing Association opposes the changes because it believes they will reduce the industry’s competitiveness, while advertisers and agencies fear size-based pricing may stunt creativity.
Wilmot: most customers will be unaffected by the post pricing changes
COMMENT
Size-based pricing is an initiative stemming from a company very much preoccupied with shortterm thinking. Faced with crippling costs, and competition in the postal market, Royal Mail is having to think while looking over its shoulder. And yet if it alienates
some of its major customers, it will hardly be paving the way for a brighter future.
It also faces the possibility that many of direct marketing’s newest customers, such as FMCG brands, may be put off by the extra costs associated with creative campaigns.
Copyright Haymarket Publishing LTD. Aug 22, 2002
