Clients and agencies slam Royal Mail pricing scheme

Royal Mail’s plans to introduce a new pricing system based on size – not just weight – have been attacked by both agencies and clients and will, according to one agency chief, “stifle creativity and damage the direct mail medium”.

The proposal, first revealed in Precision Marketing last month (PM April 5), has been put forward by managing director of business and consumer markets Gillian Wilmot. It is not known whether the Media Markets division supports the initiative.

WWAV Rapp Collins Group, Europe’s largest direct marketing services company, has written to Wilmot protesting against the move. In the letter, WWAV Group chairman and chief executive Chris Gordon accuses the organisation of “putting the business interests of Consignia ahead of that of its customers”.

An Incorporated Society of British Advertisers (ISBA) spokeswoman says: “Although we recognise Royal Mail has to cut costs, we are concerned this move could lead to the standardisation of mailings – and therefore hit response rates.”

WWAV has analysed a number of ‘live’ mailings in the automotive and packaged goods sector, which, it claims, show pack costs could more than double, due to increased postage rates.

Gordon adds: “These proposals, if adopted, could make direct mail considerably less attractive for many clients and stifle creativity.”

The move will rule out many campaigns, for instance Archibald Ingall Stretton’s award-winning Skoda badge mailer. AIS partner Stuart Archibald comments: “It’s a shame that all the positive things Royal Mail is doing to promote the medium may be scuppered by this proposal.”

No-one was available at DMA (UK), as Precision Marketing went to press. Royal Mail is hoping to present its proposals for the new pricing structures to regulator Postcomm this summer.