Royal Mail revises pricing plans

The Royal Mail is revising its proposals on size-based pricing after consultations with the magazine industry.

The proposals – which looked at replacing the pricing system, which is largely based on weight, with a size and weight-based structure – sent shockwaves through the publishing world when they were announced last year.

Such changes would mean that a tabloid-size magazine would be charged more than an A5 format title.

The Periodical Publishers Association estimated that for business-to-business publishers in particular, the shift in pricing could mean a postal cost increase of as much as 45%.

Following a consultation period, however, which unearthed negative feedback to the proposals from the publishing industry, the Royal Mail has said it will revise its plans.

In a letter sent to the PPA, Royal Mail marketing and channel sales director Ross Drake said: “The responses have helped us to better understand the impact on different industry sectors and individual companies.

“As a result, we are currently working to revise the proposals to take on board many of the points raised, but also to keep to the main principles of our initial consultation document.”

The revised proposals are expected to be made public by the end of this month.

The PPA welcomed the Royal Mail’s decision to revise its proposals.

Director of circulation Nicola Rowe said: “We hope the revisions will be positive and lessen the impact for publishers. It is a step in the right direction.”

Although full details of the revisions have not yet been made public, they are expected to look at modifying the category thresholds for size and weight.