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UK Royal Mail targets businesses in multi-million pound campaign to prepare for new pricing system

Royal Mail has launched a direct mail campaign to help businesses across the UK prepare for the introduction of its new pricing system, Pricing in Proportion (PiP). Packs providing information on the new pricing system, as well as advice on how companies can manage the impact of PiP, are being sent to nearly half a million small, medium and large businesses from this week. The mailing follows a series of tailored mail-outs in December 2005 to companies in the marketing, publishing, charity and home shopping sectors who will be most affected by the changes Pricing in Proportion will be introduced on 21 August 2006 and takes into account the size and shape as well as the weight of mail.

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Deutsche Post rival Pin to expand services throughout Germany

Pin Group, the German postal services company, plans to expand significantly its activities and win customers from Deutsche Post, the national postal services provider. Deutsche Post now only holds the monopoly on letters under 50g and will finally lose its monopoly in 2008. Management said that Pin planned to set up many new post boxes across Germany in 2006 and 2007, particularly in busy places such as shopping centers.

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Pims acquisition creates more direct mail capacity

Corporate Mailing Matters (CMM) has completed the acquisition of the business and assets of direct mail company Pims National. Pims will now trade as CMM National (a division of Corporate Mailing Matters), in a move which brings CMM’s annual turnover close to GBP30m. CMM said that the acquisition of such a profitable, well managed business with an experienced and capable management team, is designed to extend CMM’s production and management capacity to support the company’s growth objectives.

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New US domestic prices effective January 8, 2006

The Governors of the US Postal Service voted November 14 to accept the Postal Rate Commission’s recommendation to increase most rates and fees by approximately 5.4 percent. This price increase – the first since 2002 – is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place USD.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. Among the adjustments, the 1 ounce single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents. The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

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Kalitta Air seals USPS Deal

The US Postal Service is changing the way it moves mail to soldiers and others in the Middle East by signing a large contract with Kalitta Air. Kalitta Air beat out four other bidders for the contract requiring it to deliver all the mail to the Middle Easter each day, which will necessitate the use of subcontracted carriers as well. Five-year-old Kalitta, which is headed by industry veteran Conrad “Connie” Kalitta, had already been carrying a substantial portion of the mail to the region, but the new contract gives them more responsibility beyond just moving the mail. The Postal Service moves, literally, tons of packages and letters to Iraq, Afghanistan and other countries in the region each day. The agency says it moves 200,000 pounds of military mail daily to the Persian Gulf region. “You name it, they get it,” Postal Service Vice President of Network Operations Paul Vogel said in an interview.

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Competition might mean the end of the Royal Mail's monopoly, but the 350-year-old organisation could still deliver surprises

THESE are testing times for Adam Crozier. The Royal Mail’s Falkirk-born chief executive has been facing the prospect of open competition for his pounds-6 billion-plus monopoly since January 1. Foreign players, including TNT and DHL, owned respectively by the Dutch and German national post offices, as well as Birmingham-based UK Mail, part of Business Post, are all eyeing up a slice of the action. Most of the 14 players who have been awarded UK operating licences by regulator Postcomm are hoping to cherrypick the most profitable parts of Royal Mail business.

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