Tag: Europe

The Impact of Competitive Entry into the Swedish Postal Market

Posted by | Feb 12, 2007 | |

This paper examines how Sweden Post confronted its new competitor and describes the impact of postal competition in Sweden. The paper begins by tracing the origins of competition in the Swedish mail market. Next, it quantifies the challenges faced by the new entrant, CityMail, into a business characterized by large economies of scale. Third, it describes Posten’s responses to competitive entry. Fourth, it assesses the impact of competition on Sweden’s postal prices. Finally, it quantifies the impact of Posten’s response to competition on Swedish consumer surplus.

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Royal Mail offers free For Dummies® book on UK direct mail

Posted by | Feb 11, 2007 | |

The Royal Mail is offering free copies of “Direct Mail For Dummies®” which “provides the practical help and techniques you need to make mailshots work for you and your business”.

The 132-page book – it isn’t simply a PDF – includes tips and techniques for direct mail success, and is aimed at those with little or no experience of direct mail.

The title covers planning, execution and management of a successful mailshot. Appropriately for the Royal Mail, “it explains why direct mail is so successful and shows you how it can benefit your company in terms of customer relationships and your bottom line.”

While it is not directed at the charity sector, its content is likely to be just as relevant to charity staff as those at for-profit organisations.

To receive a free copy you simply need to register your contact details with the Royal Mail.

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Chronopost to use French tobacconists as delivery points

Posted by | Feb 9, 2007 | |

La Poste parcels subsidiary Chronopost is to use a network of 3,000 French tobacconists as delivery and pick-up points for customers ordering online.

The new ‘Chrono Relais’ service is a payable option for clients who will not be at home to receive packages during the day and find a nearby tobacconist more convenient than visiting the post office. Tobacconists are also open longer hours.

Clients will also be able to drop-off parcels at the tobacco outlets, to be picked up later by Chronopost, and pay for sending them.

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UK Post office closure proposals update

Posted by | Feb 9, 2007 | |

Postwatch, the watchdog for postal services, urges customers to have their say on the future of the post office network by responding to the government’s consultation, due to close on 8th
March.

The government is proposing to close up to 2,500 post offices throughout the UK, establish new minimum access criteria to maintain a national network, put in place 500 ‘outreach’ services such as mobile post offices, and continue to fund the rural network to 2011. These proposed changes seek to address the network’s current difficulties, with 90 percent of rural branches failing to make a profit, revenue from government transactions falling by GBP 68 million last year, and overall financial losses for the network expected to rise from GBP 111 million to GBP 200 million this year.

Commenting on the consultation, Millie Banerjee, Chair of Postwatch, said:
“The government’s proposals signal a massive change for the post office network, and anyone who uses these services should take an interest in the consultation.

“Postwatch has been urging the government to take action to address the current problems and to put in place a sustainable way of meeting customers’ post office needs. We therefore welcome the opportunity the consultation gives to contribute our thoughts on the appropriate next steps.

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ComReg approves 15% rise in cost of Irish standard letter postage to 55 cent

Posted by | Feb 9, 2007 | |

The Irish Commission for Communications Regulation (ComReg) has today, following a public consultation, concurred with An Post’s application for an interim increase in the price of the basic stamp from 1st March next.
ComReg is the National Regulatory Authority for the postal sector in Ireland and its prior approval is required for postal rate changes in the reserved area. While prices for domestic standard letters (up to 50g) will now be 55c, prices for mail in the 50-100g category (for example, a typical large letter) will fall from 60c to 55c. In addition, business customers using An Post’s Ceadúnas (Permit) services or meter franking machines will receive a discount of 1c per item, thereby paying no more than 54c for a basic letter.
According to ComReg, An Post outlined in its application that it has absorbed significant cost increases including wage increases of 18.9% under National Wage Agreements, since August 2003, when the price of posting a basic letter was last increased. These cost increases are clearly significant given the nature of the postal service. Other companies have been faced with similar cost increases, and as a result consumer prices generally have increased by almost 11% over the period August 2003 to December 2006. An Post estimates that its price proposals will increase postage costs by slightly less than consumer prices generally.

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