Tag: Royal Mail

1 Postcomm consults on zonal pricing by Royal Mail

Postcomm, the independent postal services regulator, has today published a document seeking views on the issues that it should take into account when it assesses proposals by Royal Mail to charge large mailers different rates depending on where in the UK their mail is delivered. (Royal Mail calls this zonal pricing.)

Royal Mail made an application to Postcomm in July which proposes to introduce zonal pricing to certain bulk mail products used by the largest mailers, such as banks, utilities, advertisers, charities and government. At present Royal Mail charges these large mailers the same “one price goes anywhere” rate. Royal Mail says that introducing zonal pricing for some bulk mail products would help bring its prices more closely into line with its costs. Royal Mail wants to be able to charge less than at present for areas where it is cheaper to deliver and charge more for areas where it is more costly to deliver. Such changes cannot be implemented without Postcomm’s prior approval.

Royal Mail’s application does not affect any other postal products, including the “one-price-goes-anywhere” stamp available to the public – a core part of the universal postal service commitment – or those business mail services that are also included in the universal service (Cleanmail – first and second class – and Mailsort 1400 – first and second class).

Postcomm will evaluate carefully the views of interested parties in response to the document published today. In addition, when it has obtained from Royal Mail all the information necessary to make a full assessment of the application, Postcomm will conduct a further consultation about its assessment of whether or not it is minded to accept it.

Notes for editors

Royal Mail has applied to introduce zonal prices for these bulk mail products:

Mailsort 120 – first and second class, OCR and CBC
Mailsort 700 – first, second and third class
Mailsort 1400 – third class
Presstream – first and second class
Walksort – first and second class
Most of Royal Mail’s business tariffs are currently the same, regardless of delivery location. Royal Mail already applies zonal pricing to some of its “access” agreements, under which it delivers mail “the final mile” for large customers and other postal operators.

Printed copies of Zonal pricing by Royal Mail (pdf, 142KB) are available from Postcomm at 6 Hercules Road, London, SE1 7DB. Responses, which should go to Tony Spencer, are requested by 10 December 2006.

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Mail service in rural areas

The Royal Mail has made significant strides in recent years, but faces many more testing times as it gears up for the challenge from private operators entering the postal market.

However the line has to be drawn somewhere in terms of levels of service, and the apparent idea that some rural customers will be deemed as too rural to receive deliveries is a step too far.

The Royal Mail is a lifeline service for those who live in the remotest parts of the country, and to abandon these customers because of where they live is unacceptable. One has to wonder who dreamed up a proposal which would see anyone living a 15-minute round trip off the beaten track jettisoned from the delivery round.

It is akin to the local police pulling the plug on rural crime or the power companies pulling down the electricity cables. Those who choose to live in remote areas understand it will restrict their access to services, but they should still get the basic package, and mail through the letterbox should be part of that.

The Government must ensure that the Royal Mail’s desire to make itself a lean organisation is not achieved at the expense of customers in the far-flung corners of Scotland.

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UK Royal Mail selects six groups for GBP 1.3m 'tactical' design work

Royal Mail has appointed six consultancies from more than 200 applications to create its E2m (GBP 1.3m) ‘tactical’ design roster, which is due to run for up to four years.

The successful consultancies – Home, Meteorite, Open Agency, Rufus Leonard, Start Creative and True North – were selected from a final shortlist of about ten groups and will be responsible for all of Royal Mail’s internal and external ‘tactical design projects’, says Andrew Hammond, head of campaigns for Royal Mail. The projects will have a budget between E1.5m and E2m (GBP 1.0m-GBP 1.3m).

Open Agency, Start Creative and Home are retained from the previous five-strong roster, while The Design Group and Carter Wong Tomlin are dropped from the new roster, despite re-applying. The contracts run for an initial three years, with a possible one-year extension, but no groups will be added or removed during that time, says a spokeswoman for the company.

The roster does not extend to stamp design and related materials, such as year books, which are commissioned separately and overseen by Royal Mail’s Stamp Advisory Committee. Consultancies will work on projects across Royal Mail, but not for Royal Mail Group divisions Parcel Force and the Post Office.

‘We are facing a massive challenge in terms of the market opening up and we need the skills of design consultancies to meet these challenges, internally and externally. This is a good mix of groups, all with very different skills,’ says Hammond.

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More to door

While the ecommerce sector rests on efficient delivery, customers are more interested in knowing when an order will arrive than getting it quickly, reports Sean Hargrave

Although some consumers may have been confused at the Post Office counter, the evidence is that the country’s etailers were ready for the Royal Mail’s Pricing in Proportion (PiP) scheme introduced last month.

PiP changed the way the Royal Mail charges for deliveries by considering an item’s size as well as its weight – hence the addition of a ‘large letter’ category for letters larger than the normal C5 business letter yet smaller and lighter than a parcel. In all, 80% of items carried by Royal Mail will either remain the same price or be cheaper, a spokesman predicts.

The Royal Mail’s optimistic vision that the scheme has been introduced without disruption has been mostly backed up by ecommerce sites. Online photo print service Photobox’s MD Mark Chapman, for example, says there was enough warning of changes to the pricing of the million packages it sends through Royal Mail each year and that the moves are sensible.

“We’d been consulting with Royal Mail for a year or so, so every major ecommerce provider would have known about the changes,” he says. “Overall, we reckon our post bill will come down. I think, though, for the next couple of months ecommerce players are going to be in flux as they wait for their bills from Royal Mail to confirm they’ve got the savings they were expecting. When we have confirmation we’ll be able to pass on the savings through our prices.”

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UK Royal Mail adds online post tool

Royal Mail has redeveloped an automated web-based pricing calculator to assist customers with its new Pricing in Proportion (PiP) payment structure.

PiP establishes the price of sending a letter based on size and weight, while the calculator (Pricing Configurator) helps customers determine exact costs.

Royal Mail has integrated the calculator more fully with its web site to improve speed and customer experience. The Pricing Configurator also links to its StampNow application which enables businesses to print their own postage.

‘The first implementation of a pricing calculator did not integrate fully with the common server,’ said Royal Mail head of ebusiness Dennis Greene.

‘It is now faster and the user experience is less disjointed. The system is a quantum leap better.’

Vendor Selectica redeveloped the system, which can be found on Royal Mail’s web site.

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