Postal Services: Now size matters
Last month, Royal Mail introduced its postal cost plan, Pricing in Proportion.
How many companies were ready for the change? How many had put in months of preparatory testing and re-testing? How many others are now in a tail-spin, awaiting their first Royal Mail invoice under PiP and wishing they’d taken more notice earlier?
Few will admit to being in the latter camp, inevitably. Abacus, the mail order data pool supplier, says 80 per cent of its Alliance members claimed last summer that they would be ready by now. Mail order firms are among those set to benefit most, since they can now send heavier catalogues at no extra cost. Some 70 per cent of Abacus Alliance members believe it will mean good news for them, and 31 per cent are planning to increase their circulations as a result.
Nevertheless, admits Roger Williams, Abacus’ marketing director, the reality is that smaller companies “have not thought about the implications and it’s suddenly upon us”.
More worryingly, an online survey conducted by mailing equipment company Neopost found that 75 per cent of 1,000 businesses sampled had done nothing about PiP by June this year.
Many businesses are under the impression that they spend a minimal amount on postage and need not pay heed to the change, says Walsh. “Actually, if they added up their postal costs, they would be shocked.” Neopost estimates postage accounts, on average, for 30% of the cost of a typical direct mail campaign.
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