Tag: Royal Mail

SPECIAL REPORT – PAPER AND ENVELOPES: This much we know

While the direct marketing industry has finally accepted that pricing in proportion is on its way, the paper and envelopes sector seems less clued up on the upcoming changes. Yet it is just as involved.

At best, the current industry attitude toward Royal Mail’s Pricing in Proportion (PIP) plans could be described as resigned. After five long years of consultations, briefings, and speculation about the potentially – if you believe the nay sayers – devastating effects of the new pricing scheme, a date has been set. August 21 2006 – already dubbed `Black Monday’ – will see the direct marketing industry finally go head-to-head with PIP. The task for Royal Mail is now to communicate the possible outcomes of its controversial system.

Because of the vocal nature of some key players, everybody in the direct marketing industry pretty much knows what to expect – or do they? Agencies know they will have to redefine their pricings and liaise with their clients over the changes, and creatives know they will have to align their ideas with the demands of the new pricing structure. But does the supplier side of the industry know what is about to hit it?

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UK Royal Mail ‘will still dominate market in 2010’

Postcomm has admitted there are still huge barriers to competition in the postal market – including poor consumer awareness, the risk of anti- competitive behaviour, and Royal Mail’s VAT exemptions – claiming it will be years before Royal Mail’s dominance is threatened. Speaking at London’s UK Mail Show this week, Postcomm chairman Nigel Stapleton said: “The development of a fully competitive market is at a very early stage – Royal Mail will still have nearly 90 per cent of the market in 2010.” His comments were reinforced by Postcomm’s recently published annual Competitive Market Review, which shows Royal Mail still holds 97.2 per cent of the letters market, some 30 months after the market was first opened up. Private operators have only taken a 1.6 per cent share – of which 0.5 per cent operate an end-to-end service – while direct customer access is shaving off 1.2 per cent.

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UK Post Offices are on the move to protect rural service

Mobile post offices are going on the road to save services for six County Durham communities. Counters are being set up a few hours a week in Escomb, Toronto, Witton Park, Fir Tree, Witton-le-Wear, all in Wear Valley, and Cornsay Colliery, near Durham. Subpostmasters are due to resign in Escomb, Toronto and Witton Park and premises have already closed in the other three. Margaret McCombie, subpostmaster at Tow Law, has been appointed to provide the mobile service offering banking, bill payment, travel insurance and car tax. Rural development manager Matt Silcock said the aim was to safeguard the long-term future of services.

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UK Royal Mail confirms dates for price change announcements

Royal Mail has confirmed that an announcement regarding price changes for the existing Presstream tariff will be made on 15 December. Any changes would take effect from April 2006 and would apply until 21 August 2006 when the new Pricing in Proportion (PiP) tariff will be implemented. Royal Mail has confirmed that it will be announcing PiP prices in March 2006. Meanwhile PPA (Periodical Publishers Association) is due to make a final submission to Postcomm regarding the regulator’s intention to withdraw Presstream from the regulated area.

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Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

 

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