Royal Mail has today confirmed that its new pricing system, Pricing in Proportion (PiP), which means mail will be charged by size as well as weight, will come into force on 21 August 2006. The date was selected following feedback from a number of Royal Mail’s customers. An extensive communications campaign, explaining the new pricing system, will take place prior to the change.
Read MoreComment on UK postal reform by John Blundell, director general of the Institute of Economic Affairs.
Read MoreThe DMA (UK) has hit out at Postcomm’s proposed four-year price control scheme for Royal Mail, branding the regulator’s plan to measure quality of service “farcical”. The trade body, which also questions why mailing clients should be forced to pay for Royal Mail’s pension deficit, has submitted its response to Postcomm’s consultation. David Robottom, director of postal affairs and industry development at the DMA, explains: “Price control is a complex issue that needs to be fully understood. We believe Postcomm must be wary of customer expectations of lower prices once the market opens, as they aren’t likely to change much. The plan to group products for quality of service is farcical.
“Royal Mail’s pension deficit is set to be met by users under the consultation, and we believe this is wrong. The responsibility should fall on Royal Mail and the Government, not users.”
Read MoreRural communities across Scotland will suffer if proposed changes to postal services go ahead, the chief executive of the Royal Mail warned yesterday. Adam Crozier also said job cuts at the Royal Mail are inevitable as the organisation strives for greater efficiency. But he insisted there are no plans to close any more post offices north of the border. Mr Crozier was speaking as the Royal Mail unveiled findings of a study highlighting its impact on Scotland’s economy. His comments will re-ignite concerns that proposed changes to UK mail delivery services will lead to an inferior service for the Highlands and Islands.
Read MoreIt has been a long wait, but all systems are now go for Royal Mail’s plans for size-based pricing. Postcomm has given it the all clear and Pricing in Proportion (PiP), as it’s now called, will be phased in by August 2006. The announcement two weeks ago has been heralded as “the greatest change in postal pricing since the introduction of the Penny Black”. In the B2B publishing sector, it has also been the most controversial. PiP is likely to result in postal price increases for A3-sized magazines. They now come under the large letter format and that means a higher price bracket. “It will be the lighter-weight A3 titles that will suffer,” explains PPA director of circulation Nicola Rowe. And this could mean a rethink by B2B publishers over future magazine sizes. The magazine sector, which relies heavily on posting out issues, will be hit the hardest. “It hits us purely from a distribution point of view,” says William Reed production director Chris Reed. “It’s a matter of trying to find a solution to get around it.”
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