Interview with Allan Leighton
Interview with Allan Leighton
Read MoreTag: Royal Mail
Interactive Prospect to buy UK Postal Preference Service for 4.3 mln stg
Interactive Prospect Targeting Holdings PLC, the online direct marketing company, said it will buy Postal Preference Service Ltd, an offline and online direct marketing firm, from Royal Mail and the Dutch Post Office in a deal valuing PPS at 4.3 mln stg.
Read MoreIndustry relief over UK PIP 12-month delay
Postcomm’s decision to delay the introduction of Royal Mail’s controversial pricing in proportion (PIP) scheme until September 2006 has been met with a sigh of relief from industry chiefs. The decision follows two years of extensive consultation by the regulator, and revised proposals from Royal Mail. The industry now has the full 12 months most interested parties desperately requested to prepare for change. Peter Carr, chairman of Postwatch, says: “It was essential customers were given a year’s notice of this important change. Large mailers understand what is proposed and how to take advantage of the new structure. But many enterprises and domestic customers generally do not. “The challenge for Royal Mail is to bring its whole customer base up to the same level of understanding.” Postcomm chairman Nigel Stapleton comments: “PIP will promote the development of a successful and growing postal market by allowing Royal Mail to bring prices more closely in line with its costs.”
Read MoreRoyal Mail can deliver a boost for home shopping
Home shopping companies should do well out of changes to the Royal Mail’s structure because it will lower the cost of posting catalogues, says broker Numis, which has given its stamp of approval to Findel and N Brown. Under the new tariff system, which comes into effect in September next year, it is expected that posting smaller, heavier items will be cheaper while mailing costs for large but light items will rise. Although the cost of sending out orders to customers is not expected to change significantly, Numis says the lower cost of sending out catalogues that should result from the changes is a boon for home shopping companies.
Read MoreHow thick? How heavy? What size?
Postwatch, the watchdog for postal services, welcomes the year’s notice that customers have been given of the fundamental change in the way Royal Mail postage will be priced. Postwatch and a cross section of British businesses, particularly direct marketers, campaigned for 12-months notice and acknowledge the postal regulator, Postcomm, has listened to their concerns. As widely expected Postcomm is allowing Royal Mail to change its pricing structure. Instead of price being determined by just the weight of the item, from September 2006 postage will depend on size, thickness and weight.
Peter Carr, Chairman of Postwatch, commenting on Postcomm’s announcement said: “It was essential customers be given 12-months notice of this important change in the way postage is priced. Even in the 21st century post remains one of the essential services and everybody will be affected by Postcomm’s decision.
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