Tag: Royal Mail

Royal Mail’s Proposal to Implement Size Based Pricing – Next Steps Following Postcomm’s First Consultation

Posted by | Oct 1, 2004 | |

Postcomm and Royal Mail have agreed that, in view of the complexity of the issues involved and the significant implications for many Royal Mail customers, more time is required to assess Royal Mail’s Size Based Pricing (SBP) proposal. Accordingly, the earliest implementation date, if the application is allowed to proceed, will be April 2006. In April 2004, Postcomm issued a consultation document seeking the views of interested parties on Royal Mail’s proposal to introduce SBP. Postcomm received more responses (over 120 individual responses, about 1,400 standard letters and around 8,000 postcard petitions) than in any consultation we have previously conducted. Postcomm has published the non-confidential individual responses on its website. All of the standard letters and postcard petitions were opposed to Royal Mail’s proposal, while fewer than 25% of the individual responses that were received, were in favour of Royal Mail’s proposal. Whilst this does not reflect the balance of actual ‘winners’ and ‘losers’ from the implementation of SBP, these responses raise some important issues requiring further consideration.

Read More

UK catalogue industry uproar at size-based pricing delay

Posted by | Sep 24, 2004 | |

The catalogue industry is up in arms following Royal Mail’s decision to further delay the introduction of size-based pricing until April 2006, saying it will lead to increasing costs for mail order companies. As a result of the size-based pricing scheme, first mooted two years ago, many catalogue firms have been increasing their pagination to take advantage. But Nigel Swabey, chief executive of mail order company Scotts of Stow, says: “It takes time to increase the pagination of a catalogue from 48 to 150 pages, and we have made a massive investment to achieve this. Now that the introduction of size-based pricing has been delayed a further six months, we find ourselves paying a postage rate that is desperately uncompetitive.” A Royal Mail spokeswoman says: “We understand why some companies are not happy with the situation. We want to introduce size-based pricing as soon as possible, but, ultimately, it is up to watchdog Postcomm to decide when it can be implemented, once the consultation period has ended.

Read More

Size pricing unlikely to be introduced in UK before 2006

Posted by | Sep 21, 2004 | |

Size-based pricing is unlikely to be introduced before April 2006, according to postal watchdog Postcomm. Up until now, it was thought that the new pricing system could be introduced as early as September 2005. Speaking at a meeting organised by Royal Mail, Richard Moriarty, Postcomm director of competition and regulation, said Postcomm had received 9,000 responses to its size-based pricing consultation and was undertaking a thorough analysis of all feedback, while continuing to work with Royal Mail on understanding the cost justification for the proposals. At the latest meeting, Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, acknowledged magazines were particularly affected by the size-based pricing proposals. She said the publishing market was an important sector and that Royal Mail was committed to working with PPA to address publishers’ concerns around the introduction of a uniformity measure for magazines.

Read More

UK postal firms warn of risk in rushing to open up the mail

Posted by | Sep 21, 2004 | |

Postal operators warned yesterday that the decision to end Royal Mail’s letters monopoly 15 months earlier than planned could result in a “cowboys’ charter” and damage attempts to introduce more competition into the market. Royal Mail said it welcomed the earlier opening of the market provided the “handcuffs” which prevent it from making an acceptable return on revenues came off. Adam Crozier, its chief executive, also said there had to be careful licensing of new entrants to avoid a “free-for-all with customers left to find their way among potentially dozens of rivals with varying quality of service”. Existing private mail businesses gave the proposals a guarded welcome but also warned that the liberalisation of the market needed to be handled carefully or it could damage consumer confidence and ultimately strengthen Royal Mail’s stranglehold. Britain’s longest-established private mail business, DX Network Services was one of those to express reservations. Guy Buswell, the managing director of UK Mail, was also apprehensive.

Read More

UK Royal Mail wants more scope to set stamp prices

Posted by | Sep 21, 2004 | |

Royal Mail has called for more freedom to set stamp prices, especially for bulk business mail, to enable it to better compete with private sector groups entering the UK postal market. The state-owned group was responding to proposals by regulator Postcomm to liberalise fully the UK postal market by January 2006, more than a year earlier than planned. About 30% of the postal market has been open since April last year, meaning that private sector companies can now offer bulk mail services consisting of more than 4,000 letters. A further 30% of the market was to be opened by April next year, with full liberalisation by April 2007. But Postcomm is now suggesting the middle stage be scrapped and competition brought in to all parts of the postal market by January 2006. Royal Mail said the market should be opened sooner but only if pricing restrictions were removed.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

How ready do you feel for the de minimis changes coming in July?

Thank you for voting
You have already voted on this poll!
Please select an option!




View ResultsHide Results

Post & Parcel Magazine


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.

Subscribe to the Magazine

 

Pin It on Pinterest