Tag: Royal Mail

UK Postcomm refutes claims on zonal pricing

Postcomm has refuted reports that Royal Mail may be considering introducing zonal pricing across its public mail services. Postcomm’s response follows claims by Royal Mail chief executive, Adam Crozier, that Royal Mail loses an average of 5p on every first class letter. Said a Postcomm spokesperson: “Royal Mail cannot introduce ‘zonal pricing’ – nor can Postcomm let it – as most of Royal Mail’s services are ‘universal’ – and an Act of Parliament requires that universal services must be provided at a national uniform tariff.” Exceptions to this rule are the non-universal Presstream service which has always been zonally priced and also Mailsort 3, the slowest bulk-mail service which could in principle be zonally priced. The same principle also applies to access services where Royal Mail delivers items on behalf of other operators.

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UK Royal Mail launches discount promo to publishers

Royal Mail is launching a promotion offering consumer publishers a 25% discount in order to help the weekly magazine market boost its marketing activity and sales.

Royal Mail claims that the reduced distribution costs will potentially allow weeklies to increase their marketing activity, using the money saved from the discount programme to increase their overall subscription circulations.

To qualify weekly magazines must have less than 5% of their sales via subscription as recorded in the December 2003 ABC audit figures, and must apply for the offer between August 2 and September 24 2004. The discount will apply for 12 months from the first discounted mailing, or from October 8, whichever date is earlier.

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UK Post Office’s new offerings fail to convince regulator

The postal regulator has launched an investigation into the raft of new services being offered by the Post Office, after concern that they may not be meeting the needs of customers.

In the past few months the Post Office has expanded to offer car and travel insurance and personal loans. It plans to offer a fixed-line telephone service early next year.

But Postcomm is unsure that these services will be attractive to the Post Office’s customers in deprived urban areas.

“Postcomm is not totally convinced that the products are right,” said a well-placed source.

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Royal Mail faces 5% refunds to bulk mail clients

Postcomm has issued the first details of compensation under new rules to refund Royal Mail’s bulk mail customers.

Royal Mail has been asked to pay back up to 5 per cent of income from companies affected when it failed to attain service targets last year. The move could cost it millions of pounds in refunds to frequent mailers, such as financial companies.

The postal operator has agreed to the compensation levels, which should be repaid by the end of August, according to Postcomm’s website.

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Changes to Royal Mail’s Special Delivery next day service

Royal Mail announced today that the standard compensation for its Special Delivery Next Day service will increase from GBP250 to GBP500 from 28 October 2004. At the same time, the guaranteed delivery time for Royal Mail’s Special Delivery Next Day service will move from 12.00noon to 1.00pm from 28 October 2004. These changes have been agreed by the regulator, Postcomm.

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