Tag: UK

Royal Mail can deliver a boost for home shopping

Posted by | Aug 19, 2005 | |

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.

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How thick? How heavy? What size?

Posted by | Aug 18, 2005 | |

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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UK cost of postage to be based on size and shape of mail

Posted by | Aug 18, 2005 | |

The cost of sending letters and parcels will be determined by the size and shape of an item as well as its weight, according to plans approved by the postal regulator Postcomm yesterday. The new pricing structure will increase the cost of sending lightweight but bulky items, such as photographic film, video tapes and large greeting cards, but will cut the postage on some heavier items, such as catalogues and books. The cost of sending a 480g box of chocolates, for example, will decrease from Pounds 1.78 to Pounds 1.59. But the charge for a 30cm by 38cm poster in a 300g cardboard tube will rise from Pounds 1.07 to Pounds 1.59. The system will be introduced in September 2006, following a multimillion pound marketing campaign, but will be revenue-neutral for Royal Mail. The national operator has been pushing for changes to make postal charges fairer and more reflective of the true cost of delivery to help it compete once the postal market opens to full competition next January. Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, said: “This is a small but very welcome step in that direction.”

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Postcomm allows UK Royal Mail to price post by size as well as weight

Posted by | Aug 18, 2005 | |

Postcomm has today given Royal Mail the all-clear to charge postage according to the size of a letter or packet as well as its weight.

Royal Mail’s new Pricing in Proportion (PiP) price structure will be the greatest change in postal pricing since the introduction of the Penny Black. It will come into operation, at the earliest, in August 2006. Its introduction will mean some post will cost less to send than it does now but light-weight items that are also large or bulky will cost more.

Today’s announcement follows two years of extensive consultation by Postcomm and reflects substantially revised proposals from Royal Mail. In its most recent consultation, Postcomm proposed to allow Royal Mail to introduce the new charges from next April. After analysis of responses, this has been put back to August next year to allow postal users at least 12 months to prepare.

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UK DX postal chief quits after strategy row

Posted by | Aug 17, 2005 | |

The chief executive of the business-to-business postal group DX Services has resigned following what is understood to have been a disagreement about the group’s strategy ahead of the liberalisation of the British letters market at the beginning of next year. Peter Brougham, whose salary is pounds 243,000 a year, will stay on in his role until a successor is appointed. DX, which was founded in 1975, was demerged from its former parent, Hays plc, late last year when it was listed on the London market. Yesterday, DX’s chairman, John Maxwell, said: “Peter successfully demerged the business out of Hays, stabilised revenues and profits and established the business as an independent company. In accepting Peter’s notice, the board has the opportunity to review and agree the strategies for growth presented by the deregulating postal market.”

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