Royal Mail offers pricing shake-up

The Royal Mail will bow to demands to look at introducing a new pricing system for business post with the cost of the stamp depending on the day of delivery.

If introduced, nominated pricing would mean the end of the two-tier first and second class system with enormous implications for the 5.5bn direct marketing industry. Customers would be able to specify the exact day they would want the letter to arrive.

The move would be restricted to business mail – which currently accounts for about 90 per cent of the Royal Mail’s 4.8bn turnover.

Direct Marketing Association director of legal affairs Colin Fricker says: “There are a number of occasions when deliveries are very time sensitive. We would like to be able to dictate the exact date of arrival.”

Royal Mail head of external communications Nigel Lawrence says that because of cost, the initiative would be unlikely to be introduced in the consumer postal market.

He says the Royal Mail will respond to demands from the industry for this kind of service, pro viding it can be met at a satisfactory price.

But Fricker believes the service should be provided at the same cost as the existing service.

Lawrence adds that a cast-iron guarantee on delivery day would be possible, but very expensive.

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now