18 April 2012

Royal Mail proposes uniform charge for all packet post below 750g

We have written to the CEO of Royal Mail to protest at their announcement that the lower weight/price bands for packet post are to be abolished in favour of a flat rate of £2.19 up to 750g from April 2012.

Depending on individual company contracts with Royal Mail, we estimate that the proposed new flat rate charge will represent anywhere between 25% and 50% increase to members’ postal costs.

This change is also being implemented without prior negotiation or a sufficient notification to enable our member companies any time to absorb the increase (which is unlikely) or to pass on the additional costs. It will incentivise customers to look at electronic campaigns and promotions and even where there are no ready digital alternatives to the printed products currently being mailed, members may well opt to switch to other carriers for their distribution channels. We have urged Royal to reconsider this change in light of the adverse impact that it will inevitably cause to the volume of both printing and postal services alike.