Royal Mail have introduced a two-tier pricing structure between online and offline channels for the 1st time

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http://www.nfsp.org.uk/News/increased-p ... um-parcels" onclick="window.open(this.href);return false;

http://www.nfsp.org.uk/AppImages/nfsp.pngRoyal Mail informed Post Office and NFSP last week that it intends to increase the price of sending small and medium parcels by 5p and 6p respectively.

The change comes into effect on 29 March 2016, along with increases to First and Second Class stamps (1p) and Large Letter First Class and Second Class stamps up to 100g (also 1p).

The price increases for small and medium parcels will apply only to customers using Post Office branches, however. Customers using Royal Mail online channels will be exempt from the increase.

This is the first time that Royal Mail has introduced a two-tier pricing structure between online and offline channels.

Royal Mail argues that the price differential more accurately reflect the costs of providing services online and in-branch. Customers opening an account with Royal Mail for example are required to print their own labels and enter information themselves.

The move reflects Royal Mail’s strategy to develop closer relationships with mail customers. Providing incentives to customers to open online accounts provides the company with detailed information about customers’ use of mail services, data that can be used to inform future product and marketing decisions.

As yet, Royal Mail has not pro-actively communicated to customers the price change.

In an increasingly competitive market, NFSP recognises that it is vital to innovate and deliver improvements in customer service. Today, that means offering services online to complement and support in-branch sales and support.

The NFSP has stressed to Royal Mail that Post Office branches are essential to the continued effective delivery of universal service and its commercial strategy. The network provides excellent value to Royal Mail, offering extensive reach into every community and highly-valued customer service.

The NFSP will continue to press Post Office and Royal Mail for the best possible remuneration for subpostmasters. Branch operators invest considerable time and money in support of Royal Mail and are entitled to receive appropriate reward for that support.

It is perhaps no surprise that a price differential between in-branch and online would emerge to reflect changing customer habits and growing competition. This development illustrates once more how vitally important it is for subpostmasters to strengthen their accompanying retail offer and to exploit opportunities to promote to customers the unique range of products and support branches can provide.

The Post Office is reminding branches to ensure they use Horizon to process online-processed parcels in order to ensure they receive payment, and will be sharing further information over the next few weeks.

Details of the price changes are available here: http://www.royalmail.com/prices2016" onclick="window.open(this.href);return false;