First and Second Class stamp letter prices unchanged

[POSTMAN]

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Royal Mail press release...
http://www.royalmailgroup.com/first-and ... -unchanged" onclick="window.open(this.href);return false;


We've announced that the price of a First Class letter stamp will remain unchanged at 60p for 2013. A Second Class letter stamp will remain unchanged at 50p. The price of a First Class Large Letter stamp will remain at 90p and a Second Class Large Letter stamp at 69p.

Last year, Ofcom’s decision on a new regulatory framework for UK postal services gave us greater freedom in the way we set prices. It put a cap on Second Class stamps for letters of 55p, indexed in line with CPI for seven years.

There was no cap for First Class stamp prices. We are pleased that we do not need to draw on this pricing freedom and will therefore not increase our First and Second class stamp prices for letters and Large Letters this year.

Value

Our stamp prices are amongst the best value in Europe. In five of the six weight steps for First Class and Second Class mail, the cost of UK stamps is ranked in the bottom half of prices when compared with other European Union countries.

In some cases, the UK stamp price is the cheapest in the European Union. For example, in the 21g to 50g and 51g to 100g weight bands, the 50p price of a Second Class stamp is the lowest of any European Union country. In the 51g to 100g bracket, the 60p price for a First Class stamp is the fifth lowest in Europe.

Changes to our parcels range

Following a public consultation announced in December, we are making changes to our parcels range. The updated parcel services for consumers, and business customers paying with stamps, smartstamp, online postage and franking, are designed to be easier to understand and improve choice.

From Tuesday 2 April, customers will have the ability for the first time to send parcels between 1kg and 20kg using our Second Class service, with the added option to receive a signature on delivery.

We believe the increase in Second Class weight limit to 20kg is a very meaningful addition to customer choice. As a result of this improvement, our Standard Parcel product will be withdrawn. In addition, the number of First Class weight bands for parcels will more than halve, from 15 currently, to seven.

We have also introducing two parcel categories – small parcels and medium parcels. We previously priced by weight only.

The size of a parcel has a bearing on the cost of collecting, transporting, sorting and delivering an item and this will now be reflected in the price. This will bring us in line with other major postal operators, for example, in Germany, France and Italy.

[FairyFoot]

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I am happy this time. Surprised though, current upto 40g worldwide airmail letter is £1.90 - new rate will be £1.88 !

[mediamonkey]

Anyone sending lots of parcels won't be happy though. New minimum weight step is 1kg, and unless your parcel counts as a "small parcel" it could cost £5.65 to send what would be £2.70 right now.

[cyclemech1]

I think RM have shot themselves in the foot here.

Most ebay parcels are going to fall in the 'medium parcel' category costing £5.65 whereas, as has been mentioned, it is now £2.70 (dependent on weight).

Also. unless you opt for one of the 'Guaranteed' services, the compensation limit will only be £20.

Compare this to Collect+, operating from corner shops, where you would pay £3.99 for a jiffy bag or £4.99 for a medium parcel (again dependent on weight) and both offer tracking as standard and compensation of £50.

Ebay will be comparing postage prices when you opt for printing the postage label so I think that RM will be losing a lot of business here.

Another short sighted decision by incompetant management!

[newsubbie]

most post offices are starting to realise that we're in serious trouble thanks to this new pricing. Our volume is going to collapse.

[UnhappyGremlin]

It's almost like RM is trying to deliberately run the business down.....

Can't think why.