clashcityrocker wrote:Letters are terminally in decline. They have been for years.
There was a time when everyone got quarterly bank statements, a quarterly phone bill, a quarterly electricity bill, a quarterly gas bill, a credit card bill and they paid for everything by cheque. Those days are not coming back.
realising this RM sold off half of their mail centres and got rid of 1000s of staff.
We now no longer have the capability to do all the work.
I doubt RM are going to invest billions in a dying mail stream.
But maybe they will?
According to the business the lockdown period saw substantial packets being delivered and fewer letters...but less profits?? I know covid19 has thrown a curve ball to the company but its obvious to me (and I repeat) that we only seem to profit right now
when we deliver the parcels with the letters. It doesn't take an Einstein to realise that there has been a trend in letter decline. I'm a glass half full sort of a guy and predict that letters will pick up as businesses start to open up in July and we may get a bit of Autumn pressure.
Its fair to say that RM have also been aggressively pursuing the decline of our own letters business for years because deregulation back in 2000 has enabled many DSA providers to come in and cream our profits. This is work that we used to process which has been taken away from us and still we are forced to deliver letters 6 days a week via our USO. Someone on another thread suggested that RM should focus on trying to change DSA companies getting their hands on our business rather than on devaluing the USO, and that makes a lot of sense as it would help keep our jobs. Its one key way of trying to make our letter business more profitable. Will it happen or is there a workaround? Whatever it is, we need to find it.
Investing billions into these parcel hubs and parcel automation is quite high risk if we don't have the necessary capital to do it. Amazon have literally got billions to spare and its the reason why they established a UK delivery network as quick as they have; they really don't need to get involved in letters. Whether we like it or not, our USP over all these couriers is our letters. We may not be able to reverse the trend, but we should at least try and change the regulation. Our government aren't that daft - they know companies like Amazon should be paying hell of a lot more tax as well.
On the face of it, shareholder value is the dumbest idea in the world.