Royal Mail looks to placate marketers after price hike

[TrueBlueTerrier]

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Royal Mail is to the hike the price it charges for handling direct mail by up to 7% from April.

The price of large letter DM is set to rise between 4 and 7% but the postal operator insists that most increases will be below 5% and some under 1%.

Royal Mail has changed the conditions of its Advertising Mail service, which offers companies financial incentives to use DM, in a bid to placate direct marketers bristling over rising costs.

Changes include introducing a packet format that would allow 3D mail to qualify for Advertising Mail discounts and a machine readable large letter format, with the option to use polywrap, that could lead to cheaper prices for sending catalogues.

The additional products were welcomed by the Direct Marketing Association as mitigation for the increased prices.

Chief of operations for the DMA, Mike Lordan, says: “We are pleased that Royal Mail acknowledges the importance of direct mail and is keeping increases for advertising mail to a minimum. We also welcome the introduction of new products that will allow more direct mail to qualify for the advertising mail discounts.”

Companies have expressed concern over rising costs. Nationwide is accelerating efforts to move away from using mail because of rising prices.

The prices could change once Ofcom has delivered its conclusions on the regulation of Royal Mail, also expected in April. The watchdog, which assumed oversight of postal services last year, proposes restrictions on what Royal Mail can charge for services should be removed, leaving it free to set its own prices.

[oypostie]

a machine readable large letter format,

Which would be great if they ever put any flats through the machines rather than sending them out for manual sortin. Are you listening JMC