Postwatch, the watchdog for postal services, today opposed Royal Mail’s proposals for a new pricing system based on the size and thickness, as well as the weight of a letter or packet.
Having consulted with a range of postal users, Postwatch believes that the changes proposed by Royal Mail will not be in customers’ best interests and may actually have a negative impact on their use of mail.
Peter Carr, Chairman of Postwatch comments, “This is the tail wagging the dog. Royal Mail should be buying sortation machinery that processes the larger items that customers wish to send.
“They are trying to solve an internal investment problem by asking the customer to change to a new and complicated method of posting for the same items that they send today.
“Our consultations with domestic customers and business users show that they want to send letters and packages of all shapes and sizes and should not be penalised for doing so. To require someone to measure the thickness to within a few millimetres as well as the size and weight is an unnecessary complication”.
In its response to Royal Mail’s consultation, Postwatch highlights three major areas of concern in the proposals:
The change is complicated with great potential confusion for customers.
The new system would require customers to measure their mail against three separate criteria - two-dimensional size, thickness to within millimetres and the weight of the item. The current weight based system is well understood by customers. It will be an added complication to have to decide whether a packet is over 5mm thick or over 10mm thick.
The price impact.
Although Royal Mail have said their proposals will not increase their revenue, it is not clear what the exact price impact will be on different groups of customers. Postwatch is concerned that certain mailers will be disproportionately affected by the price changes and some business mailers will find their costs increasing steeply. More…
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The effect on the use of mail by some business users.
For some businesses such as direct mailers, the post is an integral part of their product or service. Postwatch is concerned that size based pricing would increase the price of larger, lightweight items which limits the options available to them, restricts their creativity and may encourage standardisation in the market. If, as a result, the success of mailings is diminished, companies may turn away from mail to other forms of marketing.
Postwatch is also concerned that Consignia appears to be introducing a number of different proposals, such as its Mailsort re-engineering initiative, without considering the implications they will have on each other.
Peter Carr continues, “We will be petitioning both Consignia and the Regulator to try to ensure that these proposals do not go ahead in their current form”.
