Royal Mail has scrapped its controversial price rises for wholesale customers – which would have seen the cost of some letters soar by up to 36% – but is now planning a new set of lower increases, which are due to take effect from December 7.
The original price hikes, scheduled for October, caused uproar among Royal Mail’s bulk mail customers, such as UK Mail, Whistl and Citipost, who specialise in sorting and processing mail before handing it to Royal Mail for the final mile delivery.
Last month, the postal operator was forced to suspend the increases after regulator Ofcom agreed to step in and resolve the dispute.
But Royal Mail has now withdrawn those original proposals completely and announced a new set of revised, lower increases instead. Even so, there are still some significant changes, with Business Mail set to rise by an average increase of 19.4% (down from the 30.7% originally proposed); Business Mail Standard to go up by 15% (down from 19%; Business Mail Economy to rise by 21% (down from 36%); and Advertising Mail to increase by 12%
According to Royal Mail, the revised prices take into account some of the concerns raised about the original increases, but insists they are still necessary as the number of letters being sent continues to fall, while the cost of maintaining a nationwide postal service remains high.
The revised prices are due to come into effect from December 7 but, with the original dispute still being considered by Ofcom and concerns remaining across the industry, it is possible this may not be the final development.
In a blogpost, Paragon Print UK stated: “Although the revised increases are lower than those originally proposed, postage is still going to become more expensive for many businesses. This makes planning your mailings carefully more important than ever.
“Simple steps such as cleaning your mailing data before sending a campaign can help prevent money being spent on duplicate records, people who have moved address or customers who are no longer contactable.”
“It is also worth looking at the postal service you use, the format and weight of your mail, and whether your campaign could qualify for any available Royal Mail incentives.”
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