Postal reforms will cut DM bills

Direct mail will become cheaper as a result of the government’s review of the Post Office.

Direct mail will become cheaper as a result of the government’s

review of the Post Office.



For every penny cut from costs, direct mail volumes rise by at least 70

million items, with expenditure up by pounds 30m. Last year 3.42 billion

items of direct mail were carried, with expenditure of pounds 1.54

billion.



Peter Mandelson, secretary of state for trade and industry, said in a

statement this week: ’The Post Office will be given the freedom to price

flexibly for volume users.’ This means that the Mailsort rate, the

discount postage charge for direct mailers, may fall further.



The Post Office will also be given the freedom to compete beyond its

traditional areas, probably list broking, data and mailing print and

production, leading to a further reduction in costs for users.



It is already competing in the telemarketing arena using SSL, the Post

Office subsidiary that collects the TV Licence fee.



The new regime will be overseen by a regulator, OfPost. Until then,

pricing and competition will be controlled by the DTI. A group of direct

mail companies, led by WWAV Rapp Collins, maintains that the DTI is

biased and is setting up its own regulator.



WWAV’s chairman, John Watson, said: ’There is still a void and so we

intend to go ahead with our plans to appoint a watchdog. A shortlist of

candidates has been drawn up and a fighting fund established.’



Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message