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Business mailers face price hikes of up to 20%

22 Feb 2012 12:26 GMT Back
Business mailers face price hikes of up to 20%
Royal Mail postbox

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Royal Mail has just announced its proposed new contract prices, due to come into effect on 2 April 2012. 

If approved by Ofcom, these new prices will see business mail prices rise by 8-20% while direct mail prices will increase by 1-5%. All these prices exclude VAT which will be applied to all bulk mail services with effect from 2 April 2012.

“No price increase is welcome, especially when some users already going to see a 20% increase because of the impact of VAT,” says chief of operations at the DMA, Mike Lordan. 

Royal Mail is also introducing some additional new advertising mail products:

  • An unsorted option that will be suitable for smaller volume mailings that wouldn’t qualify for volume discounts
  • A machine readable large letter format with the option for polywrap, enabling catalogues and large format acquisition mailings to qualify for advertising mail discounts
  • A packet format that will allow 3D direct mail to qualify for advertising mail discounts.

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

Full details and a downloadable price guide are available here.

Posted by

Smarayda Christoforou

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