Royal Mail is arguing that sized-based pricing is fairer and more accurately reflects the cost of handling mail. "The current pricing structure has been around for decades and is inherited from a time when mail was hand sorted, and so is increasingly out of date," David Dale, Royal Mail head of sized-based pricing, said.
But as the consultation period began, the DMA struck back. "Direct mail makes up 20% of Royal Mail volume and the biggest growth for direct mail is large packs -- envelopes sized A4-plus. So it seems we're being penalised because Royal Mail hasn't invested in the right machines to handle these large envelopes," David Robottom, DMA director of postal affairs and industry development, said.
Robottom added if the Royal Mail's plans are approved, it will hit every aspect of the direct marketing industry, from home shopping to creative. "One problem is if you restrict the size of the mailing on which to promote your services, you restrict creativity," he said.
Even though other countries, including Ireland, Germany, Australia and the US, take into account the size of mailings in their prices, Robottom argued that size is not used as a key factor.
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