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Tuesday August 22nd 2006

Chaos - No sign of it as new pricing structure launches.

Archived article dated Tuesday August 22nd 2006

Royal Mail said today there was no sign of the “chaos” some had forecast over the introduction of new postage pricing changes.

Lorna Clarkson, Royal Mail's Director of Pricing, said reports from Post Office branches around the UK consistently showed customers managing the changes with no difficulties getting information about the new prices.

“Customers are managing these changes extremely well, along with Post Office counter clerks and Royal Mail's operational people. All the indications we've had show that Post Office branches are equipped with leaflets, posters and templates, and the vast majority of customers are being served at counter positions well within five minutes in even the busiest and largest branches,” said Miss Clarkson. “This is turning out to be a typical day in Post Office branches. There is no sign at all of the 'chaos' some predicted! I am very confident that customers will quickly get used to the new pricing structure and we're grateful for the way they have been taking the time to read the information we've distributed. All the signs are that Royal Mail's £10 million communications plan is working with the messages about the changes getting through via the widespread advertising we've undertaken and the leaflet delivered to the UK's 27 million addresses.

“Of course, we are not complacent and recognise that we are making significant changes. We will take all the time they need to explain these changes. But every indication we have had - from Post Office branches and our customer call centres - show that most people are aware of the changes. Royal Mail remains very determined to do everything we can to help all our customers understand and know about these changes.”

The new pricing structure means that postage is now being calculated on both the size and weight of the item instead of the old system based on weight alone.

Royal Mail will not gain any extra revenue from the changes. The postage for 80% of the mail will remain the same, with the main impact of the changes being that lighter, bulkier items will cost more and heavier, compact items will cost less.

Business customers, who post more than 90% of all mail, will find that two thirds of the mail they post will be cheaper. And small businesses who use franking machines or Printed Postage Impression (PPI) envelopes are getting a further 1p discount on their basic First and Second Class mail - a £30 million benefit.


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