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MSE News: Stamp prices could rise as Ofcom proposes Royal Mail shake-up

This is the discussion thread for the following MSE News Story:

"Regulator Ofcom has announced plans which would enable Royal Mail to set its own prices for the majority of its products ..."
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Comments

  • WestonDave
    WestonDave Posts: 5,154 Forumite
    Rampant Recycler
    The elephant in the room is the Universal Service Obligation - most residential addresses would not suffer unduly if this was cut to every other day Monday to Saturday. What this would mean in practice is that people might have to wait one extra day for their post (albeit that anyone sending anything time critical could still pay for special delivery etc which could be done as a special round by van etc). However from the Royal Mail perspective it would eliminate a lot of pointless pavement pounding, and could effectively halve the delivery workforce. At present it tries to cover the daily round costs by offering massively subsidised junk mail rates - around 2p per item rather than 36p for second class addressed mail! - but if rounds were cut back to every other day this junk mail could be dropped leaving posties with room to carry two days mail on their round.

    The current stubborn strategy of insisting that we have to have deliveries every day, and trying to facilitate this by chasing falling volumes with prices rises simply can't work in the long run. Everytime they put the prices up to cover the costs of lower volumes, more people decide to switch to paperless billing, so volumes fall further, prices rise and the whole thing continues a downward spiral! For those people who rely on "snail mail" it would be more effective to reduce frequencies and lower prices.
    Adventure before Dementia!
  • ehlo
    ehlo Posts: 397 Forumite
    Part of the Furniture 100 Posts
    My house will frequently get no deliveries for a few days and then a whole load at once (postmark date clearly show these should have been delivered earlier)

    Perhaps Royal Mail should give me a discount :rotfl:
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ehlo wrote: »
    My house will frequently get no deliveries for a few days and then a whole load at once (postmark date clearly show these should have been delivered earlier)

    Perhaps Royal Mail should give me a discount :rotfl:

    the postmark shows nothing of the sort
    staffing in mail centres have changed
    Sunday,Monday & Tuesday are light days for staffing
    hence a general flood of mail for the rest of the week
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    WestonDave wrote: »
    The elephant in the room is the Universal Service Obligation - most residential addresses would not suffer unduly if this was cut to every other day Monday to Saturday. What this would mean in practice is that people might have to wait one extra day for their post (albeit that anyone sending anything time critical could still pay for special delivery etc which could be done as a special round by van etc). However from the Royal Mail perspective it would eliminate a lot of pointless pavement pounding, and could effectively halve the delivery workforce. At present it tries to cover the daily round costs by offering massively subsidised junk mail rates - around 2p per item rather than 36p for second class addressed mail! - but if rounds were cut back to every other day this junk mail could be dropped leaving posties with room to carry two days mail on their round.

    The current stubborn strategy of insisting that we have to have deliveries every day, and trying to facilitate this by chasing falling volumes with prices rises simply can't work in the long run. Everytime they put the prices up to cover the costs of lower volumes, more people decide to switch to paperless billing, so volumes fall further, prices rise and the whole thing continues a downward spiral! For those people who rely on "snail mail" it would be more effective to reduce frequencies and lower prices.

    the EU demand a basic mail service with USO (IIRC)
    hence the 2nd class standard letter price being left alone

    its nice you see 10'000s of people losing their jobs as the solution
    don't buy into those falling mail volumes storys
    mail has changed for sure but posties are still taking out full bags
    of course its now more direct marketing mail and bumph.
    RM use set figures for measuring mail.
    eg 250 letters per machine prepped trays
    any office that has done a manual count has found this figure can be more like 350-400 a tray
    doesnt take a genius to see the effect that has on figures

    where did you get the 2p rate from?
  • WestonDave wrote: »

    The current stubborn strategy of insisting that we have to have deliveries every day, and trying to facilitate this by chasing falling volumes with prices rises simply can't work in the long run. Everytime they put the prices up to cover the costs of lower volumes, more people decide to switch to paperless billing, so volumes fall further, prices rise and the whole thing continues a downward spiral! For those people who rely on "snail mail" it would be more effective to reduce frequencies and lower prices.

    I have to agree, with the above, alternate days would be adequate for most people. I've reduced my use of the postal service purely because of the price rises.
  • corbyboy
    corbyboy Posts: 1,169 Forumite
    Part of the Furniture
    Trader1889 wrote: »
    I have to agree, with the above, alternate days would be adequate for most people. I've reduced my use of the postal service purely because of the price rises.

    On a similar note, do we need post delivered on Saturday and Monday? How much mail is sent and processed over the weekend?
  • KxMx
    KxMx Posts: 11,347 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 24 October 2011 at 1:28PM
    I would not be happy to get a delivery every other day, no way. I wouldn't like to lose a Saturday delivery either but would be willing to if that protected the Monday to Friday service.

    I think you'll find businesses would have something to say about alternate day delivery/ tues-fri only (which has to be the stupidest thing I have ever heard)
    Just because some people don't send/receive much, doesn't mean that applies to everyone.

    Of course, letter volumes have fallen, but I rather think with the internet packets and parcels have rocketed!
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    KxMx wrote: »
    I would not be happy to get a delivery every other day, no way. I wouldn't like to lose a Saturday delivery either but would be willing to if that protected the Monday to Friday service.

    Just because some people don't send/receive much, doesn't mean that applies to everyone.

    Of course, letter volumes have fallen, but I rather think with the internet packets and parcels have rocketed!

    packet traffic rises every year.
    this is the issue
    its easy to speak for yourself but this is an issue that concerns everyone in the UK
  • KxMx
    KxMx Posts: 11,347 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    custardy wrote: »
    packet traffic rises every year.
    this is the issue
    its easy to speak for yourself but this is an issue that concerns everyone in the UK


    Oh I know, which is why I would be willing to see high price rises to keep the service regular.

    Just giving my view as several others have done on this thread.
  • WestonDave
    WestonDave Posts: 5,154 Forumite
    Rampant Recycler
    The alternative to across the board price rises could be an enhanced service subscription (probably the norm for businesses).

    Apologies to custardy - old memory of sorting leaflets into bundles for door to door - current prices are around 5p per item unaddressed "junk" mail. I don't particularly relish shedding loads of jobs but sometimes life moves on - our railways for example no longer employ two people in the cab, one to drive and the other to shovel coal, because modern trains don't require that. In the same way with our communication networks, there is going to come a time when everyone effectively paying a tax just to keep posties in work shovelling junk mail through our doors will become unsustainable. Whether or not RM is fiddling the figures its presumably cast iron logic that if RM keep bumping up prices volumes will not rise! At some point this issue has to be addressed and we can't indefinitely keep kicking it down the road. Its also going to start coming to a point of conflict whereby councils who are facing increasing rubbish collection charges start getting antsy about RM adding to it!
    Adventure before Dementia!
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