Vat changes to some post services 2nd April

marie-20

I've received 2 - 1st one telling me that the prices will change in April and they will contact us closer to the time and then one yesterday saying that they will be releasing the pricing mid-March.

custardy

ludovico wrote: »

VAT isn't the problem, the large price increase is along with cutting compo is.

Wouldn't mind if it was a level playing field but companies like Amazon have the power to get big discounts with threats of pulling custom whilst the rest of us pay more for less.

isnt that what opening the mail market was all about?

the_lunatic_is_in_my_head

custardy wrote: »

isnt that what opening the mail market was all about?

Indeed but RM propose to offer a business account with no discount that does not attract VAT, I would guess it will be more than the net Packetpost rate but less than the PO rate basically meaning they get more margin for the same service.

How is that level? Can TNT or indeed any other type of company, offer a VAT free service/product to a customer who isn't VAT registered whilst undercutting the competition but making a higher margin?

Business customer posting in volume do not qualify for compensation but a personal customer does? Granted they pay more per parcel but us businesses are putting far more money in RM's pocket overall.

The current price increases seem to be hitting lighter parcels hard and consumers will only pay so much for an item so either they don't buy online and RM loses out or they buy from big companies bullying their way to cut throat prices and us small businesses suffer.

I keep reading that as technology advances people use the post less, but the massive boom in online retailing must make up for this especially as standard letters are run at a loss and I assume parcels aren't.

So Royal Mail get less loss making mail, more profit making mail but are still bleating on about how hard done by they are?

custardy

ludovico wrote: »

Indeed but RM propose to offer a business account with no discount that does not attract VAT, I would guess it will be more than the net Packetpost rate but less than the PO rate basically meaning they get more margin for the same service.

How is that level? Can TNT or indeed any other type of company, offer a VAT free service/product to a customer who isn't VAT registered whilst undercutting the competition but making a higher margin?

Business customer posting in volume do not qualify for compensation but a personal customer does? Granted they pay more per parcel but us businesses are putting far more money in RM's pocket overall.

The current price increases seem to be hitting lighter parcels hard and consumers will only pay so much for an item so either they don't buy online and RM loses out or they buy from big companies bullying their way to cut throat prices and us small businesses suffer.

I keep reading that as technology advances people use the post less, but the massive boom in online retailing must make up for this especially as standard letters are run at a loss and I assume parcels aren't.

So Royal Mail get less loss making mail, more profit making mail but are still bleating on about how hard done by they are?

and what about down stream access packets?
Im not defending RM,but realistically what did people think was coming?

the_lunatic_is_in_my_head

I assume down stream access packets are those from other companies given to Royal Mail for the end of the journey? If so why don't RM charge more for that service? And what are RM making from the amount of junk mail the postman pushes through my letter box every time I get a letter?

custardy

ludovico wrote: »

I assume down stream access packets are those from other companies given to Royal Mail for the end of the journey? If so why don't RM charge more for that service? And what are RM making from the amount of junk mail the postman pushes through my letter box every time I get a letter?

what junk mail? you mean anaddressed mail you can simply opt out of?
DSA prices are set by the regulators.so how would they raise those?
its an open market dont you know

the_lunatic_is_in_my_head

DSA prices are set by the regulators.so how would they raise those?

So the regulator is at fault rather than the customers now paying for this?

RE junk mail I'm referring to the Pizza Hut menu, Virgin Media ad and 'Important Water Information' that came through the door with my post yesterday, none of which is addressed.

custardy

ludovico wrote: »

DSA prices are set by the regulators.so how would they raise those?

So the regulator is at fault rather than the customers now paying for this?

RE junk mail I'm referring to the Pizza Hut menu, Virgin Media ad and 'Important Water Information' that came through the door with my post yesterday, none of which is addressed.

which you can opt out off
I can recall the prices but I know it rose in April
Its a growth market for RM



you have a very narrow viewpoint.
do really see rasing DSA prices as an answer to fragmented mail service providing discount prices to its rivals?

the_lunatic_is_in_my_head

Its a growth market for RM

Good for them and I don't object at all but if they are making money from new ideas some of that profit can be used to off-set against a loss making aspect of their business. The letters being posted (at a loss) allow the junk mail to go with it. I would be annoyed if I got junk mail from the postman and no actual post.

you have a very narrow viewpoint.
do really see rasing DSA prices as an answer to fragmented mail service providing discount prices to its rivals?

I would say I'm ignorant rather than narrow minded as I'm not fully aware of RM's internal procedures. Above you appeared to imply DSA was bad for RM, if so why is it bad and what is the possible solution? To stop it completely?

custardy

ludovico wrote: »

Its a growth market for RM

Good for them and I don't object at all but if they are making money from new ideas some of that profit can be used to off-set against a loss making aspect of their business. The letters being posted (at a loss) allow the junk mail to go with it. I would be annoyed if I got junk mail from the postman and no actual post.

you have a very narrow viewpoint.
do really see rasing DSA prices as an answer to fragmented mail service providing discount prices to its rivals?

I would say I'm ignorant rather than narrow minded as I'm not fully aware of RM's internal procedures. Above you appeared to imply DSA was bad for RM, if so why is it bad and what is the possible solution? To stop it completely?

sigh,sorry but you are about 10 years behind
why is DSA bad?
well RM gets paid less and still has to do the most expensive part of delivery
every letter sent via DSA used to get sent via RM exclusivly
look at the letters you get tnt post,UK mail,secure mail etc
all of these are DSA
you cant stop DSA.
to stop DSA means closing the market