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Vat changes to some post services 2nd April

13

Comments

  • Right so they can't close DSA off but it's expensive for what they get paid so why isn't raising the price (on the assumption they'd be allowed to if they become unregulated) the answer? As I say what is the solution?
    In the game of chess you can never let your adversary see your pieces
  • custardy
    custardy Posts: 38,365 Forumite
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    ludovico wrote: »
    Right so they can't close DSA off but it's expensive for what they get paid so why isn't raising the price (on the assumption they'd be allowed to if they become unregulated) the answer? As I say what is the solution?

    the solution isnt easy
    this was all set up 10 years ago with the opening of the market(long before we had to and long before RM had time to even be ready)
    DSA was to balance RM having a ready made infrastructure
    so if you remove DSA,how do you blanace that for the other companies?
    how do you see them making a profit with deliveries?
  • F&L
    F&L Posts: 570 Forumite
    ludovico wrote: »
    VAT isn't the problem, the large price increase is along with cutting compo is.
    For anyone like me who has a PPI business account and can't now claim for lost items this may be of interest http://www.royalmailgroup.com/sites/default/files/Single%20Piece%20on%20Account.pdf

    As far as I can see it should come into effect in April and the rates seem the same except there's no VAT and you can claim for losses? I don't normally claim for the odd lost packet but I think I've now got a lost bag situation with several buyers saying items haven't arrived and I now can't claim for any of them!
  • plumface
    plumface Posts: 506 Forumite
    That document really clears it up,thanks. :T

    Why couldn't the RM put that in their pdf?
    It seems that unless you are vat registered and your Packetpost average weight is always over 750g and you sell in such volume that you have a collection service then Packetpost is not worth it.
    The new account looks interesting though.You can still use your PPI labels,bag the packets and drop off at the PO and be able to claim compo' should you need to.
    Just have to wait now and see how much the price increase will be on this new account. :mad:
    :beer:
    Lose is to not win......Loose is not tight......get it right!
  • the_lunatic_is_in_my_head
    the_lunatic_is_in_my_head Posts: 9,603 Forumite
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    edited 24 February 2012 at 9:57AM
    F&L wrote: »
    For anyone like me who has a PPI business account and can't now claim for lost items this may be of interest http://www.royalmailgroup.com/sites/default/files/Single%20Piece%20on%20Account.pdf

    As far as I can see it should come into effect in April and the rates seem the same except there's no VAT and you can claim for losses? I don't normally claim for the odd lost packet but I think I've now got a lost bag situation with several buyers saying items haven't arrived and I now can't claim for any of them!

    If approved by the regulator the prices will start at those shown but will then increase at the same rate as all the other increases. I guess it will be below the PO counter rate but above the net packetpost rate so if you are VAT registered it will cost more plus it's limited to under 5000 items a year.

    how do you see them making a profit with deliveries?

    Perhaps the other companies should have to make contributions towards maintaining the infrastructure they want access to?

    Why couldn't the RM put that in their pdf?

    They did.
    In the game of chess you can never let your adversary see your pieces
  • custardy
    custardy Posts: 38,365 Forumite
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    ludovico wrote: »
    If approved by the regulator the prices will start at those shown but will then increase at the same rate as all the other increases. I guess it will be below the PO counter rate but above the net packetpost rate so if you are VAT registered it will cost more plus it's limited to under 5000 items a year.

    how do you see them making a profit with deliveries?

    Perhaps the other companies should have to make contributions towards maintaining the infrastructure they want access to?

    Why couldn't the RM put that in their pdf?

    They did.

    RM supply the DSA compaines with trays,york trollies etc
    DSA companies have no interest in paying in(and I don't actually blame them for capatalising on the system created for them)
    That tune may change when the RM network is carved up
  • DSA companies have no interest in paying in

    Of course they don't! If RM had the permission to charge for things like the trays and trolleys as well as contributions towards maintaining things suchs as the postman's bikes, trolleys, uniforms, the cost of running the buildings, vans, etc, etc then they'd be on more of a level footing.

    That tune may change when the RM network is carved up

    How do you mean carved up?
    In the game of chess you can never let your adversary see your pieces
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ludovico wrote: »
    DSA companies have no interest in paying in

    Of course they don't! If RM had the permission to charge for things like the trays and trolleys as well as contributions towards maintaining things suchs as the postman's bikes, trolleys, uniforms, the cost of running the buildings, vans, etc, etc then they'd be on more of a level footing.

    That tune may change when the RM network is carved up

    How do you mean carved up?

    I mean the network will be carved up
    you had the GPO
    then you have RM,BT,Open reach etc
    now you will have mail logistics,Post offces,RM letters,RM mail centres
    this will be carved up and privitised in some !!!!!!!ised deal

    as for DSA paying in. the whole point of DSA is because the playing field isnt level
    how could a company compete with RM without mail centres,delivery offices etc?
    whats the point of having DSA if they are then paying into the running of RM as well?
  • whats the point of having DSA if they are then paying into the running of RM as well?

    Well they'd have to pay for all that stuff if they wanted to do it by themselves. If for say letters, Royal Mail do these at a loss and there's no point charging at cost as it will be more than the companies mailing stuff would pay with RM direct then it's only fair that they contribute to the services they have access to at such a reduced price. What other business woud offer a service at a loss and ask for nothing else in return. It's not RM's fault UKMail can't implement their own network.
    In the game of chess you can never let your adversary see your pieces
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ludovico wrote: »
    whats the point of having DSA if they are then paying into the running of RM as well?

    Well they'd have to pay for all that stuff if they wanted to do it by themselves. If for say letters, Royal Mail do these at a loss and there's no point charging at cost as it will be more than the companies mailing stuff would pay with RM direct then it's only fair that they contribute to the services they have access to at such a reduced price. What other business woud offer a service at a loss and ask for nothing else in return. It's not RM's fault UKMail can't implement their own network.

    Fair? oh now you are just being silly ;)
    this happened 10 years ago
    DSA was brought in
    RM werent ready,the original remit of DSA was to allow competitors to come in and get established
    open up the market
    create competition and choice
    competitors were to provide an equivelent service and not cherry pick the profitable parts
    however thats exactly what happened
    how much profit is in delivering a letter to Mrs cTavish who lives 20 miles from her neighbour?
    and theres the issue. mail delivery simply isnt profitable in its present forim
    privitisation is a done deal
    stripping down RM and the service makes it easy.
    how many times have people said they cant wait for RM to be privitised to 'improve' the service
    the reality is they have no idea what goes on
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