Plans to allow Royal mail to set the price of stamps could lead to a boon for direct mailing campaigns, a newspaper report has claimed.
According to an expert quoted in the Daily Telegraph, if the postal service gains control of regulations covering franked letters and bulk business mail, such a move would have an impact on mailing campaigns. This is because Royal Mail is likely to cut business mailing costs to attract business.
Ian Senior, a postal economist, said that postal reforms could be great: “I think it would have an impact on direct marketing because it is all about trying to keep costs down.
“If the cost goes down by one or two pence per item, then the volume could go up.”
In addition, he accused Royal Mail of “scaremongering” about the changes it faces.
However, a Direct Marketing Association spokesman was more cautious: “If prices fall, it is possible that the Royal Mail will get a bigger market share of direct marketing, but it doesn’t mean that the volume will go up.”