Royal Mail to initiate special direct mail tariff

01 June 1997

A BUSINESS PRICING STRUCTURE for direct mail will be introduced by the Royal Mail this autumn as predicted. The long-awaited decision, which follows intense pressure from the DMA and large mail users, was announced by Post Office chief executive John Roberts at the Institute of Direct Marketing Symposium earlier this month. However, his lips were zipped as to details which will not be unveiled until later in the year. Roberts also predicted growth of 20% over the next five years, which 'depends on our ability to maintain the competitive advantages of direct mail against other media'. Incremental direct mail revenues of £300m are expected from the ad sector over the next four years, encouraged by a range of sales promotions targeting specific industry segments. Roberts also announced 'a new series of products extending our work-share process into small-to-medium size enterprises' [presumably discounts for pre-sortation and presentation of mail]. This could include a form of 'inland consolidation'.