dma and royal mail accord on business pricing

01 October 1997

AT A TOP LEVEL MEETING between the DMA, Royal Mail and the Mail Users Association agreement was reached on a number of controversial issues surrounding the RM’s Business Pricing proposals. A mechanism for resolving the remaining differences was also agreed. The DMA and MUA welcomed four elements of the revised Business Pricing proposals: the recently introduced Cleanmail and Mailsort 120 products, the pricing of contract mail on a ‘per thousand’ basis, and new sales promotion initiatives. It was also agreed to hold a joint strategy meeting to determine how Business Pricing can be implemented to the joint benefit of all concerned. But according to DMA chief executive Colin Lloyd: ‘Some issues between Royal Mail and large mailers remain. However, we are pleased to continue consultations, and that we have started to identify a way forward. We will meet again in December to review the position in the light of feedback from customers.’ John Tew, director and general manager of the RM’s business unit for large customers, welcomed the opportunity of ‘future discussions on how price per thousand can be best used to maximise pricing flexibility for business users’. MUA chair Dave Thomas (Reader’s Digest) also conceded that ‘differences still remain’. The accord follows a period of ritual posturing on all sides with the trade press used as a public go-between in the row.