stevewinn, on 07 December 2012 - 12:13 PM, said:
i know i go on about the EU - and this is related, when the EU ruled that the Royal Mail had to open up its profitable side of the business to competition - the likes of DHL, TNT, UPS, UK Mail muscled in and creamed off the most profitable sectors, meanwhile the royal mail has to cope with a national delivery service. unlike the other companies. example of this. if i want to send a letter to the Shetland islands it will cost me £0.60p with the Royal Mail. with the other postal services it costs between £2.80p to £3.40 - if we use TNT as a example, it would cost £3.40. but TNT will only transport the letter to their furthest depot. which is Aberdeen from that point TNT will then post the same letter into the Royal Mail system who will then deliver the letter, it will cost TNT £0.60p to do this - but this means TNT make a profit of £2.80p. - but this is what people forget, unlike TNT and others the Royal mail has to maintain a fleet of vehicles and networks to the far flung corners and rural parts of the country and this is where the Royal Mail loses out, because the likes of TNT, DHL etc dont have to maintain a fleet of vehicles and networks to the none profit elements of the postal service and this puts the Royal Mail at a disadvantage.
Sounds like a no-win situation for the RM... If they up the cost of multi-company mail (mail that goes by another carrier then by the RM) the other carrier will just pass the cost on to the customer.. Not sure what they should do...
We are facing a similar problem here in the states.. The US Mail is laying off people and downsizing offices just to stay in business... I know a lot of younger people around here are basically saying "So what?" I always use ____ (UPS, FEDEX, DHL whatever)... I for one will miss the Post Office, with all it's 'warts and blemishes' when it eventually dies...