What Impact will Privatisation have on Post Offices

[Fsghazi]

Hi,

Can someone please guide me, I would like to know what kind of impact Royal Mails privatisation will have on Post Offices.

I am really concerned as I have recently purchased a post office and I don't know if I have done the right thing.

I would really value an honest opinion...

Regards

[TrueBlueTerrier]

Split and started new thread - its an interesting subject in its own right/

To add my tuppence worth although it will be hard work I think generally POs will be OK but don't expect to make a killing on it.

ATM the POCA is under threat as that I think is up for Tender again. On its own it'll be a major problem but if worse the contract is passed to another firm it will be a good indication of whether this coalition is all talk and no action, or whether it will keeps its promise to protect POs.

After privatisation I think there are 2 big things you will need to keep an eye on:

1. Business Agreement between RM and PO, if that is not enshrined in the act then expect RM to go looking for cheaper outlets.
2. Transaction payments - obviously when we are privatised RM will try to get as much as possible as cheaply as possible to the payment per transaction will be under pressure.

[NWpostie]

If you are running a shop in conjunction with a PO, perhaps diversifying your products within the shop will help you to avoid putting all your eggs in one basket, you would then have something to fall back on, whichever way it goes.

[Mad Max]

I wouldn't touch a PO with a barge pole, too much uncertainty over a split with RM and the mails biz.

They can't turn a coin as it is

Sorry but just an honest opinion

[NWpostie]

Unfortunately he has already brought a Post office, it would have preferable to have done some research and even better come on this site before starting, he has to make the best of it, hence diversifying into other ways of making the shop viable, everybody need paper, food, drinks, paypoint, etc and build from that in passing trade.

[Mad Max]

If you decide to invest money in a PO (& the usual price is between 1 and 1 1/2 times the annual salary of the incumbent) then you should do some research.

Most PO's are lucky to break even as a stand alone business

[subbie]

The best advice I could give you is join the National Federation of Sub Postmasters, there is a lot going on within the Sub Office world regarding privatisation, and all the latest info on how the Bill might effect Postmasters will be found within the membership services that the Fed offer.

There would appear to be opportunity for Postmasters especially if Mutualisation is developed properly and not become some kind of fudge, so its currently not all doom and gloom for us, unlike how it must seem to anyone working for other parts of the Royal Mail Group.

Subbie