Wednesday, 22 February 2012

Pricing in Proportion

The Royal Mail have changed the way that mail is priced by introducing a new pricing system called Pricing in Proportion. Previously, postage prices were based upon the weight of the item. The heavier the item, the higher the price. Pricing in Proportion also takes into consideration the physical size and thickness of the item, as well as the weight.

What services are affected by Pricing in Proportion?
  • First & Second Class (Stamps / PPI / Meters / Response Services)
  • Packetpost
  • Packetsort 8 and Flatsort 8
  • Mailsort 1400 and Flatsort 1400
  • Presstream and Walksort

What services are partly affected by Pricing in Proportion?

  • Door to Door will take an element of PiP format into account
  • Cleanmail, Mailsort 120 and 700 have some price decreases

What services are not affected by Pricing in Proportion?

  • Special Delivery
  • Mail Media
  • Items weighing over 1kg
  • International Contract Services

How can I benefit?

In general, you pay the same or less for small items of post and more for larger items.

Royal Mail has simplified the pricing structure, so there are now only 10 price bands instead of 16.

Make the most of your mail!

With the new increased weight band for mail, you can now say more for less!

Take advantage and make the most of your envelope! Include extra promotional material, product information, new services and special offers to customers with your standard letters and mail shots.

You can fit approximately 12 pieces of standard A4 paper, folded in half, into a C5 envelope and still qualify for the ‘Letter’ category, sent at 32p stamped mail.

Re-design material and benefit from lower costs:

  • 1st class weight limits have increased to 100g for standard prices – Extra 40g.
  • 2nd class prices now include items weighing up to 1kg – Extra 250g.

Reduce the size, Reduce the price!

Under the Pricing in Proportion guidelines, the smaller the size of the letter, the less it costs to send!

By folding your A4 letter in half and using a smaller envelope, you save 12p on stamped postage or 14p on franked mail per letter (under 100g).

Example of how to save £’s by reducing the size:

  1. A4 letter standard size (under 100g) - classed as ‘Large Letter’ – Costs 44p 1st class, 37p 2nd class.
  2. Fold that letter in half – falls into category below, classed as ‘Letter’ – Costs 32p 1st class, 23p 2nd class.
  3. Saving of 12p on 1st class and 14p on 2nd class stamped mail.

Some business customers may want to invest in systems which will fold mailings and insert them into smaller envelopes. Mail items now qualify for the category below and are now classed as ‘Letter’. You can now benefit from the basic letter price of 30p 1st class and 21p 2nd class for franked mail by qualifying for the category size below. By taking advantage of total mailing systems; time, money and labour costs will be dramatically reduced.

See how Much you Can Save - Automate your Mail Processing

The savings table below compares sending C4 envelopes (A4 standard letter size) priced as 2nd class stamped mail (23p) with C5 envelopes (A4 standard letter size, folded in 1/2) priced as 2nd class franked mail (21p).

Items Sent Per Day 50 100 250 500
Total Annual Saving £2,000 £4,000 £10,000 £20,000

Fold letters in half to save over 30% on first class mail

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