we are all enjoying the August holiday break the most far
reaching shake up in postal services for half a century
will take place.
PIP (Pricing in Proportion).
is Pricing in Proportion?
Currently, the cost of sending mail is based purely on
the weight of the item being sent. When Pricing in Proportion
is introduced, you will also need to take the size, length
and thickness of the item into account when considering
the cost of postage. The key principle of this new system
is that smaller, lighter items will cost less to send
than larger, heavier ones.
When is Pricing in Proportion being introduced?
This new concept is being introduced by the Royal Mail
on Monday August 21st 2006 and will affect everyone who
Why the change?
It costs Royal Mail more to sort, handle and deliver larger
envelopes and items than they are currently charging customers
to send. Large and irregular shaped packages take up more
space in postbags and vans and cost more to handle. This
means that most light but bulky items are priced below
cost, whereas smaller, heavier items are generally overpriced.
Royal Mail is changing their pricing system to more accurately
reflect their costs.
Who will be affected?
All Royal Mail customers will be affected, but Royal Mail
estimate that over 70% of mail will not change in price.
Monday 21st August 2006 mail will fall into 3 categories:
- Includes items slightly bigger than A5, half the size
Large Letters - Larger envelopes up to slightly
bigger than A4 size.
Packets - Anything else outside of these boundaries.
the first time royal mail pricing will not only be governed
by weight but also by size. You will mainly be able to
tell which category your mail is in by the size of the
envelope, but you will also need to consider the item's
thickness and weight.
in Proportion will mean changes to your daily routine
as mail will need to be sorted into 3 categories; Letter,
Large Letter, Packet.
less than 50 days to the changeover AMC advise all businesses
to review their current mail formats as there will be
opportunities to change the way that you do business and
ultimately make cost savings.