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How can it affect me?
Pricing in Proportion will mean changes to your daily routine. Mail now needs to be sorted into 3 categories; Letters, Large Letters and Packets.
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 items thickness and weight.
This useful diagram below highlights the differences between the current pricing system and the new Pricing in Proportion system.
What’s the difference between Letters, Large Letters and Packets?
Letters represent approximately 70% of total mail and the maximum size is slightly bigger than A5.
Large Letters represent approximately 20% of total mail and the maximum size will be an A4 unfolded sheet of paper.
Packets represent approximately 4% of total mail and will include anything else that doesn’t fit into the above categories.
How can the changes affect you?
- You will now have to consider the length, WIDTH, depth and weight of your mail and find out which category it falls into to price your item for posting.
- There is more to consider when choosing Birthday cards – larger cards will cost more to send, even if they are light items.
- Your queuing time at the Post Office could increase until customers become used to the new concept.
How can the changes affect your business?
- The mail run may become slower as items are sorted into posting categories and length, WIDTH, depth and weight are all checked to ensure correct postage is applied.
- There could be an increase or decrease in your postage costs, depending on the type of mail you normally send.
- You may consider investing in new equipment, such as a folder inserter system or dynamic scales to help automate the process.
- Promotional material and direct mail may need to be re-designed to take advantage of the lower price bands.
- New postage rates will be required for your franking machine. You may also need to upgrade your scales.
- You could experience possible labour and time increases (if not investing in equipment) as sorting and measuring of the post will now be required until the Pricing in Proportion concept is fully understood by your business.
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