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| What is Pricing in Proportion? |
| Pricing in Proportion is a way of pricing mail on the basis of its size as well as its weight, as this reflects the true costs of handling letters and larger items. You now need to review the way in which your mail is prepared and sent as pricing now takes into consideration the physical size and thickness of the item, as well as the weight. |
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| How does Pricing in Proportion work? |
The price of mail is now based upon the size and weight of the item. Mail is sorted into 3 categories and depending upon which category your item belongs to, depends upon the price. Royal Mail state that over 80% of mail will cost the same or less to send. The categories are:
Letters will include most letters, postcards, greetings cards, bills and statements. Mail within this category is priced at 32p stamped / 30p franked.
Dimensions: 240 x 165mm
Maximun thickness: 5mm
Maximum weight: 100g
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Large letters will include most brochures, catalogues, company reports,magazines, CDs, DVDs and A4 standard letters and envelopes. The price of a large letter stamp starts at 44p.
Dimensions: 353 x 250mm
Maximun thickness: 25mm
Maximum weight: 750g
Packets will include any item which is longer OR thicker OR wider than the dimensions for the 'Large Letter' category. Items such as VHS cassettes, books, some magazines and catalogues, parts and samples and prints or posters in cylindrical packaging are included in this category.
Dimensions: Larger than 353 x 250mm
Thicker than: 25mm
Heavier than: 750g
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| Why are Royal Mail making this change? |
| Royal Mail believe that: |
• Pricing in Proportion will introduce a fairer and simpler pricing system which more accurately reflects the cost of handling mail. This is because Royal Mail believes that the size and shape of mail is a more important factor in the cost of mail sorting and delivery than weight.
• The changes are needed so that Royal Mail can continue to provide a one-price-goes-anywhere universal postal service and can compete fairly with competitors in the future.
• Pricing in Proportion will make the process simpler and easier for customers and small businesses to post mail.
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| Which Royal Mail services are affected by these changes? |
• First & Second Class (Stamps / PPI / Meters / Response Services)
• Recorded (signed for)
• Freepost Name
• Packetpost and Packetsort
• Mailsort, Flatsort and Walksort
• Presstream and Big Book
• Door to Door will take an element of PiP format into account
• Cleanmail and mail media |
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| How can I measure my mail quickly and accurately? |
| You should have received a sizing template from the Royal Mail which was distributed to every household and business before the new structure came into effect. Neopost, Europe's number 1 leader and a worldwide provider of mailing and logistics systems, advertise various Pricing in Proportion tools on their website www.neopost.co.uk. Alternatively, select the Royal Mail link at the bottom of this website to order another sizing template. |
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| I send light A4 sized letters and packages. How can I reduce any cost impact? |
Fold letters in half to save over 30% on first class mail. Under the new Pricing in Proportion guidelines, the smaller the size of the item, the less it will cost to send!
By folding your A4 letter in half and using a smaller envelope, (C5,DL) you will save 12p on stamped postage or 14p on franked mail per letter (under 100g).
Did you know it costs about 5p to fill an envelope by hand? This means that if you send approximately 2000 letters and invoices a month, you're paying someone over £100 just to fill and seal the envelopes!
Automating this process will save valuable time, money and resources, and by inserting extra information into your mail shots, you could create new business opportunities.
To find out more about Folder Inserter equipment, please call Neopost on 0845 880 0000 or click here.
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| Which mailing machines calculate pricing based on both size and weight?* |
The i-Weigh™ Dynamic Scale from Neopost makes mail processing simple and accurate for every business, whether your mail volumes are 100 a day or 1,000. The i-Weigh™ accurately calculates postal rates according to weight and/or size of the item, processing up to 7,500 items per hour. Labour and time issues are reduced as there's no need to collate mail into same size/same weight batches prior to franking.
The i-Weigh™ can deliver huge annual savings for high volume post users. By checking both the size and weight whilst in motion, the i-Weigh™ ensures that your franking equipment applies the correct postage to every envelope, whether DL or C4, 3g or 1000g.
The i-Weigh™ Dynamic Scale is compatible with Neopost's IJ-70, IJ-80, IJ-90 and IJ-110 Digital Franking Machines. |
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| Pricing Table: Prices for First and Second Class mail with Pricing in Proportion as compared to the existing system |
| Format | Size | Weight | 1st Class
Stamps | 1st Class
Meters/Accounts | 2nd Class Stamps | 2nd Class
Meter/Account |
| Letters | Maximum
240x165mm
5mm thick | 0 - 100g | 32p | 30p | 23p | 21p |
| Large Letters | Maximum
353 x 250mm
25mm thick | 0 - 100g | 44p | 41p | 37p | 33p |
| 101g - 250g | 65p | 61p | 55p | 49p |
| 251g - 500g | 90p | 85p | 75p | 68p |
| 501g - 750g | £1.31 | £1.24 | £1.09 | 98p |
| Packets | Minimum
353mm long
250mm wide
25mm thick |
0 - 100g | £1.00 | 94p | 84p | 79p |
| 101g - 250g | £1.27 | £1.20 | £1.09 | £1.02 |
| 251g - 500g | £1.70 | £1.60 | £1.39 | £1.31 |
| 501g - 750g | £2.20 | £2.07 | £1.77 | £1.63 |
| 751g - 1kg | £2.70 | £2.55 | £2.12 | £1.95 |
| 1kg - 1.25kg | £4.47 | £4.60 | N/A | N/A |
Each
additional
250g or
part thereof | + 85p | +83 | N/A | N/A |
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