What is Pricing in Proportion? The Royal Mail has 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. 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?

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