Royal Mail Plans Discount for Small Businesses

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Royal Mail plans to give small business customers a 1 pence (1.85 cents U.S.) discount off new stamp prices in April 2005 if they use franking machines, the UK postal service said.

It is also proposed that business customers sending their mail in envelopes carrying a prepaid postage indicia get the same discount starting in April.

Royal Mail said the discount for meter and PPI mail is a step toward bringing Royal Mail's prices more in line with the actual costs of handling and delivering the mail. Meter mail and PPI customers pay full stamp prices and get no discount currently. There are 210,000 customers using franking machines in the United Kingdom.

Royal Mail must publish by the end of December the prices it intends to charge beginning in April.

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