Royal Mail Plans Size-Based Pricing in August '06

Share this content:
Royal Mail named Aug. 21, 2006, as the day its Pricing in Proportion scheme takes effect.


Postcomm, the independent regulator for postal services in Britain, gave Royal Mail the all-clear last month to charge postage based on the size of a letter or package as well as its weight. Postcomm told Royal Mail that it could introduce Pricing in Proportion no earlier than Aug. 17, 2006, in order to let postal users prepare for the changes.


The new price structure will apply to most of Royal Mail's inland services, including first and second-class post. However, because the vast majority of mail is flat and weighs less than 60 grams, most people will find the price of mailing a letter to be the same, Postcomm said.


Postcomm's changes will let Royal Mail charge more for light but large mail such as very large greetings cards, rolls of photographic film and videotapes. But some heavier items, such as catalogs and books, would cost less. Any price increases need to be balanced by reductions elsewhere to make the restructuring revenue-neutral.


Letters and packages are now priced solely by weight, but Royal Mail said it costs more to sort, handle and deliver large envelopes and packages. This means light but bulky items are priced below cost, whereas heavy items are generally overpriced. Royal Mail wanted to change its prices to reflect its costs more accurately.


Royal Mail said that it selected the date following feedback from customers. The company also committed to run a publicity campaign explaining the changes.


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here