Royal Mail's new pricing system to start in August 2006
Howard Lake | 25 September 2005 | News
The Royal Mail will introduce ‘Pricing in Proportion’ (PIP), its new sized-based pricing system, on 21 August 2006.
PIP will mean that mail will be charged for by size as well as weight. Mail will fit into one of three categories: letter, large letter and packet. As such, it is likely to have a significant impact on charity direct mail activities.
Royal Mail says that it has introduced the new pricing system to ensure its prices “more closely reflect its costs when the postal market is opened up to full competition on 1 January 2006.” It argues that it is simply following the practices of postal operators in Australia, Canada, Japan and the USA, all of which already use size-based pricing systems.
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Royal Mail promises that it will run a communications campaign prior to the changeover to explain the new system.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.