# Royal Mail's new pricing system to start in August 2006

- Link: https://fundraising.co.uk/2005/09/25/royal-mail039s-new-pricing-system-start-august-2006/
- Published: 2005-09-25T23:00:00+01:00
- Author: Howard Lake

![](https://www.fundraising.co.uk/files/images/news/3610.jpg)

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.

Royal Mail promises that it will run a communications campaign prior to the changeover
to explain the new system.

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