# Royal Mail prepares businesses for new Pricing in Proportion system

- Link: https://fundraising.co.uk/2006/02/24/royal-mail-prepares-businesses-new-pricing-proportion-system/
- Published: 2006-02-24T00:00:00+00:00
- Author: Howard Lake

![](https://www.fundraising.co.uk/files/images/news/4052.jpg)

The Royal Mail has launched a direct mail campaign to help businesses across the
UK prepare for the introduction of its new pricing system, Pricing in Proportion(
PiP), which will have a direct impact on charity direct marketing.
Packs providing
information on the new pricing system, as well as advice on how companies can manage
the impact of PiP, are being sent to nearly half a million small, medium and large
businesses from this week.

Charities received their tailored mailing on this issue in December 2005. Other 
tailored mailings have also been sent to the marketing, publishing, and home shopping
sectors on the grounds that these, plus charities, will be most affected by the 
changes.

Pricing in Proportion will be introduced on 21 August 2006 and takes into account
the size and shape as well as the weight of mail. Royal Mail say that it will mean
that “prices will more closely reflect the cost of collecting, sorting and delivering
mail.”

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The company claims that “no more than 30 per cent of business mail is expected to
be affected by the price changes” and that “up to half of the mail affected will
become cheaper to send.”

The Royal Mail’s awareness campaign for Pricing in Proportion is costing £10 million.

Later in the year, it will also send details on Pricing in Proption to every address
in the UK, both business and residential, to help ensure all customers are prepared
for the change in pricing.

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