Royal Mail prepares businesses for new Pricing in Proportion system
Howard Lake | 24 February 2006 | News
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.
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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.”
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.
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.