Pricing in Proportion: Marketing Strategies

On 21st August 2006 the Royal Mail is introducing a major change to the way in which postage is calculated within the UK. Called Pricing in Proportion the new system will take into account the size of the item as well as its weight. The size and thickness of an article will determine its format; letter, large letter, or packet. Each format will have its own schedule of weight-band charges.

You can minimise your postal costs by understanding how the system works, and by employing the following strategies, exploit it to make substantial savings on your direct mail campaigns.

1) Smaller is Cheaper

From August 2006 it will cost more to send an A4 size letter. So fold the letter, put it in a DL or C5 envelopes and cut at least 12p from the postage cost per item.

2) Losing Weight Wastes Money

The weight bands applicable for each item format will be revised to create fewer, wider bands. For example the 0 to 60g band will be replaced by a 0 to 100g band. There are no rebates for weight allowances not used. So fill your marketing envelopes with more information about your business, more leaflets, more promotional flyers, more vouchers etc. It costs the same to send a 100g letter as it does a 60g so fill