Pricing in Proportion: Marketing Strategies
On 21st August 2006 the Royal Mail introduced a major change to the way in which postage is calculated within the UK. Called Pricing in Proportion the new system takes into account the size of the item as well as its weight. The size and thickness of an article determine its format; letter, large letter, or packet. Each format hs 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, you can exploit it to make substantial savings on your direct mail campaigns.
1) Smaller is Cheaper
It now costs 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 have been revised to create fewer, wider bands. For example the 0 to 60g band has been replaced by a 0 to 100g band.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 em up!
3) The Word is Flat
The thickness of an item is now as important as its size and its weight. Putting bulky items like pens into envelopes will push items up into the next format, and increase the postage cost. So think carefully about what items you want to include in your mailings and promotions. Flatter is cheaper.
4) More is Less
Using DL or C5 envelopes increases the range of Royal Mail bulk discount schemes available to you. These offer significant savings on postal costs. If you are planning direct mail campaigns make sure you know the requirements for each service. These include item size, address accuracy, item weight and number of items.
If your mailing meets the first three of these requirements consider increasing the number of items you plan to send. It may be well worth your while. For example, you could save 9.79 on a mailing of 999 letter format items sent 2nd class just by making it a mailing of 1000 Cleanmail items and claiming the cheaper item rate.
Or you could save up to 471.65 on a 2nd class C4 mailing of 3999 items by making it a mailing of 4000 items.
Think bigger!
Pricing in Proportion is the biggest change in Royal Mail pricing for many years. Dont shy away from it. Exploit it! Seize the opportunities! You can make it work to your advantage.
About the author
Diana Lees is the Managing Director of the mailing house, MailRight Ltd., which specialises in the preparation, fulfilment and posting of direct mail campaigns. For more information on Pricing in Proportion or mailing advice derived from 16 years experience in the industry, visit http://mailright.co.uk/
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