New Prices Produce Direct Mail Postal Cost Cuts

Mailroom equipment manufacturer, Neopost, has highlighted that when Pricing in Proportion (PiP) comes in to effect there is more changing than just the way mail is valued.

Mailroom equipment manufacturer, Neopost, has highlighted that when Pricing in Proportion (PiP) comes in to effect in the UK postal market this month, there is more changing than just the way mail is valued.

Philippe Masson, Neopost's marketing director, explained: "Royal Mail's GBP10m advertising campaign is now fully underway with awareness of PiP increasing.

However, one message is still not being heard by businesses - the reduction applied to metered, or franked mail, compared to stamps, will increase." He added: "The saving on a standard letter will rise from 1p to 2p for both first and second class mail and this differential increases at larger formats and higher weights.

Businesses, that currently use stamps, can easily access discounts simply by using a franking machine." Neopost said it has already introduced a number of systems to enable businesses to control their postal budgets in response to PiP - from folder inserters programmed to select the smallest appropriate envelope size, to dynamic scales that automatically weigh and measure items as they pass through.

Masson commented: "Royal Mail introduced PiP to be more service centered.

It has devised rules, such as the 2p differential, that businesses can benefit from if they are willing to adapt.

Previously you paid a flat fee, even if you were just sending a postcard.

Now, you will have more control of this expense." And he continued: "Change is often unsettling but we believe this is an opportunity for organisations to revisit their current mail attitudes and realise that there is more to mail.".

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