Postage price changes to ‘Pricing in Proportion’

Pricing in Proportion (previously known as Size Base Pricing) is a pricing system that takes into account the size and thickness as well as the weight of the item being posted.

The current pricing structure for letters and packets is based on the weight of the item to be mailed. It costs more to sort, handle and deliver big envelopes and packets [it is claimed by Royal Mail]. This means that light but bulky items are priced below cost, whereas heavy items are generally overpriced. Royal Mail proposes to change its processes to more accurately reflect the cost.

Under this new proposal, size will still be the main determinant of price; the general effect would be to increase prices for relatively light but large or unusually shaped mail items, while decreasing prices for small and thin but heavy items. There will be three single sizes for ordinary mail with the following weight banding: a single weight band for 'Letters', four weight bands for 'Large Letters' and five for 'Packets'

70% of all post currently falls into the 'Letters format, so a majority of mail will remain unaffected.

21st August 2006 is the date when Royal Mail will introduce Pricing in Proportion.

Source: pitneybowes.co.uk September 2005