Business Mail Rate card. Royal Mail Business Mail and Business Mail 1st Class
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1 Rate card Royal Mail Business Mail and Business Mail 1st Class January 2015
2 Helping your business thrive and prosper In a digital world, consumers place a high value on mail. We believe in the power of 1 to 1 communications to build customer relationships. Technology has transformed communications, but the core strengths of mail have endured and in some cases grown even stronger. Mail helps you connect with your customers and attract new customers in a way that few other channels can, especially when combined with digital. Contents Know your formats 4 Business Mail 1st Class & Business Mail Unsorted: Full prices and per gram increments 5 Low Sort: Full prices and per gram increments 7 Calculating the price of your mailing 9 : Full prices and per gram increments 10 Calculating the price of your mailing 12 Adjustment charges 13 Royal Mail is the UK s designated Universal Postal Service Provider, supporting customers, businesses and communities across the country. We are the only company that has the capability to deliver a one-price-goes-anywhere, six-days-aweek service on a range of letters and parcels to more than 29 million addresses across the UK. Online Calculator Use our online price calculator to find the best options for your mailing. There s also a downloadable excel version. For other prices such as stamps, franking, parcels and international please visit: From 5th January 2015 prices in this rate card can be found at Although correct at the time this price guide was produced (December 2014), postal prices, fees and other conditions are subject to revision from time to time and services may need to be added or withdrawn. Up-to-date information may be obtained by visiting
3 Know your formats Business Mail Here are the formats we use to work out the postage. Each format has its own size and weight limits. The illustrations below will help you work out which format your item will fall into. Unsorted Table 1 Non-machine-readable, unsorted option 1st Class * 2nd Class ** Letter Up to 100g Large Letter Up to 750g Format Weight Full Full Letter 0-100g 51.0p 36.0p D5mm L240mm W165mm W250mm L353mm D25mm Large Letter 0-100g 78.0p 63.0p g 109.0p 88.0p g 143.0p 117.0p g 202.0p 165.0p *for Business Mail 1st Class only **for Business Mail only Unsorted Table 2 Machine-readable, unsorted and Plus options Large Letter machine readable Up to 750g W245mm L345mm D10mm There is no Parcel option in Business Mail and goods are not permitted in Business Mail Large Letters. For information on Parcels services please visit 1st Class * 2nd Class ** Format Option Weight Full Full Letter Mailmark 0-100g 43.0p 27.9p Barcode/ Plus Barcode 0-100g 43.3p 28.2p Large Letter OCR/ Plus OCR 0-100g 43.5p 28.4p Advanced *** 0-100g 44.8p 29.4p Mailmark/OCR 0-100g 73.5p 58.5p g 105.0p 84.0p g 139.0p 113.0p g 198.0p 161.0p *for Business Mail 1st Class only. **for Business Mail only. *** posted on account that do not meet the machine-readable Advanced specification will be charged at full Non-machine-readable rate. Discounts apply above 500 items per mailing. 4 Royal Mail Business Mail Rate Card January Royal Mail Business Mail Rate Card January
4 Business Mail Unsorted Table 3 Volume thresholds per day Format Band 1 Band 2 Band 3 Band 4 Band 5 Letter Large Letter Volume threshold per day. Please note for Machine-readable items (refered to in table 2) there is a minimum entry of 500 items for Letters and 250 items for Large Letters. Volume Related Discounts (VRDs) for our Machine-readable option, Machine-readable Plus option, Machine-readable Advanced option and Non-machine-readable, unsorted options: Unsorted Table 4 Discounts* Format Band 1 Band 2 Band 3 Band 4 Band 5 Letter 0.00% 1.50% 3.50% 5.50% 7.50% Large Letter 0.00% 1.50% 3.50% 5.50% 7.50% * Discount is applicable on mailings posted on a single sales order from the same site and cannot be aggregated across product options, class or format and are for account customers only. VRDs are applicable on the basic postage element of mailings and are not applied to any add-ons, e.g. Royal Mail Signed For. For account customers only on our Machine-readable option & Machine readable Plus option, and account and franking customers for our Machine-readable Advanced option. Low Sort Table 1 Full prices and per gram increments Format Weight Full Full Full Letter 0-100g 48.9p N/A 33.9p N/A 30.6p N/A Large Letter 0-100g 62.7p N/A 44.0p N/A 39.4p N/A OCR g 71.0p N/A 57.4p N/A 50.9p N/A g 71.0p p 57.4p p 50.9p p Large Letter 0-100g 62.9p N/A 44.6p N/A 39.8p N/A Mailmark g 70.7p N/A 58.0p N/A 51.1p N/A g 70.7p p 58.0p p 51.1p p Low Sort Table 2 Sortation and machine-readable discount Direct Direct Direct Letters OCR 19.65% 19.65% 19.65% Letters Barcode 20.18% 20.18% 20.18% Letters Mailmark 21.00% 21.00% 21.00% Large Letters OCR 10.25% 10.25% 10.25% Large Letters Mailmark 12.20% 12.20% 12.20% 6 Royal Mail Business Mail Rate Card January Royal Mail Business Mail Rate Card January
5 Business Mail Low Sort Table 3 Volume Related Discount *** 1st Class 2nd Class Economy Format Number of Direct Direct Direct Direct Letter 0 19, % 0.00% 0.00% 20,000 39, % 1.50% 1.50% 40,000 79, % 3.50% 3.50% 80, , % 4.50% 4.50% 120, % 5.30% 5.30% Large Letter 0 9, % 0.00% 0.00% OCR 10,000 19, % 1.00% 1.00% 20,000 39, % 1.50% 1.50% 40,000 59, % 2.00% 2.00% 60, % 3.00% 3.00% Large Letter Mailmark barcode 0 9, % 0.00% 0.00% 10,000 19, % 1.50% 1.50% 20,000 39, % 3.50% 3.50% 40,000 59, % 4.50% 4.50% 60, % 5.30% 5.30% *for Business Mail 1st Class only. **for Business Mail only. *** Volume Related Discounts for Direct items are based on total daily volumes over multiple sales order lines providing all items are posted on the same day; posted from the same posting location (site); posted via the same product and format, and only apply to Direct items (Residue items are not counted towards the calculation). Please note when you are making a Low Sort posting and have the option on OBA to enter the volume as either Directs or Residues please select the Direct option. While there is only one sorting option available to you, to ensure that the correct discounts are applied please enter the items as Directs. Low Sort Table 4 - Trayed Mail Savings Saving per item Calculating the price of your mailing Step 1: Find the full price for the items you are mailing from Table 1. If the item is Large Letter format and weighs more than 250g, then an incremental price should be added to the full price based on the exact weight of the item. The incremental price is calculated as the incremental weight in grams above 250g multiplied by the gram price increment. The result is rounded to the nearest 1/10th of a penny. Step 2: Identify the appropriate sortation and machine-readable discount from Table 2. Step 3: Add to the sortation and machine-readable discount the applicable volume related discount from Table 3. Step 4: Apply the aggregate discount percentage to the full price to calculate the item price. Step 5: Multiply the item price by the number of items to calculate the total transaction price excluding VAT. Worked example A Low Sort Economy posting of 102,000 Letters OCR weighing 80g each. Step 1: The full price for a Low Sort Economy option 80g Letter = 30.6p from Table 1. Step 2: Sortation and machine-readable discount for Low Sort Letters OCR = 19.65% from Table 2. Step 3: VRD from Table 3 = 4.50%, added to the sortation and machine-readable discount of 19.65% gives total aggregate discount of 24.15%. Step 4: per item = 30.6p x (100%-24.15%) = p Step 5: Total price of mailing = ( p x 102,000) /100 = 23, (excluding VAT). Trayed Mail Savings: Letter mailings presented in trays will save 0.25p per item from Table 4 = (0.25p x 102,000)/100 = (excluding VAT). Total tray price of mailing = 23, = 23, (excluding VAT). Low Sort Letters 0.25p Low Sort Large Letters (up to 10mm thick) 0.40p Discounts apply after all other discounts (VRDs, sortation etc) are applied but before VAT For further information on using trays please visit 8 Royal Mail Business Mail Rate Card January Royal Mail Business Mail Rate Card January
6 Business Mail Table 1 Full prices and per gram increments Format Weight Full Full Full Letter 0-100g 51.2p N/A 35.2p N/A 29.5p N/A Large Letter 0-100g 62.9p N/A 44.6p N/A 39.8p N/A g 70.7p N/A 58.0p N/A 51.1p N/A g 70.7p p 58.0p p 51.1p p Table 2 Sortation Discounts Format Direct Residue Direct Residue Direct Residue Letter 8.60% 6.00% 8.60% 6.00% 8.60% 6.00% Large Letter 12.20% 2.30% 12.20% 2.30% 12.20% 2.30% Table 3 Volume Related Discounts for Direct *** Format Number of Direct Direct Direct Direct Letter 0 19, % 0.00% 0.00% 20,000-39, % 1.50% 1.50% 40,000-79, % 3.50% 3.50% 80, , % 4.50% 4.50% 120, % 5.30% 5.30% Large Letter 0 9, % 0.00% 0.00% 10,000 19, % 1.50% 1.50% 20,000 39, % 3.50% 3.50% 40,000 59, % 4.50% 4.50% 60, % 5.30% 5.30% *for Business Mail 1st Class only. **for Business Mail only. *** Volume Related Discounts for Direct items are based on total daily volumes over multiple sales order lines providing all items are posted on the same day; posted from the same posting location (site); posted via the same product and format, and only apply to Direct items (Residue items are not counted towards the calculation). Aggregating volumes on Direct selections to achieve and imise Volume Related Discounts: In order to reach the VRD threshold on any given posting day, and to imise the level of VRD obtainable, you can aggregate volumes on Direct selections in 2 ways: 1. You can combine a number of the same product / service level mailings onto one confirmed sales order. You will need to show in the comments field all the job reference numbers or part jobs included on that confirmed sales order. If you do this and then have multiple entries on a single confirmed sales order you must link the individual lines with the appropriate Customer Reference Number (CRN) to imise your Volume Related Discount. 2. If you are unable to show all mailings for one day on a single confirmed sales order (usually because mailings are at different times) you must put the same Customer Reference Number (CRN) on each confirmed sales order and against each multiple entry. It is not possible to aggregate different sales orders posted on the same day for any unsorted products (Business Mail, Advertising Mail and Business Mail Advanced option). Any applicable VRDs are calculated at the time you confirm your sales order and will be reflected on the invoice for that date of posting. Table 4 Volume Related Discounts for Residue *** Format Number of Direct Residue Residue Residue Letter 0 19, % 0.00% 0.00% 20,000-39, % 1.50% 1.00% 40,000-79, % 2.50% 1.50% 80, , % 2.50% 2.00% 120, % 3.00% 2.00% Large Letter 0 9, % 0.00% 0.00% 10,000 19, % 1.50% 1.00% 20,000 39, % 2.50% 1.50% 40,000 59, % 2.50% 2.00% 60, % 3.00% 2.00% *for Business Mail 1st Class only. **for Business Mail only. *** Direct selection volumes or multiple posting volumes against any other sales order lines cannot be counted towards the Volume Related Discount calculation for Residue items Table 5 - Trayed Mail Savings Saving per item Letters 0.25p Large Letters (up to 10mm thick) 0.40p Discounts apply after all other discounts (VRDs, sortation etc) are applied but before VAT For further information on using trays please visit 10 Royal Mail Business Mail Rate Card January Royal Mail Business Mail Rate Card January
7 Adjustment Charges Calculating the price of your mailing Step 1: Find the full price for the items you are mailing from Table 1. If the item weighs more than 250g, then an incremental price should be added to the full price based on the exact weight of the item. The incremental price is calculated as the incremental weight in grams above 250g multiplied by the gram price increment. The result is rounded to the nearest 1/10th of a penny. Step 2: Identify the appropriate sortation discount from Table 2. Step 3: Add to the sortation discount the applicable volume related discount for Direct (from Table 3) and Residue items (from Table 4). Step 4: Apply the aggregate discount to the full price to calculate the item prices for Direct and Residue items. Step 5: Multiply the Direct and Residue prices by the number of items in each category. Step 6: Add the Direct and Residue values together to calculate the total transaction price excluding VAT. Worked example A 2nd Class posting of 102,000 Large Letters weighing 302g each. 90,000 of these are Directs and 12,000 are Residues. Step 1: The full price = 57.96p + (( ) x p) = p, rounded to the nearest 1/10th of a penny = 65.6p Step 2: Direct discount = 12.2%, Residue discount = 2.3% from Table 2. Step 3: Direct VRD from Table 3 = 5.3%, added to the Direct discount of 12.2% gives a total discount for Direct items of 17.5%. Residue VRD from Table 4 = 1.5%, added to the Residue discount of 2.3% gives a total discount for Residue items of 3.8% There are some occasions when mail does not meet our specifications, but we are still able to handle it for an additional charge. We will normally contact the poster and explain the problem before making a charge. (This is not possible for the Mailmark option.) Mailmark Adjustment Charges Fault Applies to Flat Fee Per item fee Note Missorts Mailmark Letters n/a 20.04p Missorts Mailmark Large Letters n/a 43.16p Presented as unsorted Mailmark sorted Letters n/a 6p Presented as unsorted Mailmark sorted Large Letters n/a 37p International item as domestic Mailmark Letters and Large Letters n/a 1.28 Unable to resolve Mailmark Letters n/a 13.2p Unable to resolve Mailmark Large Letters n/a 16.5p Non machine processed Mailmark Letters n/a 13.2p Non machine processed Mailmark Large Letters n/a 16.5p Postcode accuracy Mailmark Letters n/a 13.2p Postcode accuracy Mailmark Large Letters n/a 16.9p Delivery point suffix accuracy Missing or incorrect emanifest ID Mailmark Letters and Large Letters Mailmark Letters and Large Letters n/a 0.9p Full detail of the Mailmark adjustment framework is available at Adjustment charges only apply when one or a combination of charges result in a charge of 10 or more per emanifest Postcode and Delivery point suffix accuracy adjustment charges only apply if the combined result drops below 90% per emanifest 10 n/a per emanifest Step 4: of Directs = 65.6p x (100%-17.5%) = 54.12p of Residues = 65.6p x (100%-3.8%) = p Step 5: of Directs in mailing = (54.12p x 90,000)/100 = 48, of Residues in mailing = (63.107p x 12,000)/100 = 7, Step 6: Total for this mailing = 48, , = 56, (excluding VAT). Trayed Mail Savings: Large Letter mailings presented in trays will save 0.4p per item from Table 5 = (0.4p x 102,000)/100 = (excluding VAT). Total tray price of mailing = 56, = 55, (excluding VAT). 12 Royal Mail Business Mail Rate Card January Royal Mail Business Mail Rate Card January
8 Adjustment Charges Machine Readable Adjustment Charges Fault Applies to Flat Fee Per item fee Note Low volume faults Sorted 25 n/a per posting Medium volume low impact faults Medium volume high impact faults High volume low impact faults High volume high impact faults Delivery point suffix accuracy Sorted p Sorted 25 adjustment Sorted and unsorted 25 * 1.0p Sorted 25 adjustment Sorted n/a 0.5p 0.1p x volume of posting 10% of posting adjusted 1.0p x 100% of posting 100% of mailing adjusted 0.5p x volume of posting Incorrect licence design BMA on account 10 n/a per month Contact We hope that this tariff guide has been useful, but should you need any further help or advice, please do contact your Account Manager, or the customer helpline: or through our website: Alternative formats If it would help you to have this booklet in a different format, we can provide it free of charge as: A large print booklet An audio tape An audio CD A Braille booklet Simply call us on If you are deaf or hearing impaired, we offer a textphone service on *Fee applies to sorted machine-readable mail only. Full details of the Low/High machine readable faults are available in the Quick Guides at Other Adjustment Charges Fault Applies to Flat Fee Per item fee Note Presentation errors Sorted 25 N/A per posting Incorrect labels/bag ties Sorted 25 20p per label or tie Incorrect cage cards Sorted 25 25p per card used Stamps presented uncancelled Sorted N/A STL rate plus 10% 100% of posting Storage costs Sorted N/A 25p per cage per day Overweight bags/bundles/ trays Sorted 25 65p Overweight cages/yorks Sorted Minimum average per selection per bag/tray generated per Cage/York generated Sorted 25 adjustment 100% of mailing Bulk surcharges Unsorted N/A 30p * per item s in this table exclude VAT, which is charged at the standard rate, except for Bulk surcharges. *Bulk surcharges are exempt from VAT. 14 Royal Mail Business Mail Rate Card January Royal Mail, the Cruciform all marks indicated with are registered trade marks of Royal Mail Group Ltd. Marketing Services guide 2015 Royal Mail Group All rights reserved. Royal Mail is a trading name of Royal Mail Group Ltd, registered in England and Wales number Registered office 100 Victoria Embankment, LONDON, EC4Y 0HQ.
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