2014 Price Guide Royal Mail Business Mail

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from 31st March 2014 2014 Price guide Royal Mail Business Mail 1st Class and Business Mail Rate Card prices ® Business Mail 1st Class and Business Mail pricing depends on: • the volume of your mailing • h  ow your letters are addressed – e.g. using OCR, Barcode or Mailmark™ barcode • whether you are presenting mail sorted or not sorted • your mail items weighing no more than 750g • a ll items meeting the Letter and Large Letter format dimensions. Helping your business thrive and prosper Online Business Account Royal Mail is a driving force for helping all individuals and businesses communicate and trade with each other to thrive and prosper. We focus on not just delivering to schedule, but on helping you with your wider needs around communication and trade with individuals and businesses locally, across the UK and worldwide – helping you do things you didn’t think possible. All delivered by Royal Mail. We also have a full range of International contract services to send outbound mail from the UK and receive inbound mail from overseas. To find out more about our international contract services go to: www.royalmail.com/ics Of course, if you have any questions about our prices or services, or need advice on which services may be best for your business, just call our Business Customer Helpline on: 08457 950 950 between 8.00am and 6.00pm – Monday to Friday. The best way to access services in this price guide is via a Royal Mail Online Business Account, which is our online ordering and invoicing system. It allows you to order mail services and manage your Royal Mail invoices quickly and simply in one place. For more information go to: www.royalmail.com/oba Royal Mail Mailmark option ® Royal Mail Mailmark is an exciting new option for machine readable Business Mail 1st and Business Mail. A unique Mailmark™ barcode is added to each item in your mailing and associated information is submitted to us via an eManifest. This enables us to provide you with consignment level reporting on mail performance and predicted delivery at no extra cost from Royal Mail. The Mailmark™ option is being rolled out in 2014. For more information relating to the new Mailmark™ option please visit www.royalmail.com/mailmark Business Mail Rate Card The final invoice price is based on the base price and any applicable percentage discount. The prices determined in this rate card are indicative and may not perfectly match the final invoiced amount due to rounding. Business Mail 1st Class and Business Mail share many of the same features, other than delivery speed. For all the options set out in this Rate Card the same options apply to Business Mail 1st Class and to Business Mail, unless otherwise stated. From 31st March 2014 prices in this rate card can be found at www.royalmail.com/business-mail Although correct at the time this price guide was produced (March 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 www.royalmail.com Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Business Mail 4 Unsorted 1st Class* Full Price 49.0p 74.0p 104.0p 138.0p 195.0p Weight 0-100g 0-100g 101-250g 251-500g 501-750g 2nd Class** Full Price 35.0p 60.0p 85.0p 113.0p 159.0p Prices in this table exclude VAT, which is charged at the standard rate. *for Business Mail 1st Class only **for Business Mail only ***In order to qualify for a price based on number of items, items must be of the same service, class and format, and be contained on a single sales order. Table 3 – Volume thresholds per day Letter Large Letter Band 1 0-999 Band 2 1000-2499 250-749 Band 3 2500-9999 750-1999 Band 4 10000-24999 2000-4999 Band 5 25000+ 5000+ Volume Related Discounts (VRDs) for our Machine-readable option, Machine-readable Plus option, Machine-readable Advanced option and Non-machine-readable, non-sorted options: Table 4 – Discounts* Letter Large Letter Table 2 – Machine-readable, non-sorted and Plus options Format Option Weight 1st Class* Full Price Letter Machine-readable OCR 0-100g 42.8p 28.1p Machine-readable Barcode 0-100g 42.5p 27.8p Machine-readable Plus OCR 0-100g 42.3p 27.6p Machine-readable Plus Barcode/ MailmarkTM barcode Machine-readable Advanced*** 0-100g 42.0p 27.3p 0-100g 43.7p 28.7p Machine-readable OCR/ Plus OCR/ MailmarkTM barcode 0-100g 70.0p 56.0p 101-250g 100.0p 81.0p 251-500g 134.0p 109.0p 501-750g 191.0p 155.0p Large Letter 5 Volume threshold per day (n.b. 500 items per mailing entry level for some Machine-readable Letters, 250 items for all Machine-readable Large Letters): Table 1 – Non-machine-readable, non-sorted option Format*** Letter Large Letter Business Mail 2nd Class** Full Price Band 1 0.00% Band 2 1.50% 1.50% Band 3 3.50% 3.50% Band 4 5.50% 5.50% Band 5 7.50% 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. Prices in this table exclude VAT, which is charged at the standard rate. *for Business Mail 1st Class only. **for Business Mail only. ***Items posted on account that do not meet the machine-readable Advanced specification will be charged at full Non-machinereadable rate. Discounts apply above 500 items per mailing. Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Business Mail 6 Business Mail 7 Low Sort Low Sort Table 1 – Full prices and per gram increments Table 3 – Volume Related Discount*** Format Letter Large Letter OCR Large Letter MailmarkTM barcode Weight 0-100g 0-100g 101-250g 251-750g 0-100g 101-250g 251-750g 1st Class* Full Per Gram Price Increment 2nd Class** Full Per Gram Price Increment Economy** Full Per Gram Price Increment 47.3p 60.4p 68.5p 68.5p 60.6p 68.2p 68.2p 32.7p 42.5p 55.5p 55.5p 43.1p 56.0p 56.0p 29.5p 38.1p 49.2p 49.2p 38.5p 49.4p 49.4p N/A N/A N/A 0.1962p N/A N/A 0.1848p N/A N/A N/A 0.1463p N/A N/A 0.1414p N/A N/A N/A 0.1442p N/A N/A 0.1373p Format Letter Large Letter OCR Prices in this table exclude VAT, which is charged at the standard rate. Table 2 – Sortation and machine-readable discount Letters OCR Letters Barcode & MailmarkTM barcode Large Letters OCR Large Letters MailmarkTM barcode 1st Class* Direct Items 2nd Class** Direct Items Economy** Direct Items 19.50% 20.80% 10.00% 12.00% 19.50% 20.80% 10.00% 12.00% 19.50% 20.80% 10.00% 12.00% Large Letter MailmarkTM barcode Number of Direct Items 4,000-19,999 20,000-39,999 40,000-79,999 80,000-119,999 120,000 + 1,000-9,999 10,000-19,999 20,000-39,999 40,000-59,999 60,000 + 1,000 – 9,999 10,000 – 19,999 20,000 – 39,999 40,000 – 59,999 60,000 + 1st Class* Direct Items 2nd Class** Direct Items Economy** Direct Items 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.00% 1.50% 2.00% 3.00% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.00% 1.50% 2.00% 3.00% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.00% 1.50% 2.00% 3.00% 0.00% 1.50% 3.50% 4.50% 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). NB: 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’. Table 4 - Trayed Mail Savings Saving per item Low Sort Letters 0.20p Low Sort Large Letters (up to 10mm thick) 0.30p Discounts apply after all other discounts (VRDs, sortation etc) are applied but before VAT For further information on using trays please visit www.royalmail.com/traysavings Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Business Mail 8 Business Mail 9 Calculating the price of your mailing High Sort Table 1 – Full prices and per gram increments 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. Letter Large Letter 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 = 29.5p from Table 1. Step 2: Sortation and machine-readable discount for Low Sort Letters OCR = 19.5% from Table 2. 0-100g 0-100g 101-250g 251-750g Economy** Full Per Gram Price Increment 49.5p 60.6p 68.2p 68.2p 34.1p 43.1p 56.0p 56.0p 28.6p 38.5p 49.4p 49.4p N/A N/A N/A 0.1848p N/A N/A N/A 0.1414p N/A N/A N/A 0.1373p Table 2 – Sortation Discounts Letter Large Letter 1st Class* Direct Residue Items Items 9.00% 6.00% 12.00% 2.10% 2nd Class** Direct Residue Items Items 9.00% 6.00% 12.00% 2.10% Economy** Direct Residue Items Items 9.00% 6.00% 12.00% 2.10% Table 3 – Volume Related Discounts for Direct*** Step 3: VRD from Table 3 = 4.5%, added to the sortation and machine-readable discount of 19.5% gives total aggregate discount of 24.0% Format Step 4: Price per item = 29.5p x (100%-24.0%) = 22.42p Letter Step 5: Total price of mailing = (22.42p x 102,000) /100 = £22,868.40 (excluding VAT). Trayed Mail Savings: Letter mailings presented in trays will save 0.2p per item from Table 4 = (0.2p x 102,000)/100 = £204.00 (excluding VAT). Total tray price of mailing = £22,868.40 - £204.00 = £22,664.40 (excluding VAT). Weight 2nd Class** Full Per Gram Price Increment Prices in this table exclude VAT, which is charged at the standard rate. Format Worked example Format 1st Class* Full Per Gram Price Increment Large Letter Number of Direct Items 4,000-19,999 20,000-39,999 40,000-79,999 80,000-119,999 120,000 + 1,000-9,999 10,000-19,999 20,000-39,999 40,000-59,999 60,000 + 1st Class* Direct Items 2nd Class** Direct Items Economy** Direct Items 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 5.30% 0.00% 1.50% 3.50% 4.50% 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). Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Business Mail 10 Business Mail 11 High Sort Calculating the price of your mailing Aggregating volumes on Direct selections to achieve and maximise Volume Related Discounts: In order to reach the VRD threshold on any given posting day, and to maximise the level of VRD obtainable, you can aggregate volumes on Direct selections in 2 ways: 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. 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 maximise 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 non-sorted 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 Letter Large Letter Number of Residue Items 4,000-19,999 20,000-39,999 40,000-79,999 80,000-119,999 120,000 + 1,000-9,999 10,000-19,999 20,000-39,999 40,000-59,999 60,000 + 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 1st Class* Residue Items 2nd Class** Residue Items Economy** Residue Items 0.00% 1.50% 2.50% 2.50% 3.00% 0.00% 1.50% 2.50% 2.50% 3.00% 0.00% 1.50% 2.50% 2.50% 3.00% 0.00% 1.50% 2.50% 2.50% 3.00% 0.00% 1.00% 1.50% 2.00% 2.00% 0.00% 1.00% 1.50% 2.00% 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 A High Sort 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 = 56.0p + ((302 – 250) x 0.1414p) = 63.353p, rounded to the nearest 1/10th of a penny = 63.4p Step 2: Direct discount = 12%, Residue discount = 2.1% from Table 2. Step 3: Direct VRD from Table 3 = 5.3%, added to the Direct discount of 12% gives a total discount for Direct items of 17.3%. Residue VRD from Table 4 = 1.5%, added to the Residue discount of 2.1% gives a total discount for Residue items of 3.6% Step 4:  Price of Directs = 63.4p x (100%-17.3%) = 52.4318p Price of Residues = 63.4p x (100%-3.6%) = 61.117p Step 5: Price of Directs in mailing = (52.4318p x 90,000)/100 = £47,188.62 Price of Residues in mailing = (61.1176p x 12,000)/100 = £7,334.11 Step 6: Total for this mailing = £47,188.62 + £7,334.11 = £54,522.73 (excluding VAT). Trayed Mail Savings: Large Letter mailings presented in trays will save 0.3p per item from Table 5 = (0.3p x 102,000)/100 = £306.00 (excluding VAT). Table 5 - Trayed Mail Savings Saving per item High Sort Letters 0.20p High Sort Large Letters (up to 10mm thick) 0.30p Discounts apply after all other discounts (VRDs, sortation etc) are applied but before VAT Total tray price of mailing = £54,522.73 - £306.00 = £54,216.73 (excluding VAT). For further information on using trays please visit www.royalmail.com/traysavings Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Royal Mail Contract Prices March 2014 www.royalmail.com 08457 950 950 Revenue Protection Fees 12 Revenue Protection Fees Fault Delivery Point Suffix Specification Not Met Applies to Incorrect Labels/Bag ties Sorted Incorrect Cage cards Sorted Postage Stamps presented uncancelled Sorted Storage costs Sorted Overweight bags Sorted Overweight cages Sorted Sorted machine-readable Low Impact Presentation errors Sorted Low Volume Faults Sorted machine-readable Medium Volume Low Impact Faults Sorted machine-readable Medium Volume High Impact Faults Sorted machine-readable High Volume Low Impact Faults Sorted and non-sorted machine-readable High Volume High Impact Faults Sorted Minimum Average Items Per Selection Sorted Fee N/A Per item 0.5p Applied to 100% of mailing £25 20p each label or tie used £25 25p each card used N/A STL rate +10% 100% of mailing N/A 25p per cage per day £25 65p per Bag/Tray generated £25 £1.30 per Cage/York generated N/A 50% loss of discount 100% of mailing £25 N/A 100% of mailing £25 0.1p 100% of mailing £25 adjustment 10% of mailing £25* 1.0p £25 adjustment 100% of mailing £25 adjustment 100% of mailing 100% of mailing Prices in this table exclude VAT, which is charged at the standard rate. *Fee applies to sorted machine-readable mail only. Prices correct as at 31st March 2014. Please check that you are using the prevailing Rate Card. In all cases Prices are per item. Royal Mail, the Cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd. Business Mail 1st Class and Business Mail rate card © Royal Mail Group Ltd 2014. All rights reserved. Royal Mail Group Ltd, registered in England and Wales, number 4138203, registered office: 100 Victoria Embankment, London EC4Y 0HQ.