Save on postage with Business Mail Advanced
Business Mail Advanced is a simple way of reducing your postage costs. From 2nd January 2018, the service provides access to base savings starting at 18.2% over the price of a second class franked letter in return for meeting some simple qualification criteria.
- What is Business Mail Advanced?
- VAT and Business Mail Advanced
If you produce a minimum of 250 letters of the same class for delivery within the UK and you can prepare your mail so Royal Mail’s automated technology can read and verify the address and postcode, you can obtain the following discounts from the franking tariff price:
- From 2nd January 2018, 1st Class letters are discounted by 9.2p (16.1% reduction on Standard 1st Class Letter Meter prices).
- From 2nd January 2018, 2nd Class letters are discounted by 7.8p (18.2% reduction on Standard 2nd Class Letter Meter prices).
In addition, you can receive additional Volume Related Discounts, starting from 1.5% and rising to 7.5%. These additional savings start when 1,000 items qualify for Business Mail Advanced, and increase based on the volume of mail that you send.
From April 2nd 2012, Business Mail Advanced became subject to VAT. For further information visit www.royalmail.com/VAT
How is the discount assessed?
Firstly, you need to frank your mail using the discounted Business Mail Advanced rates contained within your franking machine.
As Royal Mail process your mail, sorting machines read the license number and check the letter for address accuracy. They then verify the discount on an item by item basis for every piece of your mail that is automatically sorted. Items failing to be automatically sorted are priced at Franked Meter Standard Tariff.
How do I claim the discount?
If you are sending between 250 -1,000 items in the mailing, the discount is already allocated in the prices franked by your meter. However, if items do not qualify for the discount, then the underpayment will be taken from your Pitney Bowes postage account.
If you are sending more than 1,000 items and qualify for a Volume Related discount, then the rebate will be applied to your Pitney Bowes postage account.
An invoice statement will be sent to you, so you can verify the transactions in your Pitney Bowes postage account and also claim back your VAT.
What criteria must be met to receive the discounts?
As well as sending a minimum of 250 letters your business needs to meet the following criteria:
Appropriate letter dimensions
- Minimum size is 145mm x 110mm. Maximum size is 240mm x 165mm
- Minimum thickness is 0.25mm. Maximum thickness is 5mm
Address must be located within UK
Appropriate address location and format
- Addresses must be machine printed in a defined area of the letter
- Optical Character Recognition (OCR) address specification is recommended
Appropriate clear zones
- Royal Mail requires certain areas of the mail piece to have no markings. These are called clear zones. Royal Mail print barcodes on each item in these areas to assist the sorting process
For more details please click here to visit the Royal Mail website