What is Size-based Pricing (SBP)?
Size-based Pricing (SBP) differs from traditional postage methods and involves calculating postal charges on the size as well as the weight of the item to be posted.
SBP is becoming industry standard and is now used by many postal authorities around the world including Denmark, Germany, Ireland, Australia, Japan and the USA. SBP was introduced by the Royal Mail in August 2006, and Guernsey Post introduced the system on 1 April this year.
Why is Jersey Post introducing SBP?
The Royal Mail is one of Jersey Post’s major partners for the processing and delivery of mail to the UK and to international destinations. The Royal Mail bases its contracts with large corporate customers like Jersey Post on the same charging principals that they apply to personal customers who use their postal services.
As a result of this situation, and until such time as Jersey Post can realign its charges to customers, there is a mismatch between what Jersey Post charges customers for delivery and what we pay our suppliers. This is making the business unsustainable.
What does SBP mean?
SBP will mean a number of changes to the traditional methods that customers use to send items with Jersey Post. The first change will be the creation of three new categories into which all items will fit - Letter, Large Letter and Packet.
Jersey Post will also be introducing new delivery options for all local mail to offer greater choice for customers posting locally. Rather than just one service, there will soon be two - Standard and Priority. The Standard Service will be cheaper than Priority and will have a three day delivery target.