Date   : Sun, 28 Jun 2009 18:12:20 +0100
From   : info@... (Sprow)
Subject: eBay Pricing Psychology Discussion - was Re:

In article <7b48937250.chris@...>,
   Christopher <c.r.dewhurst@...> wrote:
> Pricing in Proportion? It favours flatter items - cheaper for Royal 
> Mail - the overworked postman can shove more things through the 
> letterbox and run...

PIP was an entirely unnecessary system introduced by Royal Mail.

All that should have been done was to do a frequency analysis of the types
of mail handled and adjust pricing accordingly. 

Say 60% of mail is thin flat letters/bills
    20% is junk mail or bulk mailing (which can be supplied to the sorting
        office presorted by post code)
    20% are parcels or oddball items

Rather than doubling the price a parcel costs (100% increase on 20% by
volume) you raise all prices by 20% (same net effect). 

This example is a bit oversimplified, you'd want to take into account the
cost of processing, business accounts, etc... but the underlying idea is the
same,
Sprow.