Lower prices for Catalogues in 2017 Helping You to Grow Your Business Royal Mail Wholesale

What is the Catalogue trial for? Standard pricing restricted catalogues to weights <100g Many catalogues stayed below 100g weight as a consequence of our pricing structure Yet, you told us you can drive increased sales through increasing the pagination and/or improving paper quality, both of which impact on the weight 31.05p 19.08p < 100g Letter 101g – 250g Large Letter All rates based on 2016 tariff Royal Mail Wholesale

What is new? Royal Mail Wholesale Royal Mail has extended the trial for a further 1 year The trial will now be available for catalogue postings until the end of March 2018. Lower prices for Catalogues in 2017 Customer feedback was clear that the initial price increase (101-110g) is too big to be economically viable , and it is not until they get to 130g+ that the price/ weight ratio starts to work Based on this feedback we have introduced A straight line pricing regime between 100 and 150g; and Reduced the size of the price increase at 101g This means lower prices in 2017 for Catalogues that weigh between 101 and 130g Royal Mail Wholesale

More Flexible Letter Format Straight line pricing reduces the price increase at the initial weight steps for letter formats 2016 pricing bands for Advertising Mail Catalogue option 0 – 100g 101 – 110g 111 – 120g 121 – 130g 131 – 140g 141 – 150g 22.08p 22.58p 23.08p 23.58p 24.58p 19.08p Large Letter 2017 pricing bands for Advertising Mail Catalogue option 0 – 100g 101 – 110g 111 – 120g 121 – 130g 131 – 140g 141 – 150g 21.52p 22.63p 23.74p 24.86p 20.41p 19.29p Large Letter Royal Mail Wholesale

More Flexible Large Letter Format And straight line pricing also reduces the price increase at the initial weight steps for large letter formats 2016 pricing bands for Advertising Mail Catalogue option 0 – 100g 101 – 110g 111 – 120g 121 – 130g 131 – 140g 141 – 150g 26.38p 27.38p 28.38p 29.88p 25.38p 22.38p 31.05p 2017 pricing bands for Advertising Mail Catalogue option 0 – 100g 101 – 110g 111 – 120g 121 – 130g 131 – 140g 141 – 150g 24.07p 25.53p 26.99p 28.48p 29.91p 22.61p 31.37p Royal Mail Wholesale

Ways It Could Work for You How you could use this change to grow your business Currently <100g Currently 101 - 150g Increase catalogue weight above 100g but pay a more graduated price This could enable you to: More cost effectively increase pagination to display more products Increase paper weight to test recipient effect Test effect on response and average order values Add inserts to make packs more cost effective Re-invest postage savings to increase customer reach and sales This could enable you to: Mail more packs for the same money Increase acquisition volumes Mail to lower performing segments or lapsed customers Create new testing strategies or review campaign cost of acquisition Royal Mail Wholesale

Is My Catalogue Eligible? Your mailing will be eligible for the catalogue prices if: the mailing primarily comprises a list of goods and/or services, together with a description, image and price; the goods and/or services are sold directly from the page at the prices listed; and the editorial and other content of the mailing is minimal. Examples of Eligible Mailings A mail order company sending its new or seasonal catalogue to a prospective customer base A travel company sending its new or seasonal holiday brochure to an existing or prospective customer base. A mail order company sending its new or seasonal catalogue to an existing customer base. Royal Mail Wholesale

A Few Technical Points Royal Mail Wholesale Check your catalogue meets the content requirement for the new Advertising Mail Catalogue service against the specification Check that you have set up Royal Mail Wholesale to receive a seed/sample on the day of mailing Ensure the UCID number will be printed on each seed/sample to correlate with each mailing. If you prepare the posting docket, ensure that you: Make any necessary IT upload adjustments and use the Advertising Mail Catalogue product codes; Declare, by format ,the number of items in each container by the relevant weight band (including Mixed Weight) Inform DSACC of the UCID of each new poster prior to posting Royal Mail Wholesale

What do I Need to do Next? Royal Mail Wholesale Think about how this will support your marketing plan to promote your key products What are your big products for 2017 and how can you promote them more effectively? How can you utilise the extra space more effectively to achieve a greater ROI? How can you further promote your best sellers in your catalogue / brochure? Contact your operator or Royal Mail Wholesale Account Director for further details Royal Mail Wholesale