Changes to the postal system are about to have a major impact on businesses and they are being warned to be ready.

The Royal Mail introduces its new Pricing in Proportion (PiP) system from August 21, which will take into account size and thickness of packages instead of just their weight.

Firms in the district who rely heavily on mail for their business, such as direct marketing firms, will be affected the most, with many potentially needing to invest in new equipment and labour.

However others say that the new system could mean reduced cost for smaller mail shots.

One business which will be affected is Shipley-based Millennium marketing, which specialises in marketing to people aged over 50.

All its marketing mail is sorted in Keighley by sister company Coltec Parker, whose managing director is Gareth Moore.

Millennium group managing director Martin Smith gave the changes a cautious welcome, saying: "It is perfectly understandable what Royal Mail is trying to achieve.

"In terms of smaller mail shots it should be beneficial as it will be slightly cheaper and may encourage clients to put a few more leaflets in. Where there are larger or unusually-shaped letters, though, there could be a rise in cost."

The Ladders Agency, based in Bradford, has already talked with clients to make sure they understand the possible impact on its marketing activity.

Lee Thawley, client services director, said: "We don't foresee a major impact on the services we provide. The very nature of our core business is direct marketing to clients' existing customers or highly-targeted prospects.

"Creativity should not be stifled, simply because impact does not always mean going big.

"The biggest impact will be on our clients that have to send bulkier items, such as posters and point-of-sale material, which supports direct marketing activity in, for example, hotels and showrooms. In these cases, clients have already switched to alternative postal providers such as TNT."

To help firms prepare, Bradford Chamber is holding an awareness breakfast next Tuesday which will provide guidance and information.

Bradford Chamber's sales and marketing manager, Andy Cullwick, said: "At the Chamber we've been working hard to understand the drawbacks and benefits and what effect these changes will have to our own business.

"Businesses will need time to prepare themselves, implementing new mailing styles and ensuring they have the right postal stationery in place long before the August deadline."

The event at the Midland Hotel from 7.30am to 9am will be presented by Postwatch Northern Committee member Malcolm Bullough. To book a place call (01274) 206660.

e-mail: mark.casci@bradford.newsquest.co.uk