The postal industry has changed significantly over the past decade. As the use of electronic communication increases each year, the number of letters sent continues to decline. This has had a significant and ongoing impact on our business and COVID-19 has only heightened this.
Below are some FAQs to help navigate through the changes that apply from 1 July 2020.
Quick links to key information on this page:
The postal industry has changed significantly over the past decade. As the use of electronic communication increases each year, the number of letters sent continues to decline. This has had a significant and ongoing impact on our business and COVID-19 has only heightened this. Whilst we focus on keeping costs to a minimum and are always looking for innovative ways to provide our mail service more efficiently, we have a responsibility to deliver a sustainable mail service for New Zealand and do need to review prices annually.
The following Standard Mail product will have a price increase that will apply from 1 July 2020:
- Standard Post
- Priority Business Mail
- Postage Included Envelopes
- Business Mail Centre Services
Please refer to the Standard rate card for pricing.
We don’t recommend using multiple KiwiStamps for larger letters as the value of KiwiStamps will be increasing from 1 July 2020 to $1.40 each which means, if you use multiple KiwiStamps, you’d be paying more than required. For larger letters, our recommendation is to use a KiwiStamp, plus a stamp of a fixed amount to add up to the postage value you need. E.g. The cost to post a Standard Post Large envelope is $2.70, if you use 2 x KiwiStamps, you’d be paying $2.80. By using 1 x KiwiStamp ($1.40) plus a $1.30 stamp, you save 10 cents.
Unfortunately, use of the BoxLink service has reduced greatly over the last few years, making it difficult to retain as a financially viable product. Therefore, we’ve reluctantly decided to end our BoxLink services from 1 July 2020.
If you still have any pre-purchased BoxLink envelopes and postage after 1 July 2020, you can continue to use these as Standard Post. Our Standard Post service will deliver your mail across town and between major towns and cities in the usual, efficient timeframes.
The table below shows how BoxLink pricing compares to current Standard Post pricing.
New pricing from 1 July 2020
Recycled padded postage included bags
In April, we introduced two new recycled padded bags as part of our core domestic postage included bag range. Made from recycled paper, the bags are 100% recyclable and just as tough and water resistant as our current plastic bubble bags under normal packaging use.
From 1 July 2020, a price increase will apply to the size 2 and 4 recycled padded bags.
- Size 2: Old price $5.50 - New Price: $5.90
- Size 4: Old price $8.00 - New Price: $8.60
They are made of 100% recycled newspaper and magazines.
Yes, they are fully recyclable and can be put into your local kerbside recycling bin.
No, this is because of the waxy coating on the recycled magazines used which does not break down in compost.
Made from recycled paper, the bags are 100% recyclable and just as tough and water resistant as our current plastic bubble bags under normal packaging use.
Flat postage included bags
Yes. The following flat postage included bags will be transitioned from virgin plastic to recycled plastic postage included bags when current stocks run out. There are no price or purchasing process changes to these products.
- PREFDL18 - Size 1 Postage Included Bag (fits DLE)
- PREFC518 - Size 2 Postage Included Bag (fits C5)
- PREFC418 - Size 3 Postage Included Bag (fits C4)
- PREFFS18 - Size 4 Postage Included Bag (fits Foolscap)
- PREFLF18 - Size 6 Postage Included Bag (fits Lineflow)
The white speckles are imperfections due to the limitations of the current recycling process when recycled plastic material is used. Strength tests show that these bags perform to NZ industry standards. As technology improves, we’re likely to see these imperfections disappear.
Bubble postage included bags
Size 2, 3 and 4 plastic bubble postage included bags (PREB18) will be discontinued. However, you will be able to purchase our new recycled paper padded postage included bags in size 2 and 4. You can continue to purchase the plastic bubble postage included bags while stocks last.
- PREBC518 - Size 2 Bubble Postage Included Bag
- PREBC418 - Size 3 Bubble Postage Included Bag
- PREBFS18 - Size 4 Bubble Postage Included Bag
From 1 July 2020, the annual rental fee for our PO Boxes will increase by $10 (including gst). This is the equivalent of $0.83 a month.
We have a responsibility to deliver a sustainable mail service for New Zealand, and whilst we focus on keeping costs to a minimum, we need to review prices annually. The decision to increase prices this year was not made lightly given the COVID-19 pandemic and the unprecedented challenges that our business and many others throughout New Zealand are facing.
The new annual rental fee will apply from 1 July 2020. However, if you are an existing box holder, the new prices will apply at the time of your next annual renewal.
If you pay by direct debit, the $10 price increase will be spread evenly across your quarterly direct debit payments ($2.50 per quarter) from your first payment following 1 July 2020.
Bulk Mail is a category of mail that meets our specific criteria to ensure efficient processing and as a result, pricing is lower. It is usually (but not always) produced on behalf of an organisation by a specialist mailhouse that deals with large or complex mailings.
Zonal Pricing is our pricing structure that applies to certain Bulk Mail products and charges different prices for mail delivered to different areas. Four pricing zones will be introduced, defined by postcodes, and each zone will have a different delivery price. Zonal Pricing applies to Adcard, VolumePost and GoFlexible products.
From 1 July 2019, you were required to submit a Lodgement Data File with each physical VolumePost and GoFlexible lodgement via the online ‘Lodgement Manager’ system. From 1 July 2020, we are extending Zonal Pricing to Adcard. This is to help with consistency across Bulk Mail services and enable us to continue to align prices with the delivery cost.
- Zonal Pricing will be introduced to Adcard and will continue for GoFlexible and VolumePost. Each zone will have a different price.
- Zonal Pricing is being added to SOA4/AAP4 (previously SOA4 – Below 80%). SOA4/AAP4 previously had the same price point across all four zones. From 1 July 2020, SOA4/AAP4 will have a separate price point for each zone.
- A feature of Lodgement Manager allows you to upload the Lodgement Data File automatically through an API process.
The Lodgement Data File contains addressing information of each mail item in an Adcard, VolumePost, GoFlexible or PrintPost product postal lodgement. This file is integrated at lodgement time by NZ Post. The postcode for each mail item (based on the addressing information supplied in the Lodgement Data File) is assessed to determine which zone applies to that mail item and the total cost of postage is then calculated on that basis. Note that mail items that do not have a postcode, or that have an incorrect postcode, will be considered invalid postcode (IPC) items and will be charged the highest price point.
From 1 July 2020, you are required to submit a Lodgement Data File (LDF) and this will apply to all Bulk Mail services to support the changeover to the new Address Accuracy Percentage (AAP) process. An LDF is currently required for all VolumePost and GoFlexible lodgements so this should not be a significant change for most customers.
Having a high Statement of Accuracy (SOA) and ensuring all addresses have a correct postcode included is the best way to ensure your lodgement is charged at the lowest price. The destination of the mail items will determine the final price.
Being able to supply the Lodgement Data File (LDF) will give you access to the most competitive mail rates. In most cases, this should be a simple task to complete. However, if you do need assistance, please contact your Business Manager or contact our National Contact Centre.
Currently, an annual SOA assessment is required for each customer to lodge Bulk Mail. This assessment determines the accuracy of your mail addressing and assigns your SOA level for the next 12 months, which in turn determines the price of your lodgement items. This requirement and the process associated with it is being removed on 30 June 2020 and will be replaced with the Address Accuracy Percentage process.
Mail houses and SendRight programme partners have been advised of these changes. Please ensure your mail house/internal lodgement team can meet these requirements before 1 July 2020. If you require assistance, please contact your Business Manager, as soon as possible.
From 1 February 2021, the address quality of Bulk Mail will be assessed for each lodgement, replacing the current SOA process. Each Bulk Mail lodgement will be assessed using the Postal Address File standards and valid postcodes. An AAP will be calculated to determine the Bulk Mail pricing tier to be applied. Items with invalid postcodes (IPC) will be excluded from the AAP assessment to avoid a double pricing penalty.
The AAP process replaces the SOA process on 1 February 2021.
'AAP' will appear alongside 'SOA' in the rate cards from 1 July 2020, but SOA will still apply until 31 January 2021.
A new pricing tier will be introduced to all Bulk Mail rate cards labelled 'IPC' (invalid post code). Mail items with missing or invalid post codes will be charged this price. These records are currently charged for when lodging VolumePost and GoFlexible lodgements at Zone D prices.
Mail items that do not include postcodes will, by default, be charged the highest cost delivery tier (invalid post code). Having a high Statement of Accuracy (SOA) and ensuring all addresses have a correct postcode included is the best way to ensure your lodgement is charged at the lowest price. The destination of the mail items will determine the final price.
Once you have uploaded the Lodgement Data File (LDF) into Lodgement Manager, along with the normal lodgement information (e.g. product and volume), the system will calculate the volume for each zone and assign the correct pricing for the lodgement. It’s important to note that as there will be no identifiable customer data being shared with us, there are no privacy or security concerns for your customers.
How do I estimate the cost of postage for mailouts that fall under Adcard, VolumePost and GoFlexible?
You can use the rate card and Zonal Pricing information to estimate the cost of postage for a lodgement. We have developed a system for files to be submitted electronically, allowing you to determine postage costs under the Zonal Pricing structure.
No, Zonal Pricing charges will be determined by the zone that the Bulk Mail items are being sent to (the destination). Zonal Pricing charges are not based on the origin of the item.
SOA will remain as a price differentiator on the Domestic Bulk Mail Rate Card (PDF - 60KB). Zone D pricing will be differentiated by SOA/AAP tiers from 1 July 2020. Previously a flat rate applied to Zone D items. Further, From 1 July 2020, SOA4/AAP4 will have a separate price point for each zone. Previously, a flat rate applied across all zones.
Yes, the ability to upload files in Lodgement Manager is available for you to test your files.
Zonal Pricing will not apply to the PrintPost Bulk Mail product in 2020.
From 1 July 2020 the lodgement volume tiers for PrintPost and Adcard will be removed. The only volume requirement will be the 1000 item minimum threshold. In addition, the new invalid post code pricing tier will be introduced for records with a missing or invalid postcode. You will be required to submit a Lodgement Data File (LDF) with each PrintPost lodgement. For more information, please refer to the PrintPost product specifications (PDF - 71KB).
PrintPost lodgements made after 5pm on weekdays, or at any time on a weekend or public holiday by prior arrangement with your local Mail Service Centre Manager, will be charged a flat rate fee of $0.28 (excl GST) per item in addition to the normal card rate fee applicable to the lodgement. Further details for the PrintPost product can be found in the PrintPost product specifications (PDF - 71KB).
PrintPost lodgements that include a sample, in accordance with the product specifications, will be charged a flat rate sample fee of $0.40 (excl GST) per item in addition to the normal card rate fee applicable to the lodgement. The PrintPost Sample fee applies if a sample is included with a publication and this takes the combined thickness into the 20mm–32mm range. Further details for the PrintPost Sample product can be found in the PrintPost product specifications (PDF - 71KB).