Questions and answers for price and product change 2017

What changes happened?

On 1 July 2017, we adjusted the price of some of our products and services.

Key changes are:

FastPost
FastPost has increased by 50c (from $1.80 to $2.30) for medium and related sizes

Domestic Parcels
Domestic Parcel products, including CourierPost and Pace has increased by 2.55%

ParcelPost Rural Delivery Surcharge
The rural delivery surcharge for Tracked, Courier and Courier Signature parcels has increased from $3.20 to $3.70

ParcelPost Saturday Delivery Surcharge
The Saturday delivery surcharge for Courier and Courier Signature parcels has increased from $4.70 to $4.90

International Air (Par Avion)
International Air (Par Avion) parcels under 2 kg (all zones) has increased by an average of 4%

International Express Courier Parcels
International Express Courier parcels Rest of the World (Zone E) has increased by 10%

International Express Courier Documents
International Express Courier documents (all zones) has increased by 5% for items weighing 0.5kg to 1 kg inclusive

International Express Courier documents Rest of the World (Zone E) has increased by 10% for items over 1 kg

Poste Restante
Poste Restante storage costs has increased to be aligned with Hold My Mail charges.

Bulk Mail
VolumePost 1, VolumePost 3, GoFlexible, PrintPost, PrintPost Samples & PrintPost Weekly, Volume PreSort, Print PreSort and Adcard has increased by 5%

When did the new rates take effect?

1 July 2017

Why have you increased the price of FastPost postage again?

FastPost is an expensive service to provide and the price rise reflects our costs in maintaining it. In our larger cities and towns, we need additional and dedicated resource to deliver FastPost mail that falls on non-delivery days for customers where alternate delivery days have been introduced.

We have worked hard to keep the price of posting mail as low as possible. We’ve significantly reduced our network costs and made some big changes to how we operate. However, with increasing costs and a decline of approximately 60 million letters through our network every year, we also need to increase the price of postage from time to time.

Will increasing the price make mail volumes decrease faster?

Pricing is just one aspect. Changes in the way people communicate are mostly being driven by the availability of email, texting, and other digital communications. This is a worldwide trend and we expect letter volumes to continue to fall. Our priority is setting up the network for the future and growing parcel volumes, both domestically and internationally.

Are letter volumes still falling?

Yes. At a rate of around 11% in the last year and we expect this to increase. That’s about 60 million fewer letters every year. People and businesses are increasingly using technology like email, smartphones and texting for their everyday communication.

Why are you putting up your prices when you made a profit in the last six months?

The vast majority of our recent profit is due to the partial sale of Kiwibank and a strong performance of our parcels business. We still have a lot of work to do to get our mail and logistics business on a sustainable path. Our focus on lowering costs will continue, as will our drive to grow parcel volumes.

Price rises are needed to keep pace with our higher costs and to reflect changing customer demand for our products and services. Along with declining letter volumes, the increase in the number of people living in New Zealand and having 1.98 million delivery points is all putting pressure on our resources. We have an obligation to provide a universal mail service to Kiwis no matter where they live, and to do this we need to increase our prices.

How can you increase prices and decrease delivery service? (I’m paying more for less)

It’s important to know that we’ve not decreased our delivery service. Delivery frequency has changed to three days a week in larger towns and cities but our customers still receive their Standard Post mail within three working days and priority FastPost mail the next working day between major towns and cities as they always have. Due to transport schedules, the delivery target for FastPost from some major towns and cities to particular other major towns and cities on some days is two working days.

Are there new stamps for FastPost?

Yes, new stamps have been created for $2.30 and $4.30. However, customers can continue to use a mixture of denominations to make up the price they need for their mail.

Has the cost of sending a parcel within New Zealand increase?

The price of sending parcels using a CourierPost or Pace service within New Zealand has increased by 2.55%. This mostly affects our business customers. Some international parcel prices also increased on 1 July.

Why have you put up some international parcel prices?

Our international products are part of a global network of postal operators and we don’t have control over these costs. When our international partners put up their prices we have to pass them on.

Where can I find out how much it will cost to send an item from now?

All pricing is available on the New Zealand Post website www.nzpost.co.nz/july2017

How will the price rise affect KiwiStamps?

KiwiStamps have retained their value. You are able to use any KiwiStamps you have already purchased for Standard Post without paying any more postage.

For FastPost, you can use a KiwiStamp and add an additional denominated stamp to make up the postage for the required amount. For example:

Medium FastPost letter: 2 x KiwiStamp + $0.30c stamp
Large FastPost letter: 3 x KiwiStamp + $0.30c stamp
Oversize FastPost letter: 4 x KiwiStamp + $0.30c stamp

Can I still add two KiwiStamps to my standard medium letter to send it FastPost?

Yes, you can. However, you will need to also add a $0.30c stamp for the $2.30 postage required.

Has the rural parcel surcharge fee increased?

Yes. The rural delivery surcharge cost has increased from $3.20 to $3.70 for NZ Post retail services sent through the NZ Post network.

Has the Saturday Delivery surcharge fee increased?

Yes. The surcharge for Saturday Delivery has increased from $4.70 to $4.90 for NZ Post retail Courier and Courier Signature parcels sent through the NZ Post network.

Haven't you just re-engineered your delivery network to remove significant costs?

We’ve taken out significant costs over the last few years and that’s been very successful. Whilst we will continue to do this and work more efficiently, being more productive alone will not be enough to maintain a national postal service for Kiwis no matter where they live. Like all organisations, we have to regularly review the costs of our products and services.

Has Standard Post increased?

No. The cost of sending a medium sized letter by Standard Post has remained the same, and is $1.

How do I talk to someone about this? Who do I call to make a complaint?

Customers can phone the National Contact Centre on 0800 501 501.