Changes to our rates and services from 1 July 2020 - questions and answers

Questions and answers about changes to our rates and services

You can also contact your NZ Post Business Manager or our National Call Centre for assistance.

1. What is Bulk Mail?
2. What is Zonal Pricing?
3. What postcodes sit in each zone?
4. How is Zonal Pricing applied to Bulk Mail lodgements?
5. What will happen to the existing volume tiers on Adcard?
6. What is a Lodgement Data File?
7. What can we do to ensure lowest charges for a lodgement?
8. How will this impact us if we lodge mail without a mailhouse?
9. What is happening to the Statement of Accuracy process?
10. What does the new IPC code mean?
11. When will the new AAP process be introduced?
12. What happens if a portion of the mail sent in a lodgement does not include a postcode?
13. How is the data we supply going to be used?
14. How do I estimate the cost of postage for mailouts that fall under VolumePost and GoFlexible?
15. Is the postage charge based on where the mail is sent from?
16. Will Zonal Pricing have any impact on Statement of Accuracy (SOA)?
17. Can we test our Lodgement Data Files before 1 July 2020?
18. Does Zonal Pricing apply to PrintPost and Adcard?
19. Who is going to support the testing and introduction of Zonal Pricing?
20. What other changes have been made to Bulk Mail besides Zonal Pricing?
21. How does the new pricing work for PrintPost evening lodgements?
22. How does the new pricing for PrintPost Samples work?
23. Who should contact if I still have questions?

1. What is Bulk Mail?
Bulk Mail is a category of mail that meets specific NZ Post criteria to ensure efficient processing and as a result attracts lower pricing. It is usually (but not always) produced on behalf of an organisation by a specialist mailhouse that deals with large or complex mailings.

2. What is Zonal Pricing?
Zonal Pricing is NZ Post’s 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 attract a different delivery price. Zonal Pricing is applied to Adcard, VolumePost and GoFlexible products.

3. What postcodes sit in each zone?
The Zonal Pricing postcode list (PDF - 48KB) is available.

4. How is Zonal Pricing applied to Bulk Mail lodgements?
From 1 July 2019, a Lodgement Data File has been required to be submitted 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 will achieve more consistency across Bulk Mail services and enable NZ Post to continue to align prices with the delivery costs and improve our competitiveness.

The key points to note are as follows:

  • 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 customers to upload the Lodgement Data File automatically through an API process.

5. What will happen to the existing volume tiers on Adcard?
Zonal Pricing will replace the volume tiers on Adcard on 1 July 2020.  Further details for the Adcard product can be found in the Adcard Product Specification.

6. What is a Lodgement Data File?
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 the 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 deemed as invalid postcode (IPC) items and will attract the highest zone price point).

7. What can we do to ensure lowest charges for a lodgement?
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 lowest price. The destination of the mail items will be the main determinant of the price.

8. How will this impact us if we lodge mail without a mailhouse?
To continue to access the most competitive mail rates you will need to be able to supply the Lodgement Data File with your lodgement. In most cases this should be a relatively straightforward task to complete. However, if you do need assistance, please contact your NZ Post Business Manager or our National Contact Centre.

9. What is happening to the Statement of Accuracy process?

An annual SOA assessment is currently required for each customer to lodge Bulk Mail.

From 1 July 2020, the requirement to submit a Lodgement Data File (LDF) will apply to all Bulk Mail services to support the changeover to the new AAP (Address Accuracy Percentage) process, to be effective 1 February 2021. An LDF is currently required for all VolumePost and GoFlexible lodgements so this requirement should not be a significant change for most customers. Mailhouses and SendRight programme partners have been advised of these changes. Please ensure your mailhouse/internal lodgement team can meet these requirements before 1 July 2020. If there are any issues, please contact us in advance, as soon as possible.

10. What does the new IPC code mean?

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 at VolumePost and GoFlexible lodgements at Zone D prices.

11. When will the new AAP process be introduced?

When the AAP process replaces the SOA process on 1 February 2021 the AAP will be calculated only on records with valid postcodes (records charged the IPC price will be excluded from the assessment.

“AAP” columns will replace the “SOA” in the rate cards from 1 July 2020 but SOA will still apply until 31 January 2021.

12. What happens if a portion of the mail sent in a lodgement does not include a postcode?
Mail items that do not include postcodes will, by default, be allocated the highest cost delivery tier (IPC). Please see our lowest charges question for more detail.

13. How is the data we supply going to be used?
Once the Lodgement Data File has been uploaded 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 NZ Post, there are no privacy or security concerns for your customers.

14. How do I estimate the cost of postage for mailouts that fall under Adcard, VolumePost and GoFlexible?
Customers can use the rate card and Zonal Pricing information to estimate the cost of postage for a lodgement. NZ Post has developed a facility for files to be submitted electronically, allowing you to determine postage costs under the Zonal Pricing structure.

15. Is the postage charge based on where the mail is sent from?
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.

16. Will Zonal Pricing have any impact on Statement of Accuracy (SOA)?
No, your SOA will not be impacted by Zonal Pricing. SOA will remain as a price differentiator on the Domestic Bulk Mail Rate Card (PDF - 60KB).

17. Can we test our Lodgement Data Files before 1 July 2020?
Yes, the ability to upload files in Lodgement Manager is available for you to test your files.

18. Does Zonal Pricing apply to PrintPost?
Zonal Pricing will not apply to the PrintPost Bulk Mail product in 2020.

19. Who is going to support the testing and introduction of Zonal Pricing?
Please contact your NZ Post Business Manager or our National Call Centre for assistance.

20. What other changes have been made to Bulk Mail besides Zonal Pricing?
We have also rationalised the pricing for PrintPost lodgements by removing the volume tiers. The minimum volume of 1000 mail items still applies. In addition, the new IPC pricing tier will be introduced for records with a missing or invalid postcode. This will require you to submit an LDF (Lodgement Data File) with each PrintPost lodgement. For more information, please refer to the PrintPost product specifications (PDF - 71KB).

21. How does the pricing work for PrintPost evening lodgements?
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).

22. How does the pricing for PrintPost Samples work?
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).

23. Who should I contact if I still have questions?
Please contact your NZ Post Business Manager or our National Call Centre for assistance.