Yes, some of our prices are changing

Tuesday, July 27, 2010

It goes without saying that no-one’s going to be overly happy when prices go up, after all who wants to pay more for something? But sometimes it just can’t be avoided and that’s the position we’re in at New Zealand Post right now. Every business person understands the very simple equation that you need to charge people enough for your product to cover the costs involved in producing and delivering it.

And those costs can not only change, but those changes are sometimes out of your control. That’s the economic reality that’s facing us at New Zealand Post. Not only have we seen a decline in the amount of mail being delivered, but we’re delivering it to more mailboxes than ever. That means we’re delivering 20% less mail per mailbox than three years ago. Add in increasing fuel costs and this position is just not sustainable. We’ve already managed to strip out $30million from our costs in the last year, but that still hasn’t been enough to prevent the need for these changes.

And so, we are having to increase some of our prices. For example, from 1 October the RRP for a Standard Post medium letter stamp will go from 50cents to 60 cents (this includes the increase in GST that will apply from then too). Not all our prices are going up, for example the RRP for ParcelPost Postage Included Bags will remain unchanged and the GST increase will be absorbed.

And remember, if you have KiwiStamp postage stamps or Postage Included Envelopes which you’ve bought at the current prices, they can still be used after the increases take place without the need for any additional postage to be added.

Leaflets detailing the changes are being sent to households and box holders next week and we’re writing to our business customers to explain the changes and also to remind people to check that they are using our most cost effective services for them.

You can check out full details of all the upcoming price changes here.