NZ Post prices to rise
The cost of sending letters and parcels is going up as the volume of mail continues to fall sharply, New Zealand Post says.
The cost of sending FastPost mail within New Zealand will increase 50 cents from July 1.
The cost of sending a medium-sized letter will increase from $1.80 to $2.30(cheque-sized), a large letter (165mm x 235mm) from $2.80 to $3.30, and an oversize item (A4-sized) from $3.80 to $4.30. Standard Post prices will not change.
Letter volumes decline at a rate of about 60 million items a year, NZ Post said.
The drop in mail volume had an impact on revenue, despite NZ Post's efforts to reduce cost.
In 2017 there are not nearly as many businesses relying on the postal service as there used to be, though businesses that do are given cheaper deals by NZ Post.
Despite higher mailing costs, the amount of junk mail was not expected to reduce, as most businesses that send out bulk mail received deeply discounted postal rates.
Marketing Impact managing director Alan Hard said high volume postage had one of the lowest price increases in years.
"No one likes a price increase, but as a big player in the mail space, I feel NZ Post has got this largely right."
He said energy companies, retailers, telcos, insurance companies, banks and charities were all big users of the postal service, and most of these would not be affected by the increase.
Freedom Wedding Stationary managing director Dan Wheeler said he would still be using the mail for years to come.
His business mails out around 50 envelops a wedding, though it can be hundreds for a big wedding. He said he had no need for FastPost.
"They'll get there before the wedding on standard prices."
Co-owner of Direct Mail Solutions Josh Lindsay said the price hike would not affect his business because it paid bulk rates. The company mails on behalf of small businesses nationwide and in Australia.
Lindsay said his business mailed up to 10,000 letters at a time for some businesses.
There has been a decline in business over the years, however it seems to be picking up recently, said Lindsay.
A drop in invoice mailing was partially responsible for the decline, but the amount of marketing material the company mailed out was on the rise.
"Your inbox gets so bombarded so to achieve any kind of cut-through [companies are] looking at the mailbox."
Owner of Auckland Debt Collectors Colin Smith said his business' use of the mail was limited compared to what it used to be.
"It used to be you'd mail the letter for 50c and now it's up around that … it'll drive everyone online."
Smith said he thought the move would be business suicide for NZ Post.
"It certainly does affect everyone."
But he plans to continue using the service.
"We just do whatever we need to to be able to get in touch with people," he said.
There will also be a 2.55 per cent increase for all domestic parcel products and services for commercial accounts, including CourierPost, Pace, and ParcelPost.
Postage prices last went up in July 2015.
Saturday delivery surcharges will increase 20c, and the rural delivery surcharge will increase 50c.
International Express Courier products will rise up to 10 per cent for items over 1 kilogram, all products under that weight would increase by $5.
Written by Julie Iles. First appeared on Stuff.co.nz. Image credit: Lauren Hayes/Fairfax Media/Stuff.co.nz