New Zealand Post adopts pricing in proportion
New Zealand Post today announced new pricing for domestic letters and parcels which better reflects the cost of delivering these services.
Mail will be priced in direct proportion to its size and weight from 28 March 2008.
“The vast majorities of letters sent are small or medium and will not change in price. A medium letter sent Standard Post will still cost 50 cents,” said New Zealand Post’s Chief Executive Officer Postal Services Peter Fenton.
Mr Fenton says that size makes a difference to the cost of handling mail.
Mr Fenton said New Zealand Post was known internationally as a low-cost postal service and the new ‘pricing in proportion’ approach would not change this.
“A foolscap envelope (E35 sized, less than 20mm thick and weighing under 500gm) would cost NZD 5.97 to send in Australia and NZD 3.81 Second Class in the UK in New Zealand currency, but is still only NZD 2.00 in New Zealand under pricing in proportion.”
International and bulk mail services are not affected by the changes.
Parcel dimensions and corresponding prices will also change under pricing in proportion in line with the new letter prices. Already purchased existing prepaid bags and parcel tickets will remain valid.
Smaller lighter parcels will go down in price as a result.
A new range of parcels called ParcelPost™ is being introduced to replace the current packet and parcel services. The ParcelPost™ range includes new handy pre-paid bags to make sending smaller items more convenient and provides proof of delivery for an extra fee.
New Zealand Post today announced new pricing for domestic letters and parcels which better reflects the cost of delivering these services.
Mail will be priced in direct proportion to its size and weight from 28 March 2008.
“The vast majorities of letters sent are small or medium and will not change in price. A medium letter sent Standard Post will still cost 50 cents,” said New Zealand Post’s Chief Executive Officer Postal Services Peter Fenton.
“More mail will be able to be sent for 50 cents. As part of the change we’ve increased the maximum height limit for medium letters and this means more greeting cards will cost only 50 cents to post.”
Mr Fenton says that size makes a difference to the cost of handling mail.
“Large letters and parcels cost more to sort, transport and deliver so we’ve adjusted the pricing of larger items to reflect this,” he said.
“Large mail items are processed by hand, which is much more time consuming and costly than machine processing which can sort eight letters per second. It takes more effort from Posties to sort and deliver larger envelopes and parcels.”
Mr Fenton said New Zealand Post was known internationally as a low-cost postal service and the new ‘pricing in proportion’ approach would not change this.
“A foolscap envelope (E35 sized, less than 20mm thick and weighing under 500gm) would cost NZD 5.97 to send in Australia and NZD 3.81 Second Class in the UK in New Zealand currency, but is still only NZD 2.00 in New Zealand under pricing in proportion.”
“We want people to be aware of these changes because even though most people only send small letters and won’t notice a price difference, people might want to take some time to think about which envelope they’re using – it could make a difference to the postage you pay from 28 March.”
International and bulk mail services are not affected by the changes.
Parcel changes
Parcel dimensions and corresponding prices will also change under pricing in proportion in line with the new letter prices. Already purchased existing prepaid bags and parcel tickets will remain valid.
Smaller lighter parcels will go down in price as a result.
For example, the smallest sized parcel (DLE, up to 130mm x 235mm, less than 70mm thick, and under 1.5kg) will cost NZD 2.50, a dollar less than the current postage price.
Sending larger heavier parcels will cost more due to the increased cost of sorting, transporting and delivering them.
For example, an A4 sized parcel (up to 250mm x 310mm, less than 70mm thick and under 1.5kg) containing a large hardcover book would cost NZD 4.00 under pricing in proportion, rather than NZD 3.50.
A new range of parcels called ParcelPost™ is being introduced to replace the current packet and parcel services. The ParcelPost™ range includes new handy pre-paid bags to make sending smaller items more convenient and provides proof of delivery for an extra fee.
