New Zealand Post introduces new pricing in proportion system
On 28 March 2008, New Zealand Post introduced a new pricing in proportion system for all standard domestic mail. Similar to the system recently introduced in the UK this means letters and parcels sent within New Zealand are now priced in direct proportion to their size and weight. Previously parcels have been priced mainly on weight.
Motivations behind the change are very similar to that of the UK and reflect the worldwide drive for cost reflective pricing among incumbent postal operators. Previously some larger sized items of mail have been the same price to send as smaller items and this has not reflected the cost of handling them. As most of the mail that passes through our network is of a smaller size, it is fair that the postage price is in proportion to the size and weight of the item.
• larger items require manual processing (not machine processing)
• larger items require double handling by both Mail Sorters and Posties
• larger items are more costly to transport due to size
A further parallel with the UK can be seen with many standard items remaining the same price although New Zealand has not introduced a grace period for surcharging it will consider the change when assessing under paid items. The postage price for most of the standard domestic letters that go through the network remains unchanged at NZD 0.50 (USD 0.39)because most of these letters are of a smaller size.
However, a more selective brand of PiP is employed in New Zealand with the more lucrative bulk mail products escaping the new system. Bulk mail products (VolumePost, GoFlexible and PrintPost) and international products are not changing.
On 28 March 2008, New Zealand Post introduced a new pricing in proportion system for all standard domestic mail. Similar to the system recently introduced in the UK this means letters and parcels sent within New Zealand are now priced in direct proportion to their size and weight. Previously parcels have been priced mainly on weight.
Motivations behind the change are very similar to that of the UK and reflect the worldwide drive for cost reflective pricing among incumbent postal operators. Previously some larger sized items of mail have been the same price to send as smaller items and this has not reflected the cost of handling them. As most of the mail that passes through our network is of a smaller size, it is fair that the postage price is in proportion to the size and weight of the item.
• larger items require manual processing (not machine processing)
• larger items require double handling by both Mail Sorters and Posties
• larger items are more costly to transport due to size
A further parallel with the UK can be seen with many standard items remaining the same price although New Zealand has not introduced a grace period for surcharging it will consider the change when assessing under paid items. The postage price for most of the standard domestic letters that go through the network remains unchanged at NZD 0.50 (USD 0.39) because most of these letters are of a smaller size.
However, a more selective brand of PiP is employed in New Zealand with the more lucrative bulk mail products escaping the new system. Bulk mail products (VolumePost, GoFlexible and PrintPost) and international products are not changing.
