This is a classic case of paying attention to what isn't being said.
However, thanks to recent increases in charges, and a five-year $85 million investment in new mail processing facilities, the domestic letters business remained profitable, unlike similar services overseas including Australia, Allen said.
A further rise in the standard domestic letter rate, which rose 5c to 50c last year, was unlikely for some time, he [NZ Post chief executive John Allen] said.
This is a statement from last Wednesday.
Sure enough. When I went to buy stamps for my business this morning the postage charge for a standard envelop had not gone up. Unfortunately I use more by way of A4 size envelopes so you can imagine my disbelief when I was told that instead of $1 stamps they would now require $1-50 stamps.
"Do you think I could get away with putting my prices up 50 percent?" I enquired of the somewhat apologetic assistant.
Of course I couldn't. While I am in the position of providing a monopoly service people do not have to use it.
It's an outrageous price hike which will cost certain businesses dearly.
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2 comments:
Lindsay, the market IS open - the barriers to entry are low (courier companies can all deliver mail).
You're not suggesting the government do anything about it are you?
I didn't say it wasn't open. But NZ Post retains a monopoly position on letters and is now exploiting it. I can rail against a private company doing the same. Perhaps the more noise customers make the more likely a potential competitor is to see an opportunity. Certainly heavy users of parcel post can find alternatives if competitors offer a better price.
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