Aust Post Letter Fees to Increase to $1 and Take Two Days Longer to Deliver

benjamin on 05/03/2015 - 00:52
Last edited 05/03/2015 - 00:55

Have a look at the fact sheet for the changes, set to come into effect sometime after Sept 1st

http://auspost.com.au/media/documents/Reform-Fact-Sheet.pdf

Also, an interesting news article:

http://www.smh.com.au/federal-politics/political-news/abbott…

"Mr Fahour also defended his salary of $4.6 million a year - the highest paid public servant in Australia - saying 75 per cent of Australia Post's activity was commercial logistics and it was a "highly successful business". The latest annual report revealed 409 managers and executives at Australia Post were earning more than $195,000 a year"

General Discussion

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Comments

        • JimmyF on 09/03/2015 - 13:22

          It is…. and sometimes things go missing, are damaged, stolen from the front door AFTER delivery. This is why you have insurance on items. Tracking isn't insurance.

    • Associatedl7unningMan @ Australia Post on 08/03/2015 - 13:01

      Unlikely but not impossible that your iphone was stolen at a parcel center (too many people watching) more likely lost or missorted. Where your parcel is likely to get stolen is through an underpaid delivery contractor or postie on a bike. If someone is busted stealing letters on your run you will be notified and parcel contractors and posties have been busted stealing mail. Don't send cash in the mail.

      Always fill in a green form at your local PO or ring customer service quoting the tracking number if your parcel goes missing.

  • weeenis on 06/03/2015 - 12:19
    +7

    The best decision they ever made was introduce the 24/7 Parcel Lockers - Those things are are ingenious !! and allows to the bypass Australia Post crap customer service

    • happychild100 on 06/03/2015 - 12:56
      +2

      Totally with you there, don't have to waste time trying to get to my 'local' PO on the other side of my suburb during 9-5 on weekdays, so much better being able to walk down the road to GPO with a parcel locker.

  • ronnknee on 06/03/2015 - 12:27
    +1

    This is pretty much the same as ISPs in America wanting to throttle internet speeds and have users pay more to have their current speeds. Scums.

    • rapoot6 on 06/03/2015 - 13:36
      +4

      At least you can choose between them. Here we're stuck with aus post

  • [Deactivated] on 06/03/2015 - 15:13
    +2

    I think we are going the way of France. There won't be any post offices soon, and only courier services.

  • T1OOO on 06/03/2015 - 17:03
    +5

    Deliver mail once a week. Things should b done online. That's what's killed their business. Bills via email.

    • inherentchoice on 06/03/2015 - 22:48

      Shh don't say that. It might put all those execs out of work.

    • Azn310 on 10/03/2015 - 02:01

      They have digital mailbox teamed with billing companies and government agencies. They know the evolving changes and they are working with it. If they go bust, at least they tried.

      • T1OOO on 10/03/2015 - 05:05

        Their the middle man. U know the story …. Cut out the middle man. Focus on delivering stuff I order from the net!!

  • Schezwon on 07/03/2015 - 00:31
    -2

    Doesn't bother me, have not sent mail out for years, we do have emails and messenger these days, unless your still in the WW2 era.

    • GnarlyKnuckles on 07/03/2015 - 02:38
      +2

      OK Mr Hot-sauce, but can you appreciate that some peeps other than you may actually get stung pretty badly if the cost of sending a letter suddenly jumps dramatically without much warning (numerous small businesses etc.)? And can you appreciate that any business whose services you are currently paying for will pass any increased costs of doing business on to you; even if you personally have opted out of receiving snail-mail?

  • centrelink on 07/03/2015 - 14:42

    As a seller, this is quite a huge hit. I sens alot of items at letter rates. I have to make deals with suppliers in order to keep the profits correct.. Soon it will be too high I will have to adjust price.

    Must say, its quite annoying.

  • Associatedl7unningMan @ Australia Post on 07/03/2015 - 19:02
    +7

    Just to frame the discussion and reduce misinformation(I don't have an opinion just trying to get facts out there):

    *AusPost is a government business not a taxpayer funded government service, therefore it is currently run for a profit and pays a dividend to the federal government.

    *AusPost has a monopoly over the no longer profitable letters service (and only the letters service) and is legally required to deliver to regional communities. Parcel services currently cover that loss and help to make a net profit of around 110 mil, with 79 mil going back to tony (2013/2014 financial year).

    *Parcels are very profitable thanks to online shopping, but face increasing competition. (Toll, DHL, FedEX, Fastway, etc) AusPost does have the best position in the market due to its infrastructure and assets, but it's difficult to remain competitive when competitors do not have to fund an unprofitable letter service.

    *The concern is that if current trends continue AusPost will cost the taxpayer over 6 billion over 10 years due to declining letter volumes, as it is a high fixed cost business. (Boston Consulting Group research study) Currently AusPost is about to hit net loss territory in the next few years, this is why the stamp price is going to jump to $1 in September.

    *The CEO is paid significantly above what other CEOs are paid because stock options can't be built into his pay package. (I don't have an opinion on this and I'm not an expert) Given many changes in the organisation over recent years and a lot of redundancies, opinons on the CEO and senior management performace are… mixed.

    *International postage is expensive and controlled heavily by the Universal Postage Union's archaic system. UPU is a UN body that sets prices for delivery of international mail/parcels once they have left the sender's country and entered the adressee's country. (I don't know much about the UPU its way above my pay grade, look it up.)

    This is my two cents, make of it what you will, disagree or disprove it as you see fit.

    About the Source:
    An interested idiot behind the counter at one of your local POs ;).

    • RockyRaccoon on 07/03/2015 - 19:39

      The real problem for Aust post just like it was/is for Telstra. is that as you say the city deliveries subsidise the country deliveries, rather than saying here, is a USO and we the government will pride the funds for that.

      Works well if the organisation makes a profit, but as the margins get slimmer and parcels are the only way to get the funds for this subsidy then the price of parcels becomes excessive. And not only does AP lose, so do Australian businesses as its often far cheaper to get from OS (China etc) where they can provide free shipping which as you say under UPU is effectively also subsidised by AP

    • GnarlyKnuckles on 08/03/2015 - 00:15
      -2

      " … is about to hit net loss territory in the next few years, …"

      Was this a typo, or is that actually what you intended to write? "About to" and "in the next few years" are very different things; so it makes no sense, as you've written it. If you are suggesting that OzPost is going to massively increase the cost of sending a letter now, because they have predicted that in 'a few years' the current situation may become unprofitable, that is ridiculous.

    • Associatedl7unningMan @ Australia Post on 08/03/2015 - 12:07
      +4

      Sorry Gnarly I'll clarify, what I meant was exactly what you thought I was suggesting. The letters business as a segment of the entire AusPost business has been losing money consistently despite stamp price increases. Letter volumes peaked around 2008. AusPost has recorded a net loss for the letters business as follows, 2010 -$250 mil, 2011 -$66 mil (stamp price increase from 55c to 60c), 2012 -$114 mil, 2013 -$198 mil and 2014 -$242 mil (stamp price increase from 60c to 70c)

      This is based on AusPost's own modelling and keep in mind that it doesn't matter if you get 10 letters or 1 letter a day, the postie still has to ride the same distance everyday.

      AusPost as a business has been consistently recording an after tax profit as follows 2010 $89 mil, 2011 $241 mil, 2012 $281 mil, 2013 $177 mil and 2014 $116 mil.

      What they are suggesting is that the cost of letters is going to increase rapidly so that the losses in the letters segment of the business will overtake the profits of parcels and Australia Post will start recording a net after tax loss within the next few years.

      BCG's modelling is predicting that the combined total of the recorded losses over the next 10 years will be over 6 billion. This means that instead of making say 50 million, 100 million or 200 million to pay off the budget every year, AusPost will instead cost the taxpayer over 6 billion dollars over a 10 year period. (Keep in mind that BCG's modelling is a forcast and would be based on the assumption that the government sticks their head in sand when AusPost begins to record a loss)

      My numbers were from the latest financial report 2013/2014, they have adjusted the numbers from earlier years which is a little suspect.

      Hope that clears things up.

      • GnarlyKnuckles on 09/03/2015 - 00:58

        "Hope that clears things up."

        Chuckle, it's an excellent contribution to the growing body of information in this thread, and I'm very grateful for your ongoing contributions herein. It's great to have an 'insider' contributing so extensively/informatively.

        But as for 'clearing things up'… wow hombre, there's so much to think about in that post/those numbers/projections/details, that it will take me quite some time to digest it, let alone form an opinion of my own on it!

        Really good info though, cheers.

  • Bargain Meister on 07/03/2015 - 20:15
    +1

    Japan/Australia Free Trade agreement 2014
    Toll Holdings takeover offer on table from Japan Post
    Toll Holdings one of the main Aust Post parcel competitors
    Japan Post one of the largest community banking organisations in Japan
    Aust Post in line for privatisation.

    Maybe I like conspiracy theories.

    • RockyRaccoon on 08/03/2015 - 09:38
      +1

      For the non conspiracists here - what is exactly the theory you "conspire" to? Or is it to remain hidden like many other conspiracies?

      Like Is it Japan is conspiring to conquer Australia?

      "please explain" (with apologies to the Hansonists out there)

  • MrBillions on 08/03/2015 - 00:05
    +3

    These high fees make it very difficult for ecommerce businesses to compete.

    How to compete when parcel rates from China are $0.05 and we pay here more than $7.20 for a parcel up to 500g.

    • GnarlyKnuckles on 08/03/2015 - 00:29
      +1

      Quite right drb. Every time I receive something from Hong Kong that I bought for a total of less than $1, with 'free postage', I feel sorry for anyone actually based in Australia trying to compete; they have no hope. It's completely bizarre that it costs some poor sap a few suburbs away from me more to send me a parcel via OzPost than it costs someone in Hong Kong to send me that same parcel!

      • RockyRaccoon on 08/03/2015 - 09:42

        Maybe it's the conspiracy that Bargain Meister is referring to

        A plot to nationalise businesses! By forcing them out of business and having Australia Post Offices supply all services as they are the only ones who can afford the postage.

      • Azn310 on 10/03/2015 - 02:32

        Just a reminder that the parcel you bought from Hong Kong is also processed and deliver in Australia by ozPost. Effectively, not only Australian businesses are losing, OzPost loses as well when they deliver you that parcel. It is insane, but what can ozPost do? Should they charge the addressee the $7.15 (or $7.40) difference to keep the postage fair for Australian businesses?

        And also, if you are unhappy with the purchase from Hong Kong, you can put it back in the satchel / box it came with, cross your name out and write R.T.S, pop it in the red box, double the loss for OzPost.

        And another fun fact, most Chinese in Australia wouldn't use ozPost to send parcels to china, they have their own express freight company. So ozPost lose when parcel come in, they also lose when parcel come out of Australia.

    • Associatedl7unningMan @ Australia Post on 08/03/2015 - 12:10
      +2

      Good news the 7.20 you were quoting has gone up to 7.45 as of 2/3/15. The price for parcels placed on the scale and assessed has gone up and the price of 5kg red and yellow prepaid satchels has gone up.

      • tikei on 10/03/2015 - 12:28

        Talk about prepaid satchels, I registered for parcel collect and a my post card during the promo period that auspost was including a complementary express post satchel. The card came but the satchel never did. Emailed them twice but was ignored.

        • Azn310 on 11/03/2015 - 01:32

          IIRC, the express satchel came with the card. It was folded up in a plastic sleeve, so looks small.

  • umoddbro on 10/03/2015 - 02:10
    +1

    At this point we should just start an Ozbargain Post..

    • Azn310 on 10/03/2015 - 02:40

      You can be the CEO, here's your upfront monthly salary of $353,000

      • BuyoTheCat on 11/12/2015 - 15:08
        +1

        I will do it for $350,000

  • Shadow54 on 15/03/2015 - 14:45

    I used to work for Australia Post (25 years old) and they seemed to know what they were doing and by and large the public was happy with the service and the prices - and the organisation was making a decent profit every year. Australia Post seems to have lost its way with privatized post offices, retail concept ideas,etc. Posties don't come to the door any more (everything is "carded"). Service has gone, prices are up, profits are down…..
    Another public service degraded???

  • inherentchoice on 01/05/2015 - 13:28

    Online only: Why can't I mail a letter to Australia Post?

    A MOOLOOLABA retiree has written an angry letter to Australia Post asking why their "national discussion" on the postal service's future is taking place in the forum that's killed it…

    She communicates via phone or "snail mail" - and neither of these options were available to add her thoughts to the debate which will have an acute affect on her.

    http://www.sunshinecoastdaily.com.au/news/esther-stamps-her-…

  • whodidthat on 01/05/2015 - 13:31

    Got to keep Fahour's business family happy.
    Where would they be without AP's "donations"?

  • RichieDuck on 11/12/2015 - 14:57

    What a joke and disgrace. Mr Fahour must still be upset after not being able to get his Maser into the carpark.

    How about Ozbargain mail and parcel service.

    B&H can send me a parcel from the US for $10.75…

    I hope Aust Post crumbles under his greed.

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