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AusPost posts $95m profit, hikes prices

Wednesday, 06 September 2017
By Print21

A couple of weeks after posting a $95m profit and sending off its former CEO Ahmed Fahour with a $10.75m handshake, the national carrier has rolled out yet another round of price hikes.

Establishing an impressive new benchmark for PR spin, Australia Post announced yesterday on its online Newsroom website that it “will be changing the price of some products by an average of 2.8 percent” – but those hoping to find further details about the specific postal products that had been targeted were instead treated to a list of items that would not be facing price hikes.

From October 2, Australia Post will be changing the price of some products by an average of 2.8 per cent. These pricing changes will ensure we can continue to invest in our large and trusted delivery network, covering more than 4000 post offices and 11.6 million delivery points each day. This will also allow us to manage increasing costs across the delivery network. For most products, this is the first price increase in over 12 months.

We recognise that pricing changes are not easy for our customers and we have worked hard to keep prices unchanged on a large number of popular products, including on our parcel post satchels and seasonal domestic greeting card postage. We are also reducing the price of postage for a range of international parcels to New Zealand and Great Britain, and will continue to offer more than five million Concession Card holders up to 40 per cent off a range of products and services. There is no change to domestic stamp prices.

Later in the day, presumably after inquiries from curious customers, Australia Post added a final line to its release:

For further information, please visit https://auspost.com.au/about-us/news-media/important-updates/price-changes-effective-october-2

The link provides information about the increases, which will impact: selected domestic parcel products & services; selected Express Post parcel and letter products & services; selected international letter and parcel products & services; Mail Redirection & Mail Hold services; Unaddressed Mail services; Money Order services; Registered Post Imprint.

Some of the increases include: Express Post envelopes for next day delivery will rise from $6.10 to $6.40; a 500g Express Post satchel goes up from $10.85 to $11.35; general mail direction for three months will rise from $46.35 to $53.10; two-week mail lifts will go up from $30.85 to $35.30; the cost of posting a letter to the United States, United Kingdom and Europe will increase by 5c to $3.

Australia Post said the price increases were needed to meet rising costs of delivery. 

In its FY17 results announcement, Australia Post revealed its Letters business had suffered a record letter volume decline of 11.8 percent.

“The letters business still presents a significant challenge, with our largest ever 12-month volume decline experienced this year,” said Acting Managing Director and Group CEO Christine Corbett. “We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future.”

 

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