What does everyone else think of the AP proposed letter price increase.

[dylan11235813]

I don't mind paying $1 for a small letter because I have basically never sent one. I think it is a reasonable price (even with AP's inefficiencies) but if they carry it to the other large letter weight levels the whole thing is going to be a mess.

I think also they are creating this 2 day extra postage thing to facilitate the introduction of a less frequent delivery service. What will the priority one cost as express letters are like about $6 now anyway. I guess registered and express letter services will increase which will bring them into line with the parcel services, a bit less though.

Then there is the fact that they did not see a reduction in letters comming...When there are only a few million letters being sent what are they going to do? Will it cost more to send a letter as compared to a parcel? (They like to seperate the business into different catagories)

Everyone seems to be offloading their stamp collections as well. I have picked up some quite good stamps just by buying them at below face value from ebay for use as postage, and save the ones I like.

Then there is the concession letter rate that I am reluctant to give my opinion on because I will get banished from the boards. There is heaps of other things that I find totally wrong with Asustalia Post.

I should point out that it is not my intension to undermine the hard work that some people do at Australia Post. The service I am provided here is great as I am sure other places as well. It just seems that the company as a whole is going backwards.

[everard6920]

The problem for me is the increase in the cost of large letters.

I can't imagine that they will only bump up the cost of the 0 - 50g letter. They'll also bump up the other domestic letter rates, and probably the international ones, too.

It doesn't affect me because I don't post internationally any more, but the cost of sending internationally (letters and parcels) is already astronomical in comparison to other countries.

So it really annoys me that they keep saying that Australia has the cheapest letter rate in the developed world, because I'm pretty sure we are one of the most expensive for international letters and parcels. That makes it very difficult to compete in the global marketplace.

As an example:

it costs $12 to send a 450g item from Australia to Japan ($12.25 for parcel rate). No insurance or tracking. $19.25 if you want to send it registered.

From Japan to Australia: 870 yen ($9.35 at current exchange rate). 1500 yen ($16.15) for EMS (which includes online tracking and express delivery).

That's a significant difference when you're competing in a global marketplace. And it's even cheaper from some other countries (China, Hong Kong).

In my opinion, they need to fix their business practices, instead of increasing prices. The number of times I've been under-charged at the post office, only to get home, notice the error on the receipt, call AP, and be told, "oh don't worry, nobody will notice and it'll just go at the lesser rate". Good for me. Terrible for business.

[cherry*135]

The price of large letters will go up, and that won't be good for selling items that are sent in these. Another increase in cost for the buyers, may not be worth it for lower value items.

I don't know why AP don't downsize some of their PO outlets. In our town the PO is in a historic two storey building, clock tower, nearly ocean front. Prime real estate. I think someone lives in the top storey, so rental income there.

A small shop in town would be just as suitable and no upkeep costs like the current one. There is no mail sorting done there. Parking is just as good/bad as other parts of town.

[saarzi]

I'll just have to email my clothes to buyers from now on.

[mbselections00]

One thing I wondered & so asked the owner at my LPO today - so if they proceed with this idea, does that mean the staff at the PO are going to have separate the mail into separate bins for collection - the slow bin & the fast bin & then when the items arrive at the sorting centres are they seriously going to sort the mail into categories and intentionally send some mail by slower means ?

He laughed and said, no idea yet how it is supposed to work, but you have to wonder don't you & smiled rather cheekily . . . . . . before implying it will all just go in together anyway

But as almost all my parcels go by Large Letter, and are low value items, any increase will undoubtedly mean I will have to consider huge changes in the way I sell

[dylan11235813]

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@gtx305 wrote:

I'll just have to email my clothes to buyers from now on.

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As silly as it sounds you can.

[clarry100]

99.9% of our stuff goes out large letter with 2x 70-cent stamps on it now. We list everything with "FREE" postage.

So we will have no choice but to increase the prices right across the board by 60-cents plus the FVF on top of that to cover the postage increases.

Most of the materials we use comes in from overseas so we are now having to pay at least 20% more now due to the low AU$. So that means another increase soon to cover that too. So far we have been still on old stock but now we are ordering at the new exchange rates.

So with this and the new postage I'm guessing we will be increasing our sale prices by around 10-12% total. We will have to see how this affects sales. I'm sure all our competitors in our category will be feeling the same pressures tho. Except, of course, the flood of Chinese sellers. Its going to make their stuff look even cheaper.

[dylan11235813]

Yep the exchange rate is a downer, I think it is likely to get worse (or better depending on how you look at it). When paying by credit card it actually adds about 1/3 of the US dollar value., there is some international tax added on that makes it even worse (I think it as about 5%).

All of the chinese prices are generally quoted in AU dollars but ebay quote a lower exchange rate as compared to paypal and make things look cheaper. I don't know what they should do as it is the actual exchange rate.

[phorum_junkie*]

We have had a two tier letter post system n the UK for many years now. As I understand it the stamps are recognised by a machine and sent down the first or second class post chute.

The cost of a 1st class small letter is 63p which equals Au$1.22, 2nd class 54p = Au$1.05

Large letter 1st class £1.26 = Au$2.44 Second class £1.19 = Au$2.30

So when you take into account that the whole of Great Britain could fit into a small corner of Queensland so the distances post has to travel is hardly anything compared to even going from one side of the same state to the other never mind across the continent it looks to me like AP are offering a very subsidised service.

[clarry100]

Yes PJ I try to put it in perspective too something like this.
It would cost me the same 70-cents to post a letter to my next door neighbour or to someone in Oodna-galarbie way in the outback of WA somewhere.