A Rant Regarding Australia Post - Bring Back Smaller Thresholds.

[thegaminggamer]

Let's be honest, separating parcel costs by the 500 gram threshold is far too much. Even the 250 grams threshold (which existed many years ago) was too much, albeit tolerable compared to today's situation.

Charging per 500 grams is how you get ridiculous situations like being charged twice as much for going from 500 to 502 grams. Double the hurt if it's an international parcel.

It's how you get ridiculous situations like it being cheaper to send two large letters for $2 each ($4 total) but if you superglue those two letters together and send it as one, it ends up $7.60.

It's how you get ridiculous situations like it costing the same to post a 20 grams item the size of a golf ball, and a 499 grams item the size of a watermelon, simply because the golf ball is more than than 2cm.

What are the pro-arguments for the current high thresholds? Apart from profits, of course.

Everyone's productivity could be improved greatly if the thresholds were reduced to something manageable like per 100 grams. Sellers don't have to meticulously calculate the postage prices for their items for fear of underquoting (and being overcharged twice the amount by going over the threshold a few grams). Even if a seller underquotes, so what? It's only a few grams over, and the cost is only a few dollars. From eBay's point of view, it would also be a good thing because there would be fewer instances of buyers complaining about high postage due to underquoting. A seller would much prefer to shoulder the underquoting of a few dollars but not if it's something big like $10 (their incorrect quote) and $20 (actual cost).

Everyone's productivity could also be improved greatly if Australia Post didn't change their services and prices every few months. Speaking of prices, aren't some of the international shipping prices weird looking? It costs $23.72 to post a standard parcel to the USA. It costs $20.46 for an economy parcel to the UK. Why $20.46? $20, I can accept. $20.40, ditto. But $20.46? Is the $0.06 so important to Australia Post's bottom line? I would "happily" pay $20.50 if it allows me to memorise the figure. I used to be able to memorise all the parcel prices by heart, whether local or international. But now it's a near impossibility due to the erratic nature of the prices and it's going to change again every 6 months or so anyway.

There is of course merit to changing the sake of efficiency and productivity and whatnot but there is also merit in just staying the same. There are Post Offices in other countries who don't change their prices, for YEARS, let alone every 6 months.

Speaking of efficiency, and effectiveness, and productivity (a CEO's favourite meaningless buzzwords), I don't actually see it. Quite the contrary, I see LESS efficiency and LESS productivity. Such as the intentional withholding and delayment of the delivery of letters in order to justify the "economy" and "standard" pricing options. Not to mention the attempt to remove international large letters as a shipping option before being overturned by consumer backlash. I don't care how you define efficiency, and effectiveness, and productivity and [insert managerial business-speak word here] but to me the end result of those goals should be lower prices and more choices. The reality seems to be higher prices (or similar prices for an inferior product/service) and fewew choice (attempt to remove international large letters). Of course, I realise the actual point of "efficiency" is "profits for the few" but my thesis is based on pretending that this public/private (an entire different debate worth its own thread) hybrid company cares about consumers.

[dazzledayz · Accepted solution]

I can explain all this to you in a couple of sentences:

1st. Australia Post is being run by a managerial team compised of ex-bankers.

2nd. CEO Mohammed Fahour is ex-NAB and so are 7~8 of his fellow executive board members - either ex-NAB staff, advisers or contractors.

So to synopsize - If it's run by bankers it will be run like a bank and when was the last time your bank lowered its fees?

QED.

[collect247]

I'm with NAB and I don't have any fees

[casbit33]

same here, I'm with Nab too and no fees.

But I do agree that Aust post should bring back the 250g parcel. It's so annoying when I have to post a pair of earrings that are just over 2cm thick and they have to be posted as a parcel rate for 500g. They weigh less than 100g

[dazzledayz]

Do either of you have a credit card?

A homeloan?

Have you ever converted $AU to another currency?

Have you ever had a transaction declined?

Are your EFTPOS transactions unlimited?

Ever had investment advice?

Insurance?

Although the banks have been getting very cheap money for quite some time none have been interested in reducing credit card fees and when the cheap money stops (and it's heading that way) you just watch what happens to homeloan interest rates.

What sort of interst rates are they ofering on term deposit or account balances?

Just because you don't see any fees listed on your account statement does not mean they are not there.

What I was getting at in my first post was that AP are a logistics compny run with a bankers mindset.

They would rather keep volume low (easy management) and margins high (more profit) while dabbling with sideline services.

Couriers are logistics companies run by logisticians who prefer to keep prices as low as possible while building volume.

eg Couriers Please is owned by Singapore Post and TNT are owned by Japan Post.

I have a CP rates card somewhere from a while ago (within the last year) and the rates were under AP with much more variety.

They would do a local <500g for $5.00

There was also a 1kg about the same $ as an AP 500g (AP tried this for a month over a year ago and it was never repeated - probably gutted the 3kg satchel market would be my guess).

Noone does less than a 500g parcel if they use contracted drivers because the drivers fee per parcel would eat the profit.

AP used to do it when drivers were on wages but they are all contractors now too.

The thing is, even though AP has been corporatised its only "shareholder" is the federal govt.

The sole benefit of govt privatising AP was to arms length themselves from any political backlash over postage rates and services.

Also, rather than put a CEO in place who knew a thing or two about moving things aound the country they chose someone who only knows how to move numbers around a spreadsheet.

And we wonder why service standards are slipping while prices just keep going up?

[*tippy*toes*]

I agree with what you're saying, but I'm mostly commenting to commend you on knowing how to spell ridiculous  (there has been a run of people spelling it with an e)

[dazzledayz]

LMAO why thank you Tippie, I'm espeshully gratefull fer that kind commint 🙂

[lane-ends]

A 250gm parcel

~would reduce numbver of people sending things letter that should be parcel. Benefits everyone including AP

~It would allow tracking on these items. Benefits everyone

~It would make the sale of small low cost items more viable, bring more business to AP, rather than them subsidising chinese imports because locals cant afford to ship these same items.

So yes it is dumb not having it. Likewise 1kg bracket

[transport-posters]

I want this price bracket to return also, it would strongly benefit me with sending my posters.  I truly miss this cheaper option.

I have written to AP twice since it was removed and they say they understand my frustration but will not make any change.

Posting on this web forum is probably a better idea because of all the discussion it generates, but you should try and write to them also.

[thegaminggamer]

I think he was referring to me since I typed rediculous multiple times. I don't see the word rideculous on any other post unless my eyes are bad.