Australia Post increases profit / NZ Post loses money!

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Forums › Finance and wealth management › Australia Post increases profit / NZ Post loses money!

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skewt

750 posts

Ultimate Geek

#2079706 27-Aug-2018 13:43

Isn't part of the problem that they are bound by the deed of understanding so are forced to deliver to uneconomic rural points?

amiga500

1484 posts

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#2081086 29-Aug-2018 20:20

Go back say 20 plus years many people would moan about NZ Post but an equal number would say how fantastic NZ Post was. Recently, just about every story concerning NZ Post is a horror story about delays and incompetence, with very few people leaping to their defence.

matisyahu

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#2081122 29-Aug-2018 21:51

amiga500:

Go back say 20 plus years many people would moan about NZ Post but an equal number would say how fantastic NZ Post was. Recently, just about every story concerning NZ Post is a horror story about delays and incompetence, with very few people leaping to their defence.

Reminds me of Chorus and the process of tendering it out to the cheapest contractor then they're 'surprised' when the installations are half-assed and half baked. Then again it goes back further - in the 'good old days' you had a stable job, during the slow times your boss let you chill but during busy periods you did a few extra hours off the clock because you knew that your loyalty in the long run would be rewarded. Fast forward to 2018 where businesses have outsourced almost every part of their business under the guise of 'efficiency' resulting in the bureaucracy protected at the expense of those who deliver what makes their organisation tick.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

PhantomNVD

2619 posts

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#2081123 29-Aug-2018 21:51

msukiwi:

From: https://www.stuff.co.nz/business/106532763/nz-posts-core-business-returns-to-red-as-letter-volumes-continue-to-plunge

The core postal business of state-owned NZ Post is back in the red, with a further plunge on letter volumes.

Wellington-headquartered NZ Post reported a net profit after tax of $13 million for the year to June 30, down from a $27m profit last year.

.....The drop in letters was partially offset by an increase in parcels, which rose by 7 million.

Hmmmmm......I smell fudge!

How on earth are they "in the red" with a $13 million PROFIT?

Sure 'profits' are down to half, but profit is profit, and a $13,000,000 profit is still not "in the red" at all!

blakamin

4431 posts

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Inactive user

#2081130 29-Aug-2018 22:14

vexxxboy:

20 million people and an Amazon really helps your profit margin

Not when 90% of amazon Oz stuff isn't sent by AusPost.

Amazon.com.au use fastway, other sellers use the cheapest they can. And our couriers are crappier than most NZ couriers.

Ebay is mostly China.

I live 8 kms from the 3rd largest town in South Australia, and I can't get mail delivered. I have to pay for a PO box. That's how Auspost are making money, that and only delivering 2-3 times a week.

ObidiahSlope

260 posts

Ultimate Geek

#2081146 29-Aug-2018 23:24

I was going to have a moan about NZ Post slow delivery times. A letter posted by a large business in the Auckland CBD on Thursday 16th was not delivered into my box in a large South Island town on State Highway 1 until Saturday 25th. On closer inspection the letter production and posting may have been outsourced to a bulk mailer.

Are my suspicions plausible and does anyone have experience of bulk mailers slowing letter delivery down?

Tip: I use DX Mail as much as possible. They have guaranteed next day delivery across town and seem so far to beat NZ Post for South Island to North Island delivery times. There are however some negatives. Stamps are hard to come by, post boxes are limited and they only do deliveries to reasonably sized built up areas.

Obsequious hypocrite

Kyanar

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#2081148 29-Aug-2018 23:54

PhantomNVD:

How on earth are they "in the red" with a $13 million PROFIT?

Sure 'profits' are down to half, but profit is profit, and a $13,000,000 profit is still not "in the red" at all!

It says the core postal business is in the red. The NZ Post business as a whole though also includes Kiwibank, as well as their data businesses and various other investments. Kiwibank is the only thing holding it up, most likely.

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sbiddle

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#2081167 30-Aug-2018 07:24

PhantomNVD:

msukiwi:

From: https://www.stuff.co.nz/business/106532763/nz-posts-core-business-returns-to-red-as-letter-volumes-continue-to-plunge

The core postal business of state-owned NZ Post is back in the red, with a further plunge on letter volumes.

Wellington-headquartered NZ Post reported a net profit after tax of $13 million for the year to June 30, down from a $27m profit last year.

.....The drop in letters was partially offset by an increase in parcels, which rose by 7 million.

Hmmmmm......I smell fudge!

How on earth are they "in the red" with a $13 million PROFIT?

Sure 'profits' are down to half, but profit is profit, and a $13,000,000 profit is still not "in the red" at all!

Remember this includes the losses incurred because of the $101 million writedown of the CoreMod project which canned by Kiwibank who are still partly owned by NZ Post.

There is also court action under way from ACC and the NZ Super Fund (who purchased a large chunk of Kiwibank off NZ Post) over CoreMod and this writedown, both of whom are claiming damages from the losses incurred by them.

tdgeek

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#2081173 30-Aug-2018 07:40

amiga500:

Go back say 20 plus years many people would moan about NZ Post but an equal number would say how fantastic NZ Post was. Recently, just about every story concerning NZ Post is a horror story about delays and incompetence, with very few people leaping to their defence.

If you or I owned the mail section of NZ Post (which for most of its life was the only core business) we would have quietly shut it down when profits dropped to a non viable level. When the return on investment became marginal. We would have used every mechanism to save costs. NZ Post in terms of mail should not exist. But it does as this is the transitional period between snail mail and no snail mail. Had NZ Post made the correct financial decision, say 5 years ago to shut down snail mail, how would this thread be now? We cannot complain. Tech has made snail mail redundant, you can't have it both ways

sbiddle

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#2081179 30-Aug-2018 08:06

There are also lots of political and staff/union issues NZ Post have had to deal with. They were hampered by what they could do with their kiosk deployments despite so these went nowhere. Great idea - but simply not possible to take them further due to draconian rules.

amiga500

1484 posts

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#2081243 30-Aug-2018 10:21

The funny thing is that around 20 years ago the most common complaint seemed to be standard post letters arriving as quickly as those sent by fast post!

Now fast post is gone & everyone cheers if the letters get there in a few days!

amiga500

1484 posts

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#2081826 31-Aug-2018 11:04

https://nz.trustpilot.com/review/www.nzpost.co.nz

A whole page of 1 star reviews. Some are quite funny - worth a read.

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