NZ Post Innovation

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old3eyes

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#459729 17-Apr-2011 15:06

richms:
Gooseybhai:

Just out of curiosity, why do you refer to it as "loserbank". Im not involved in banking industry, but compelled to know your motivation. IMO ASB is my loser bank!

Because a majority of their customers will be always hovering around zero dollars, and they have eliminated fees which is the only way to make money off them, hence it will always loose money.

They lose NZ post money clearly from the dire position that nz post is in now.

So you would rather the people on low incomes had no banking at all??

Regards,

Old3eyes

richms

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#459853 17-Apr-2011 19:56

old3eyes:

So you would rather the people on low incomes had no banking at all??

I would rather that they are not subsidized by a greater split of interest rates on those that have some money in or have borrowed. I would rather that transactions had a reasonable fee attached so that I didnt get held up behind stupid people buying a coke with eftpos.

IMO, a state owned bank should be one of last resort, that you can only use if you can prove that commercial banks will not touch you. It should have higher fees to offset the higher risk, it should not provide services at a loss and burden on the post network as is the case with kiwibank.

Richard rich.ms

richms

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#459855 17-Apr-2011 20:01

Kyanar:
Wrong. The announcement of the loss was very specific in that the money was lost by the retail arm. Kiwibank is a separate entity and if it had been the cause of the loss, it would have been explicitly stated. Retail simply means that their shops and such are losing more money than they earn. Rather than simply making stuff up to match your viewpoint, you could read the annual report yourself (2010/2011 won't be available for a few months yet, that report is 2009/2010).

I cant get that PDF to load

How sure are you that the figures correcty show the costs associtated with the banking as being a cost for banking and not just "retail"

The problem I have with sending ANYTHING thru NZ post is the queue times, staff lack of knowledge and lack of staff because they are off in the room talking to someone about a homeloan or something equally non post.

Can you for certain say that the kiwibank true costs are not just being lumped on the retail part of the books?

From the customer side, it seems that most of the problems with dealing with the post shops are as a result of having banking services in them. If that was not there, then IMO it would work a lot better.

Richard rich.ms

jonherries

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#459871 17-Apr-2011 21:20

Hey all,

It might seem strange to some people, but the reason NZ Post isn't making any money is because of email...

Kiwibank makes plenty of profit, and is cheaper for the average punter. The only government money supporting Kiwibank is the growth capital required as it has been growing so quickly (I wonder why?).

It is worth noting it is the only retail bank (I am discounting SBS, PSIS and TSB) that is NZ owned.

If NZ Post wasn't break even or profitable with Kiwibank counters, why wouldn't they increase the management charges?

I for one and am happy that if it makes a profit, it will lower my overall tax bill so that is good.

If NZ post wants a really good idea for free, here it is:

Allow your own courier company to deliver to the post shop for pick up. It is much more convenient and probably faster) for me to pick it up from there (I am not usually at home during the day). They also save on not sending the courier van to my house.

Jon

gzt

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#459911 17-Apr-2011 23:25

Offer non-commercial customers pickup services, give the pick-up guy the retail commission. Especially valuable in rural and semi-rural areas, but could work well in suburban areas for standard letter post.

Hell, for standard post put an extra 20% on it, it will be worth it.

Van drivers will need simple weighing equipment and a /much/ simpler charging regime to eliminate time wasting.

I always liked that U.S system in the old movies where they put a coloured flag on the box to indicate mail to be sent.

This could vastly increase the mail volume.

old3eyes

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#459943 18-Apr-2011 08:39

By the way. These self service kiosks are not to supplement the ques at existing POs they're to replace these shops so expect lots more people to be out of work..

Regards,

Old3eyes

LennonNZ

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#459957 18-Apr-2011 09:11

gzt: Offer non-commercial customers pickup services, give the pick-up guy the retail commission. Especially valuable in rural and semi-rural areas, but could work well in suburban areas for standard letter post.

Hell, for standard post put an extra 20% on it, it will be worth it.

Van drivers will need simple weighing equipment and a /much/ simpler charging regime to eliminate time wasting.

I always liked that U.S system in the old movies where they put a coloured flag on the box to indicate mail to be sent.

This could vastly increase the mail volume.

When I was living in an area which had rural delivery we had a flag on our letterbox which we put up so the rural delivery person would pick up our email to send out so its not just a US thing.

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John2010

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#459978 18-Apr-2011 10:13

Kyanar: Wrong. The announcement of the loss was very specific in that the money was lost by the retail arm. Kiwibank is a separate entity and if it had been the cause of the loss, it would have been explicitly stated. Retail simply means that their shops and such are losing more money than they earn.

That is a very simplistic interpretation.

NZPost were commanded by government to create a bank for political reasons. The political reasons were quite unsoundly based as they arose out of a support agreement between the one man left of Labour band of one Dim Jim and Labour in the creation of a government. That in the face of other small NZ owned banks already existing and against whom they would compete (e.g. TSB), and as it turns out now its presence also creates a barrier of entry through at least market fragmentation to other small NZ owned banks wishing to start up.

If NZPost had been allowed to concentrate on their core business and the capital used for KiwiBank used in Post instead, even though that business diminishing as it was, that capital and governance focus would likely have gone into modernisation of that core business instead. For example, we may likely have had booths, stamp vending machines, etc as well as more concentration on new innovation in technology and operations some years back and the Post business remain viable which it currently is not.

So there is in fact an opportunity cost against the Post bottom line arising out of its creation and ownership of the bank, that cost being the future losses of Post that would have been prevented should the KiwiBank adventure have not occured and the capital and governance focus instead applied to the core business of Post. That is a cost against Post that does not show in the accounts and this is a loss incurred by the presence of the bank.

Banking also uses Post's outlets and other services for which it is widely claimed it is not properly charged. This also an opportunity cost against Post's bottom line as revenue available to it but for reasons unknown (probably though to lubricate the smooth implimentation of the political demand) not charged.

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