NZ Post’s Price Hikes vs. Small Business Struggles
New Zealand’s wrestling with a cost of living mess right now, sky-high inflation and workforce headaches hitting hard, just like in other developed spots around the globe. Small businesses are feeling the squeeze most, many are shutting down, unable to keep the lights on. Meanwhile, NZ Post, the state-owned delivery giant, is raking it in. They posted a $102 million profit after tax in 2022, up $70 million from the year before, with parcel revenue jumping $137 million. This year, their half-year profit hit $115 million. Not bad for a public outfit. Their boss, David Walsh, was pocketing $896,826 back in 2018, makes you wonder what’s changed since.
NZ Post’s latest excuse for jacking up prices? Inflation, they say in their newsletter. Fair enough, costs are up everywhere. But dig a bit deeper, and it’s shaky ground. They toss in COVID-19 and “lower parcel volumes” as reasons too, yet their own financials show record profits. How do you square that circle? More cash rolling in, yet they’re still hiking rates. They’re not owning the bigger picture either, when a monopoly like NZ Post bumps up prices, it ripples out, nudging inflation higher. They’re pointing at the problem but dodging their part in it.
As a state-owned crew, NZ Post’s got a job beyond just turning a profit, they’re meant to back the country’s businesses and people. Especially now, with the economy wobbling, you’d think they’d lean into that role, keep shipping affordable, help firms stay afloat. Instead, they’re piling on costs. Why not tap those fat profits to ease the load rather than passing it on? Their line about inflation driving this feels thin when they’re not wrestling with the same survival fight as small outfits.
Take us at iPOP, we’re a small business trying to keep things fair. NZ Post’s rates are brutal for us, tied to volume, so big players negotiate sweet deals while we’re stuck. It’s a system that tilts the field toward the giants, leaving little guys like us scrambling to compete on shipping costs. We could hike our prices to match, but that just feeds the inflation beast we’re all battling. So, we’re doing the opposite, cutting shipping rates and eating the hit ourselves. Haven’t touched our eyewear prices in three years either, quality’s still solid, prices stay low.
NZ Post’s moves don’t add up, record profits one minute, price hikes the next. Small businesses deserve better from a state player, especially when the chips are down. We’re asking for your help, stick with local spots like us. Every bit of support keeps us going through this mess. Check our shipping rates here, we’re keeping them fair for you.
