7 May 2018

Is this the start of the end for letters?

From Checkpoint, 5:45 pm on 7 May 2018

NZ Post will increase the price of sending a letter from $1 to $1.20 on 1 July in an attempt to offset the expected $30 million decline in revenue.

But is $1.20 to send a letter worth it?

The number of letters being sent in New Zealand is expected to plummet by at least 14 percent this year, which will cut around $30 million from NZ Post's revenue.

Nearly 40 million fewer letters were sent in the six months to 31 December 2017, compared with the same period the year before.

That trend is expected to continue for the near future as big businesses such as banks and utilities continue to move away from paper.

"We're generally on that line of loss and gain," NZ Post chief executive Dave Walsh said.

"Most of the reason we've stayed on the right side is the amount of cost we've taken out of our business, but that's getting harder and harder for us."

Checkpoint sent letters to RNZ reporters around the country as an experiment. 

Only two thirds arrived within the three-day target. 

Watch the full video report here: