Deutsche Post has submitted a request to the German Network Agency to approve a mail price hikeof 2.8% on average for the coming year which would be the first increase in 15 years.
As part of its annual request for mail price approval at the Federal Network Agency, the Germanpostal operator plans to to increase the price for a standard domestic letter (up to 20 grams) fromthe current €0.55 to €0.58 from January 1, 2013 onwards. In addition, the price for a domestic Maxiletter (up to 1,000 grams) is expected to rise from €2.20 to €2.40. The rates for compact, largeletters and postcards will remain the same. The request is based on the legally stipulatedprocedure for setting the prices of selected mail products.
The company stressed that the rate hikes would only have a minimal impact on private householdswhose monthly expenditures for mail services have been declining for years amounting to just €3.32in 2009. This would mean the additional monthly cost would be €0.09 on average per household.
After the last price increase in 1997 and a rate decrease in 2003, it is the first time DeutschePost considers it necessary to adjust the prices due to the general cost development.
Jurgen Gerdes, head of Deutsche Post DHL’s mail and parcel division, doesn’t see any otheralternative to the rate increases in a changing economic environment. “For years, we have been theonly company to provide basic, nationwide postal services to everyone in the country six days aweek. The quality we provide also serves as a benchmark at the international level. At the sametime, we offer our employees secure jobs, highly competitive salaries and employment benefits anddespite a reduction in mail volumes along with rising salaries, we have continuously been able toimprove our productivity. If we want to continue to ensure this level of quality for our customersand to secure attractive jobs for our employees, we cannot avoid a moderate rate increase.”
Even after the proposed increase, the price for a standard letter sent within Germany wouldremain in the mid-range compared to other European countries, Deutsche Post stressed.
The independent long-term study “Customer Barometer 2012” confirmed Deutsche Post’s high qualityin comparison to other major service sectors according to which 96% of the people surveyed aresatisfied, very satisfied or completely satisfied with the letter mail services. This represents animprovement on the previous year and in overall satisfaction and one of the highest improvements ofall the industries observed.
Deutsche Post claimed that it offers its 180,000 employees in the letter and parcel divisions inGermany salaries above average and better employee benefits than its competitors. A long-termemployment pact between the management and the postal workers protects them against dismissals dueto business conditions while the Generations Pact sets forward-looking standards for age-basedworking solutions.
