Pricing For Effort Announcement
Freightways Group, which including brands like NZ Couriers, Posthaste, Castle Parcels, Now Couriers, Pass The Parcel and Sub60 have announced earlier this month their new Pricing For Effort initiative, effective from the 1st of July 2019 packages sent to residential addresses will incur an extra residential delivery charge
Generally residential deliveries are more challenging than the standard business to business or B2B deliveries, as residential areas are:
- more spread out than business area
- most residential addresses are unattended during business hours
- the driver are doing longer distance, more trips including redeliveries, and makes less money per trip
To recognise the extra effort the drivers puts in to deliver to residential areas, Freightways is introducing this new Pricing For Effort initiative, this is similar to the existing Rural Delivery Surcharge.
There are two types of Residential Delivery Surcharge, a charge for verified address ($0.95+GST) and a charge for unverified address ($1.15+GST), Parcelport system uses satelite coordinates to verify the address, when an address is entered into the Parcelport system, the system can tell if the address is business, residential or rural, so all Freightways residential deliveries via Parcelport will be charge at the lower rate of $0.95 and not $1.15
How to avoid residential delivery charge?
There are a number of options to avoid paying residential delivery charge:
- Have the parcel delivered to a work or business address
- Have the parcel delivered to a collection point such as parcel locker
- Other options such as Courierpost do not have residential delivery charges, however they do apply a blanket price increase on all the deliveries including business to business deliveries, they offer cheap courier option on residential deliveries but because of the blanket price increase their business to business deliveries would be more expensive.
Any questions on residential delivery charge please feel free to get in touch with us at Parcelport