PostShop de­ci­sion

Kapi-Mana News - - OPINION -

I write re­gard­ing the pro­posed clo­sure of the PostShop in Mana (June 3).

As a long-time res­i­dent, the shop’s cur­rent fi­nan­cial po­si­tion has been en­gi­neered by New Zealand Post.

First, if you empty the shop of prod­uct to sell, you sell less, rev­enue falls, and it be­comes un­prof­itable.

If New World stopped sell­ing straw­berry jam, it could very quickly find that it sells none, so the jam was not worth stock­ing.

Sec­ond, Ki­wibank over-the­counter work ap­pears to be sub­sidised by New Zealand Post cus­tomers.

For ex­am­ple, you can­not use your credit card at New Zealand Post to buy mo­bile phone top-ups.

Pre­sum­ably the rea­son is Ki­wibank pro­cesses credit cards for New Zealand Post, and charges too much com­mis­sion.

You can do these same trans­ac­tions on your credit card at many other re­tail­ers, which don’t use Ki­wibank to process the credit cards.

I don’t know how se­ri­ous New Zealand Post is about find­ing a re­place­ment lo­cal home for the branch, given its re­luc­tance to re­veal mar­gins and prof­itabil­ity, and in­sis­tence both New Zealand Post and Ki­wibank ser­vices must be of­fered by the same busi­ness, in the same lo­ca­tion.

And pre­sum­ably the lucky re­tailer will have to switch to Ki­wibank to process credit cards as part of the deal.

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