A simple and pivotal base for progress.

In June 1988, New Zealand Post changed the way it accepted and handled mail, from a weight-based pricing system to a size-based system. The New Zealand media said it was one of "The biggest improvements in the postal service since 1840!"

Postage charges by weight were abolished and replaced by charges based on envelope size – medium, large and extra large.

Size-based postage:

• made it easier for customers to use postal products and services
• allowed revenues to be better aligned with true processing costs
• reduced queue times at PostShops.

The development and widespread usage of new products such as Postage-Included Envelopes and an overall simplification of the management of New Zealand Post’s market offer were follow-on benefits of the size-based pricing implementation.

A number of other countries have changed to size-based pricing systems, including Australia, Japan, Canada and the USA, and some European countries are actively planning for size-based pricing.