This year’s “Double 11” has not yet arrived, and express delivery companies have begun to raise prices. Regarding the increase in express delivery prices, there is a famous saying in the circle: "Whoever increases the price will die first, and whoever does not increase will die together." So, should express delivery prices increase? How much? What is the impact on consumers?

How much the increase will be determined by the outlets themselves

Following the announcement by ZTO Express on the 10th that it would adjust express delivery prices, on the 11th, Yunda Express announced an adjustment in express delivery prices. This is also the second time after entering the express delivery peak season. A number of express delivery companies announced adjustments to express delivery prices. YTO Express officially responded that in principle there will be no increase at present.

“After comprehensive consideration, it has been decided to adjust express delivery prices across the entire network. Due to the different cost structures and rates in various places, the specific price adjustment range will be reasonably adjusted by each outlet based on the local market and operating conditions.” ZTO Express related the person in charge said.

The person in charge of ZTO Express said that for a long time, low express delivery prices have had many adverse effects on the healthy development of the entire industry. Especially since this year, the express delivery industry has been affected by various factors such as increased transportation costs, rising labor costs, and rising raw material prices, and price contradictions have become increasingly prominent. If there are problems at the outlets, it will directly affect the normal operation of "Double 11".

The person in charge of an express delivery company told reporters that price increases are price leverage and a means to regulate market flow before the peak season. The announcement is issued by the corporate headquarters mainly to convey a message to the market and requires customers' understanding. At present, companies that raise prices are all in the form of franchises. Whether and how much they will increase will be determined by the outlets independently based on their own operating costs and market competition. It is impossible to launch a clear price list like SF Express and EMS.

Some first-level express delivery outlets have not made any money for 3 years

“If we don’t increase prices, no one will do it. We spend millions of yuan on investment a year, and the profit is not even enough for loan interest. "Mr. Yang, the owner of a franchise outlet in Gansu, told reporters that many outlet owners have transferred their investment and will continue to operate the outlets if they can. If they don't make money, they will continue to operate normally.

The outlet run by Mr. Yang is a first-level outlet directly affiliated with the headquarters and is considered to be relatively large in scale. Currently, there are 20,000 express items entering and exiting the port every day. Since I joined in 2009, and since 2014, I have basically been in a state of not making any money.

You can’t make money by directly joining the headquarters’ first-level outlets. What’s the problem? Mr. Yang said that service requirements have become higher and delivery fees have become lower. Take parts sent from Gansu to Beijing as an example. Before 2014, the price was 15 yuan, but now it is only 10 yuan or 8 yuan.

Some people complained that the increase in the price of raw materials such as cartons has led to an increase in express delivery fees. Mr. Yang said that the costs of outlets include shuttle bus fees, transportation fees, distribution fees, etc. Packaging cartons account for about 30% of the raw material costs, which is not the main reason. In order to prepare for the upcoming "Double 11", Mr. Yang will invest at least 500,000 yuan. "The factory building needs to be replaced, as well as the operation room, security inspection and monitoring and other supporting facilities." Mr. Yang calculated that a new 1,000 square meter factory building will be replaced this year, with a monthly rent of 20 yuan per square meter, and a yearly rent of 240,000 yuan. Since the annual increase in express delivery is more than 50%, the factory must be changed every one and a half years to meet operational needs.

In the express delivery industry, prices are divided into e-commerce prices and ordinary bulk prices. E-commerce companies are often able to obtain very low prices due to factors such as large quantities of items and concentrated delivery locations, while prices for bulk items are often higher due to the relatively small quantity and cumbersome pickup.

“E-commerce customers keep prices very low, earning only a few cents per ticket. Before Double 11, orders for large customers increased by 1 yuan, and orders for spare parts increased by at least 2 yuan.” Mr. Yang has a firm attitude towards price increases.

Looking forward to diversified products and high-quality services

Industry insiders told reporters that although it is up to the outlets to decide whether or not to increase prices and how much they will increase. In fact, there are still internal corporate adjustment mechanisms at work. In order to cope with the upcoming "Double 11" and ensure that the company operates more efficiently, the corporate headquarters has adjusted the main line transportation and distribution costs. The cost pressure is transmitted to the following outlets layer by layer, resulting in a change in the cost structure of each outlet. , the increased cost of each outlet can only be made up through price increases.

Some companies have launched a "combination punch" action. First, they adjust the express delivery structure and increase the re-weighting fee. For example, in the past, the express delivery fee for items within two kilograms was a base price of 10 yuan plus an additional re-weighting fee of 2 yuan. Now it may change. The base price is 10 yuan plus a renewal fee of 4 yuan. The second is to adjust distribution fees and other expenses, automobile transportation lines, and subsidy policies for poor areas.

“No one will do a loss-making business, and the price increase is related to the local market competition. Express delivery wins by scale. In some economically underdeveloped areas, express delivery fees are quite expensive. In some economically developed areas, express delivery "The fee is actually cheaper." Mr. Yang said that franchisees are also divided into levels. Currently, there are at least four levels, namely provincial level, prefectural level, county level, and then the area below the county level. The most downstream outlets are not independent from the headquarters. Financial transactions are also the outlets that bear the greatest pressure.

Express delivery prices are determined by market mechanisms. Shao Zhonglin, an expert at the China Post think tank, said that express delivery price increases will naturally have an impact on consumers. Whether it is the timing or the extent of the price increase, they must be tested by market games.

“Labor, raw materials, space, etc. are all rising. It is impossible for express delivery to maintain costs and profits without rising.” Zhao Guojun, a professor at Beijing University of Posts and Telecommunications, said that express delivery price increases are a normal market Behavior, no need to be overly surprised. It is hoped that the return of appropriate prices will bring more diversified products and higher-quality services, and the company's sense of responsibility will be stronger.

Price increases are allowed, but service quality must also be improved after price increases.