2.9 Discounts


The price proposal presented by CTT includes a reduction of discount rates according to the invoicing, which applies to national standard mail in the contractual segment, thus covering the delivery both of contractual standard mail covered by the current price proposal and of bulk mail  (vide Table 6).

Table 6 - Change of National Standard Mail discount rates

STANDARD MAIL

Monthly billing steps

Pre-active discount rate,
cash discount rate and discount rate
for credit payment with direct debit
within 45 days B2B

Discount rate for credit payment
without direct debit

2014

2015

2014

2015

10 000 € to 49 999.99 €

0.5%

0.3%

 

 

50 000 € to 99 999.99 €

1%

0.5%

 

 

100 000 € to 249 999.99 €

2%

1%

1%

0,5%

250 000 € to 499 999.99 €

4%

2%

2%

1%

500 000 € to 1 499 999.99 €

8%

4%

4%

2%

1 500 000 € or more

10%

5%

5%

2.5%

Source: CTT letters of 17.12.2014 and 14.01.2015 and information disclosed by CTT on discounts currently applied (http://www.ctt.pt/dotAsset/3b423168-e363-4622-9a0e-a0b2937beb81.pdf).

According to CTT, this proposal aims, on the one hand, to mitigate duplication that existed after the introduction of special prices for bulk mail and, on the other, to encourage the application of discounts according to the rate of automatic reading of correspondence, thus placing greater importance on quality discounts, fostering the efficiency of mail handling operations and also promoting some acceptance activities.

According to evidence presented by CTT in its letter of 19.01.2015, the expected impact of this change in contractual customers of the tariff under analysis (that is, except for bulk mail) corresponds, in overall terms, to a reduction to around half the average total discount, which already has a irrelevant weight in total (gross) revenues of the service, corresponding to less than (BCI)   (ECI) % of revenues (vide Table 7). CTT add that this change in discounts impacts especially standard bulk mail customers.

Table 7 - Impact of the change applied to discount rates

 

Application of the current discount table

Application of the current discount table

Gross revenues

Net revenues

Discounts

Average discount

Gross revenues

Net revenues

Discounts

Average discount

National standard mail

(BCI)

 

        (ECI)

Unit: thousands of Euros       
(1) The amount of discounts does not include additional discounts applied to the  automatic reading of addresses (value estimated for 2014: 4.1 million €)
Source: CTT letter No. 50177, of 19.01.2015.

CTT further informed that, at present, in Lisbon, the only business mail counter operates at Cabo Ruivo, the business mail counter at Pinheiro de Fora having stopped operating.