This is the new brochure from Australia Post and what a brochure it is. Hang on, am I mistaken? This looks like a newsagency brochure. Street directories, copy paper, calendars, ink, toner, files, folders, batteries, calculators, fax rolls, shredders. Gee my head tells me these are newsagency lines. Where are the stamps? Where are the other postal related products? Oh, that’s right, the Government owned Post Shops (the 865 Government stores) have the right to do things which are “incidental†to providing postal services. Silly me.
Here is part of what I have written to the Minister responsible today – Senator Helen Coonan:
Enclosed is a copy of the Celebrate the Savings brochure from Australia Post for your information. This brochure demonstrates further abuse of the Act. Every page of the eight page brochure presents products which used to be the domain of newsagents. Having my own Government competing with me in this way is offensive.
I would like the Government, as the owner of Australia Post, to explain to me how they can claim that the sale of the items listed below is incidental to supplying postal services:
UBD street directory … Reflex copy paper … Printer ink … Printer toner … Calendars … Post brand calculators (made in China) … USB sticks … Laminator … Shredder … Post branded stationery (made in China) … Post brand blank CDs (made in China) … Post branded CD-R (made in China) … Diaries …Fax rolls.
Government ownership and regulation makes Australia Post stores destination stores. My newsagency does not have this monopoly advantage. Australia Post is abusing this advantage to encroach more and more into space previously the domain of newsagencies, some supermarkets and stationery stores.
I cannot land consumers to my store for the same low cost of Australia Post.
I cannot leverage a national brand like Australia Post to buy competitively.
I cannot control my opening and closing hours.
I cannot get the rent discount of an “essential serviceâ€.
I do not have a government protected postal service brand with which to leverage the sale of unrelated items.
When farmers talk of the impact of droughts the government steps in with assistance. When auto makers talk of the impact of cheap imports the government steps in and helps. When newsagents talk of the impact of Australia Post the government ignores us.
Australia Post is our drought. For many years now it has been draining newsagencies of revenue. Many are close to death.
How many newsagencies need to close as a result of Australia Post competition before we see action?
I call upon you to demonstrate your commitment to small business by supporting an inquiry into the impact on independent small business of government owned Australia Post retail outlets.
I know from past correspondence from the Government that a likely response will be that the majority of outlets are privately owned. I am not as concerned about these outlets. It is the government owned outlets which are doing the damage small businesses like my newsagency.
Jobs are being lost in newsagencies because of the actions of Australia Post. Does anyone care?
Could we have the address for Ms Coonan, and we should ALL write to her, and also get this in TV e.g. Current Affari or similar.
Great summary of what really happens to us.
Louise
Absolutely agree. Same could be said for mobile phone stores competing with the smorgasboard of pre-paid accounts and phone on offer. Plus Officeworks and other electronic stores trying to sell printers and faxes.
It’s shameful protectionism of a dinosaur.
Australia Post should stick to selling stamps and processing passport applications.
Seems strange that you are complaining about Aussie Post “encroaching” on your business – why aren’t you complaining about the on-line newspapers which represent a far greater threat to you than Aussie Post – I never buy a newspaper these days for the very reason they are free on-line. In any case these grumbles don’t seem to have affected the price of purchasing a newsagency these days ! Newsagents have it pretty good – what newspapers and magazines you don’t sell you can send back to the publishers and get a full refund – not many other businesses have that luxury !!!
Aden,
Australia Post is government owned. They use this and their postal brand to land customers for far less than any competitor. This provides them with an unfair advantage.
Newsagents make 25% from newspapers and magazines. Sure they can return unsold stock but they pay for it in the meantime and often wait three months for the refunds.
Consider for a money where the 25% profit from newspapers and magazines goes. 11% goes in rent. 11% goes in wages. 2% is lost in theft. 3% goes in overhead. Plus there are other costs. The real profit in a newsagency comes from items we make more than 25% from and by cutting costs. It’s a fine balancing act.
I used to think like you until I bought a newsagency in February 1996.
Are you saying that Woolies ,K Mart, Big W, Coles, etc aren’t eating in to your profits c’os they and the Newsagents are eating in to mine.
An LPO Owner
Clem, Woolworths, Coles etc are privately owned. The Government owns 865 retail Post Offices which use their government ownership to leverage an unfair advantage.
Mark