I don’t mind competing with Dick Smith, JB Hi Fi, Harvey Norman, Officeworks or Big W in the ink and toner category. I do mind competing with Australia Post government owned stores. They are trading off a brand which is respected only because of its government ownership and protection. When they advertise great prices, consumers are likely to believe them. Comparing our prices to these so called great prices from Australia Post, we beat them. But we cannot beat their brand awareness.
This latest campaign by Australia Post is another example of their abuse of the protection their Government ownership affords them.
That 21/22 Cartridge price is an absolute joke. I’ve seen it throughout Newsagents and other Ink/Toner Retailers for under $40 for since about March!
Nahcoob thanks for supporting newsagents. We do what we do without any government protected monopoly helping us. Your support is wind to the sails for tens of thousands of families across the country. Mark
Are the ANF going to do anything about this? Shouldn’t they as a body, be coming in to bat for us? Just another example on the need for an association that is pro-active for our industry.
Michael, This is absolutely where the ANF should invest its attention. Not on new commercial streams – for itself or for newsagents.
Mark
Exactly.
Australian Newsagents Federation. I’d join if they stood by their name.
The only thing getting flexed here is the customer’s intelligence – we sell cartridges every day at lower prices than those offered in the Aust Post brochure and the current Hotink prices absolutely blow them away but let’s give Aust Post some credit. They do understand that buyers in general react to brochure pricing seeing a bargain whether it’s there or not and we see that with the Hotink promotions that send ink sales soaring!
One thing Australia Post does give us though is ample material to market with as in their price/our price comparisons – shows them up for the tax-payer subsidised joke they are.
Hi All,
This may seem a little off the point, however it does relate to Australia Post…
We have an ugly brick wall on the side of the shop and are trying to turn it into a passive revenue stream by installing post boxes. The closest Post Office is 4-5Km’s away, and there is an undersupply in the local area.
Our customers want us to get the post boxes and we honestly beleive we could fill at least 100 -200. The landlord is one side and supportive, however we cannot find anyone to make them…
The only company we have found that can make them is contracted to Australia Post and will not make them for us without a confirmed order from them. We do not need their authorisation to install, but cannot find a company who can make.
Does anyone out there have post boxes, and/or do they know where we could source them…
Cheers
Peter
Peter, how much are you going to make out of post boxes?
You can get some plaster board which is rather inexpenive to put up and stock something that you don’t already have.
You shouldn’t be picking up Australia Post’s shortfalls, concerntrate on making money. Have a go a some new lines and see how you go.
Hi Michael,
We expect a 50%-60% pa ROI assuming 70%-80% utilisation rate. Rental charges for post boxes are app $400 per annum from Aust Post, so potential revenue stream could be up to $80,000pa – realisticly $50,000 – $60,000pa.
Capital outlay based on the Australia Post cost schedule would be app $80,000 to be build.
We want to mirror the ‘type’ Australia Post have with external (street frontage) display and locks, and seperate area internal for sorting and placing in boxes.
These are a good addition and do increase the value of the shop given such a high return.
Cheers
Peter
Capital outlay would be
Peter, would this mean you’d have to be an Australian Post franchise? If so they should be able to help you with the post boxes.
Hi Michael,
We are currently a Post Point agent for Aust Post. You do not need to be an Australia Post Franchisee to install post boxes. Mail is simply addressed to PO Box 1, XXXX News.
The mail is delivered with the normal run and we then sort and distribute into the boxes.
If you speak to your local Aust Post rep, they think they have the monopoly on this, however the legal advice received is that they do not.
There are a couple of Newsagency’s down the Gold Coast who do this, and hence the idea. Unfortuantley, none of the Newsagents down there know where they came from as they are unmarked, and were there when they purchased.
Cheers
Peter
Peter, I don’t know much about it, but I’m sure someone in Australia Post knows where they are available.
What involved in being a post point?
Peter, I don’t know where you are getting your PO Box rental prices from but AP only charges $82 for a small box $122 for a medium box and $193 for a large box, so your rate of return doesn’t add up. Then there is the issue of insurance ,security and confidentiality ect.
Clem
HI Clem, The rates where we are located are $187 for small, through to $817 for Jumbo and based on our customer feedback and survey’s completed the $400 is a blended rate based on the compositision required. Our insurance brokers have advised that this will not be an issue, and in terms of security the landlord is going to provide a seperate entrance and secure section for sorting, this will also work for our paper wrapping and magazine drop off…
Michael – you can apply through your local Aust Post office (they will put you in contact with the right person). You dont make much 5%, and need to sell a lot to cover the small annual fee, but potential upsell is through envelopes, parcel satchels that you can get from GNS and make good margin.
just an observation as it relates to the Australia Post monopoly.
Even though these taxpayer funded agencies attempt to undercut the newsagency channel with stationery and other non related post office products, I have never really noticed people browsing and purchasing these items as regularly as they do in newsagencies.
The mindset of the consumer after standing in the frustratingly long queues that typify Australia Post combined with indifferent customer service, is to get in and get out as soon as possible.Post offices will never have the inviting feeling that is unique to the newsagency channel where customers can feel free to roam at leisure, browse magazines, touch and feel product and then be served with appropriate level of customer service –
just an observation.
Just received a 18 page Australian Post catalogue, I am in NSW although I am sure it is a National catalogue. The items contained in the catalogue will astound you if you are a Newsagent, Book store, Mobile Phone Shop, Auto Shop, Music Shop, Butcher, Hairdresser etc etc.
Everything but the kitchen sink, they have encroached upon the Newsagency and other channels like never before.
This is criminal behaviour which is protected by the Federal Government that has just unofficially acknowledged that they want to destroy Small Business Australia.
It is not fair competition, if I had a spare one hundred million I would challenge Australia Post in the courts, I would also take the ACCC to court for conspiring with the Federal Government, I would challenge every avenue availiable to unveil all conflict of interests. I wish I had one hundred million dollars. Why dont they change the Small Business Ministers title in Federal to Minister for Australia Post.
Using Public Funds to destroy Small Business. What do you think?
If my rough calcalations were right the average profit by Government Owned Post Offices was $99K last financial year.Please correct me if I am wrong. It just does not add up.
Take a look here.
http://www.auspost.com.au/IXP/0%2C1083%2CCH2375%25257EMO19%2C00.html