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Australia Post

Watching Australia Post

IMG_7753I urge newsagents to read the excellent John Durie article in the deal lift-out in The Australian today. Also read the accompanying piece by Glenda Korporaal. Both articles speak to challenges we face in our businesses, challenges being faced by Australia Post too. There is an optimist underpinning the Australia Post story.

What Australia Post is doing to reinvest their business model is instructive for us. Their moves speak to operating outside the square, confronting tradition and being competitive when if the past competition has not been a requirement.

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Australia Post

Australia Post taking a supermarket approach to self service

IMG_6702A government owned Australia Post outlet I see regularly has someone now next to their self-serve units to help take more customers through these than at the counter. Is this is a concerted education campaign to get more shoppers using the self-serve units?

In recent visits I have noticed the line for the human counter is shorter than the line for the self-serve counter.

Supermarkets do this and the result for them has fewer human counters and more self-serve locations.

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Australia Post

Westpac to quit small business agency outlets for Australia Post

Small business newsagents and other retailers operating a Westpac banking agency within in their retail business heard in a phone hookup with Westpac yesterday that they are to lose their agency business.

Westpac has contracted with Australia Post to take over local Westpac agency operations.

This is a blow to these locally owned newsagencies and other small retail businesses. Losing this vital revenue is challenge enough, that they are losing it to a government agency is leading to anger. In several cases I have heard of the Westpac agency is moving to a government owned Post Office and not a LPO.

I am not affected in my newsagencies. If I was, I’d advise my customers that Westpac is putting profit ahead of small business and if it was being taken by a government owned Post Office I’d note that the federal government is is putting their profit ahead of good small business policy.

Newsagents in rural and regional situations are more affected than in the city as this is where Westpac agencies are more likely to be located.

In the phone hook-up, Westpac advised that retailers would have around a year an a half to adjust prior to losing an agency. One newsagent I heard from yesterday advised that in their case they have have been given just four months.

Westpac has advised of an ex-gratia payment to facilitate a make-good in the stores losing the agency. However, from what I understand, the amount mentioned is considerably less than what such make-good would reasonably cost in many situations.

Different newsagents affected by this move will have different reactions. I am writing about it today to give people a place to comment an to bring public attention to the Westpac / Australia Post deal.

Anyone affected and unhappy with the Westpac proposal could take the matter up with a local disputes tribunal list VCAT or QCAT. They could also seek mediation through their local Small Business Commissioner.

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Australia Post

Japan Post / Australia Post game on

With the Treasurer announcing his approval yesterday for the take over of Toll Holdings by Japan Post, he has set the stage for intensified pressure on government owned Australia Post.

While much of the pressure will be felt at the delivery end of the Australia Post business, there could be implications for the retail side of the business including licenced Post businesses.

The acquisition, even the proposal of the acquisition, is a reminder that things change and we need to be prepared for change in our businesses.

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Australia Post

Australia Post CEO talks up sending Christmas cards

Click here to hear the terrific interview between 3AW’s Neil Mitchell and Australia Posts’s CEO Ahmed Fahour in which Fahour talks up sending Christmas cards and talks down sending Christmas greetings by email. He also notes that postage for Christmas cards is frozen at 65 cents.

Christmas cards are important to our channel. They generate traffic and drive deeper and more valuable baskets. We ought to thank those who talk up this segment of greeting cards and ourselves work hard to encourage people to send cards.

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Good Australia Post analysis worth reading

The Mandarin has published a good piece by David Donaldson on Australia Post and the call from its CEO for change. I say it’s good as it sticks to the facts and does not engage in the shrill of some of the mainstream media reports over the last week.

Australia Post is dealing with extraordinary disruption and the changes they are seeking could lose votes yet they are essential to the commercial viability of the operation. These challenges are similar to what newsagents face with print media and agency products.

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Australia Post

Challenges for Australia Post in Japan Post bid for Toll

The A$6.5B takeover bid for Toll by Japan Post could spell challenges for Australia Post if it proceeds. It would almost certainly inject stronger competition into parcel services and express post services, important parts of the Australia Post model. I expect it would also lead discussion on privatising Australia Post or at least parts of Australia post to enable it to be more competitive.

The Age and many other news outlets says that e-commerce is driving this acquisition.

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Australia Post

7-Eleven Australia Post lockers challenge newsagents on parcels

ap-boxesI got my first look at Australia Post package pickup lockers a few days ago – at a 7-Eleven store.

Located at the front of the business, facing the fuel pumps and the street, the lockers are noticeable. The branding achieved by Australia Post in a 7-Eleven location is extraordinary. The apparent strong partnership between these two businesses should concern newsagents. It surprises me.

The newsagency channel should have had the front running on a closer commercial relationship with Australia Post given the number of newsagencies that are Licenced Post Offices. However, for the parcel pick up model Australia Post would have sought a partner offering easy parking, discipline and the ability to deal on a network wide scale. Newsagents don’t offer any of these.

I see the link between Australia Post and 7-Eleven on this parcel pickup project as a sign of a deeper relationship between the two giant organisations, one that could ultimately impact on newsagency businesses – LPOs and others as it is the type of relationship others will notice and make their decisions on.

Newsagents unhappy with a closer Australia Post / 7-Eleven relationship need to think about what the newsagency channel could have offered Australia Post that would have been more compelling than a 7-Eleven pitch. To that I say we could offer them nothing.

We need to have a realistic view of ourselves when considering the channel. I think we are more demanding than we deserve to be. Newspapers and magazines are the only categories connecting us and even they are done differently right across the channel: to different standards, to different scale and with a different future in mind.

Our independence and local ownership which we see as an asset are what lead organisations like Australia Post to look elsewhere.

The sky is not falling.

The lights are not flickering.

But we need to take note of these changes happening around us. We need to be aware of the strategies of networks like 7-Eleven. We need our own plan for our future that we can build around our business or those we are commercially connected with.

We need to look at moves like Australia Post working with 7-Eleven and know we’re okay because we know where we are going and how we are going to get there.

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Australia Post

Australia Post offers timely help to licenced post offices

Here is a media release from Australia Post yesterday in which Australia Post makes statements of unequivocal support for its small business licenced postal network. Other newsagent suppliers could take note – Tatts, state transport offices and similar agency product suppliers. Well done Australia Post.

15 December 2014

Australia Post announces further support for Licensed Post Office network

Australia Post today announced a wide range of initiatives to further support more than 2,900 post office licensees.

Benefits will start flowing through the post office network early next year, with more than $41 million in post office box payments brought forward by three months to help manage the ongoing sustainability of licensed post offices in the face of declining mail volumes.

Other key measures include establishing a third-party independent study into the sustainability of the licensed post office network and a new formal working group with licensee representative bodies to help address strategic challenges facing the network. This group will be independently chaired by former Senator Helen Kroger.

Managing Director and Group Chief Executive Officer, Ahmed Fahour, said Australia Post was committed to maintaining its extensive post office network, in which licensees played a large and critical role, as part of its reform program.

“In more recent times, with overall customer numbers and letter volumes declining, the business environment for both licensees and Australia Post has become more challenging and we are looking at a number of ways to address this,” Mr Fahour said.

“We are currently establishing an agreed terms of reference for a formal independent study into our licensed post office network, to be conducted by a third-party. The findings of this study will form part of a broader review into the structure and value of payments to licensees.

“I’m confident that by also extending our consultative arrangements to include formal meetings with licensed post office representative bodies, such as LPO Group, APLAC and POAAL, we are well placed to help address the strategic challenges facing the traditional mail business.

“This working group has already met with senior Australia Post executives and will continue to meet to discuss ways we can work together to address issues affecting the network.”

Already Australia Post, in consultation with licensed post office representative bodies, is proceeding with a range of initiatives including:

• Expedited credit applied to January statements for returned excess Christmas postage stamps
• A revised dispute resolution process for licensees to streamline the process, as well as the early identification of any systemic network issues. Details on this revised process will be communicated to licensees once finalised

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Australia Post

Australia Post trades off government protection

apsavingWhile other retailers in shopping malls are required to open Public Holidays, Australia Post corporate stores are not. Today, Melbourne Cup Day, Australia Post avoids the crazy penalty rates while retailers competing with them are hit by the cost. This situation is a benefit available to Australia Post solely because of their protected status as a government owned business. It is a perfect example of government ownership and protection providing them an unfair competitive advantage.

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Australia Post

Finance Minister makes case for selling government owned Australia Post retail outlets

At his press conference on Sunday announcing the privatisation of Medicare, Finance Minister Mathias Cormann made the case for privatising the government owned and protected Australia Post retail outlets.

There is absolutely no good reason for the Federal Government to own a private health insurance business today. Medibank Private is a commercial business, operating in a well-functioning, well-regulated competitive market with 34 private health funds. There is no reason as to why the Government should be involved in that commercial, competitive market. Furthermore, by selling Medibank Private we will remove the current conflict which the Federal Government has by being both the regulator and the largest market participant.

The justification used for privatising Medicare applies 100% to the Australia Post corporate store network: these are commercial businesses operating in a well-functioning, well-regulated competitive market. The government is the regulator and the operator.

The only difference between the Medicare situation and Australia Post corporate store situation is the size of the competitors. Medicare’s competitors are big businesses whereas Australia Post’s competitors are small businesses, like newsagents.

If this government was fair dinkum about competition, government ownership of businesses and small business it would sell off Australia Post owned retail stores. Further, it would sell them to small business operators as part of a strengthening of the franchised network trading under the Australia Post name. This would end government owned retail outlets from competing with small businesses.

Further on in the press conference the Finance Minister is clear about the privatisation case:

REPORTER: What do you say to policyholders, particularly older Australians, who specifically joined Medibank Private because it was Government-owned. I spoke to one this morning and he was pretty annoyed, he did join because it was Government-owned and he was pretty upset.

MATHIAS CORMANN: The Government has made a judgement that in 2014 it was no longer appropriate for the Government to run a private health insurance business.  Private health insurance is a very well functioning competitive market which is well regulated. There is no public policy reason for the Government to continue to be involved in this market. We believe that on behalf of taxpayers that the capital that is currently tied up in Medibank Private can be used better. Furthermore, I would say to the member of Medibank that you spoke to, that he or she will be able to have access to at least the same level of services into the future if not better because in our view without public ownership, without the restrictions that public ownership brings with it, Medibank Private will be able to go to another level.

Australians would be better served with locals awning and operating Australia Post shops and these being on a fairer competitive footing than the government owned outlets today.

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Australia Post

For Arts Sake cards at 50% off at Australia Post

auspostcardsdiscountAustralia Post has For Arts Sake cards at 50% off up until October. The offer excludes Christmas cards and Father’s Day cards when they had them out. I am not sure who is funding this discount. regardless, it is disappointing that government owned and protected retail businesses are so aggressively taking sales from small business newsagencies.

This is poor small business policy in action.

Yes, I get that Australia Post is run at arm’s length from the government. however, politicians control the act under which this massive retail network operates, they control how far Australia Post encroaches on our small businesses.

If I had my way, Australia Post would divest itself of all corporate stores with small business newsagents having first right of refusal on acquisition.

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Australia Post

Australia Post shows why we’d be wasting money on over the counter bill payment

Australia Post has been doing more clever stuff as it recasts its business with a stronger digital focus. The latest announcement – about its digital mailbox – further demonstrates why newsagents who want an over the counter bill payment solution for the channel are out of date in their thinking. That ship sailed years ago and here’s how Australia Post is focused on a more mobile and digital future:

Australia Post opens up its MyPost Digital Mailbox to Android smartphone users

With more Australians wanting greater convenience and choice when it comes to mail delivery, Australia Post has launched the beta release of MyPost Digital Mailbox for Android devices to the public. The Android App is available now at https://play.google.com/store?hl=en (search for MyPost Digital Mailbox). And Australia Post invites user feedback at apdm.consumer@gmail.com.

It joins the Apple iPhone App and of course the laptop or desktop options of accessing your MyPost Digital Mailbox. Whichever way you access it, MyPost Digital Mailbox gives you the power to receive and pay most bills and store important documents securely online, all in one place.

Organisations like Telstra and AMP, utilities that include Sydney Water, Goulburn Valley Water and Shoalhaven Water, myGov, and local councils across the country, are choosing to use the MyPost Digital Mailbox as a billing and statement service.

The online free storage also lets you keep records that you might need for tax or when you are travelling, and lets you manage important paperwork securely and much more efficiently. By putting all your important paperwork in one secure place that you can access anytime, anyplace where there’s an Internet connection, you can streamline the process of managing an important part of your life, at the same time freeing time to do other things

To find out more and to open your free MyPost Digital Mailbox from Australia Post, visit digitalmailbox.com.au.

Sure I have issues with Australia Post – in particular their government owned stores that continue to compete with small business newsagencies. Outside of that though, kudos to them for their work in recasting their business model.

Newsagents who want a bill payment solution to offer through our channel should spend their free time wishing for something more relevant to today.

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Australia Post

Australia Post Licenced Post Office Agreements run for 20 years?

I was surprised to read reports this week that Australia Post Licenced Post Office agreements run for 20 years with little opportunity to exit the agreement. The ABC had this story yesterday.

Given the considerable challenges being faced by Australia Post and that small business LPOs shoulder costs of many of those challenges, the length of the agreement is an issue to consider.

I’d be interested to hear what LPO operators have to say about this.

There are some days I look at the traffic of Post Offices and think it would be good to have it. But then I consider why people are there and think I am better off attracting shoppers who are looking for higher margin items and others prepared to spend up on impulse lines. I suspect the conversion rates of postal and bill payment services shoppers to other items is low. It’s what newsagents found with Bill Express.

For me, it comes back to being a retailer or an agent. While I choose to be a retailer, if you own and LPO or have one within your newsagency business and decide to focus on being a retailer, the length of the agreement could be a challenge.

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Australia Post

Australia Post focused on online

auspostonlineshopThe message in Australia Post retail outlets through to their vehicles is that the government owned organisation is focused on online. Their leveraging of their retail and vehicle network provides them a low-cost platform from which to pitch for business and compete with other players in this parcel space.

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Australia Post

Australia Post supports newsagents

ausposttweetAustralia Post supported newsagents in a Tweet last night. Just their mentioning us in this tweet put us in front of their 16,800 Twitter followers. yes, they mentioned Officeworks in the same tweet. No matter, newsagents were mentioned and Australia Post did not have to do that.

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Australia Post

Australia Post opens a conversation about its future

Newsagents, especially those with LPOs, ought to read the announcement from Australia Post last week about terms, services and other major developments.

Australia Post has moved to strengthen its vital regional and rural store network by announcing a package of initiatives that includes increased payments to post office operators and wider access to point-of-sale technology enabling customers to access more services.

Their rural sustainability package will be of particular interest:

Offering connection to Australia Post’s electronic point of sale system (EPOS) for 432 LPOs that currently use manual processes. This will allow these stores to offer customers additional services such as payment by credit card or EFTPOS and banking services
Increasing the minimum guaranteed annual payment for LPOs and introducing a minimum payment for CPAs
Increasing payments for providing working space to mail and parcel contractors
Increasing payments for representing Australia Post to the local community
Removing the EPOS transaction shortfall fee

In a move that respects the ownership Australians feel over Australia Post, they have opened an online conversation through which they are seeking feedback on a range of fronts including their announcement last week. Newsagents with LPOs ought to take a look at this as a channel through which to communicate with Australia Post about concerns.

I’ve whacked Australia Post a bit here. This time, however, they deserve kudos and appreciation for how they are dealing with a complex set of challenges. A lesson for newsagents is that Australia Post is publicly embracing change on a range of fronts.

Thanks to Tech expert and commentator Paul Wallbank for the tip on this.

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Australia Post

Why I don’t feel sorry for Australia Post

I am surprised at the easy run journalists and news outlets have given Australia Post over the last few days, reporting on the decline in the use of letter mail, that AP will open Saturdays and that the organisation faces challenges that if not met could require financial support from government.

The decline in mail is not unexpected – I’ve been reading about it for more than ten years. Australia Post leadership should have been factoring this into their plans for at least that long as should their shareholders.

As for the comment that they could be in a position of needing government support, Australia Post has, as I understand it, provided the government of the day with excellent dividends. Why did the organisation and or politicians plan for structural change and retain some of these funds to help it navigate changing circumstances.

Australia Post government owned retail outlets in shopping centres have had a dream run for decades, trading under the protection of government ownership while they targeted family run newsagencies. I know from personal experience they were not forced to open in low trading periods when penalty rates applied. My newsagency was price checked by government employees as they sought to take sales from us.

Special treatment by the landlord is one of several benefits they had as an ‘essential service retailer’.

No, I don’t feel sorry for Australia Post.

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Australia Post

Supermarket giant Tesco at odds with postal workers union in Ireland

A deal between AN Post and supermarket giant Tesco to place postal points in supermarkets will harm post offices according to a report published by Independent.ie.

This is another most by a postal service pushing their traditional services into mass retail and thereby challenging the postal service model.

The Tesco involvement will have the Australian supermarket giants watching – just as LPO operators should be watching.

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Australia Post

What’s in the National Commission of Audit report for newsagents?

The National Commission of Audit report was released in Canberra today and like any special interest group I expect newsagents to be asking what’s in this for us, how will we be affected.

It’s the call for flu privatisation of Australia Post that plays closest to our backyard. While I am all for a privatised Australia Post, especially their retail network, the impact would depend on how it’s done. On the retail network, for example, I’d give first right to local newsagents to acquire. But I doubt that will happen.

The Audit Report itself is what you’d expect from economic conservatives. The commission was put together in a highly charged political climate and backed by shrill about a budget crisis that is more fiction than fact in my view.

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Australia Post

Staples introducing postal counters in some of its US retail outlets

US stationery giant is introducing US Postal Service sanctioned postal service counters in some of its stationery stores and US postal workers are understandably angry. So far 82 Staples outlets have introduced the counters. Reports claim that the hourly cost of someone on the postal counter goes from around $25 an hour for the US Postal Service worker to $8.50 an hour for the Staples worker.

This is a story to watch on several levels: Stapes in Australia, Australia Post continuing to evolve its model, newsagents looking to expand foot traffic generators and competitors of newsagents looking to broaden their appeal. To explore this story from the US further check out the results of a Google search.

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Australia Post

An amazing new product from Australia Post that bypasses retailers

auspostpostacrdIn doing some research for postcard products I discovered the Australia Post postcard App. Curious, I downloaded it and sent myself a postcard. I expected that for the $1.99 cost I’d get my photo on a think piece of paper looking good but not like a regular postcard.

I was wrong.

What I received was a terrific rendition of my photo printed on think card stock in excellent colour and on the reverse was everything I included. The photo shows the back side of the postcard. While I went with a particularly geeky message: Hello world, you can type a message of up to ten lines long.

This is an excellent product from Australia Post. It demonstrates how much the organisation is changing, how they are seeking out new revenue stream opportunities. They are doing what we all need to be doing – looking for new new traffic, new revenue and opportunities to leverage our past for our future.

While I am happy to whack Australia Post, this time they deserve kudos.

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Australia Post

Hubbed versus Australia Post price comparison inaccurate

I’m told the price comparison published under the namers of Hubbed and POS Solutions to newsagents last week contains wrong pricing for Australia Post. Here is the correct pricing from an Australia Post LPO this morning:

  1. 3 kg Parcel Post satchel from Aust Post is $13.40 compared to $13.95
  2. 5kg Parcel Post satchel from Aust Post is $16.70 compared to $16.95
  3. 3kg Express satchel from Aust Post is $14.80 compared to $14.95
  4. 5kg Express post satchel from Aust Post is $23.60 compared to $23.95.
  5. You also get a discount of buying in packs of 10 from Aust Post.

This pricing came into effect two weeks ago.

UPDATE: (23:29) Another contributor here has advised that the Australia Post price above does not include a signature on receipt whereas the Hubbed price does. (You can see this in their comments).

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Australia Post