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Federal Government chases Mother’s Day business

auspost_mum.JPGIt’s disappointing to find my newsagency competing with a government owned post office for traditional Mother’s day items such as cards, wrap, gift boxes, social stationery and desktop gifts.

This two page flyer hit my letterbox and I am sure millions of others. The government ownership of Australia Post and the respect for its national brand enables them to do these things more effectively than any small business channel.

That Australia Post continues to encroach on traditional newsagent categories extends the mockery of the Federal Government’s small business policy. The Government is happy to use its own protected brand to take business from newsagents – not only my newsagency but the 865 others who directly compete with a government owned Post Office.

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Australia Post

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  1. Fre

    But was the post office near the newsagency open on Sunday? Given the trading patterns of the Government owned outlets, I would presume not. Thus, they sell your products without the burden of Sunday penalty rates.

    As an aside, why is it not possible for non-post office outlets to buy stamps to sell at a profit?

    Public transport tickets, while only allowing a gross profit percentage of 5%, can at least provide the seller a return.

    I know many newsagents sell stamps, for no profit, just to provide service to their customers, particularly when post offices are shut!!

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  2. Kevin

    It is possible to purchase stamps at a discount for resale! We are a “POST POINT” agent which enables us to purchase stamps etc from our local Post Office for 6 % discount. We fax through and then line up to pay cash for our order. Of course the catch is that there is an annual fee of approx 350 or 550 dollars, depending on which merchandising unit you agree to. It takes a
    lot of 6% commissions to cover that! To the best of my knowledge no body from A P has been out to check on our site in approx 8 years since we started.

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  3. Jarryd Moore

    Kevin is right, 6% commission does not cover costs involved with Post Point. We have Post Point simply to provide the service to customers.

    While i don’t really mind that we have to compete with a government entity, it is that entities legislated monopoly on products and services that concerns me. If all newsagencies were able to approach Australia Post and request the status of an LPO there would be no real issue, but that is not the case at the moment.

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  4. Luke

    Go to ebay and you can get stamps at around the same discount 5 to 6% and avoid the post point fee.

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  5. mark fletcher

    My big beef is that Australians created this brand and now the government is using it to encroach on territory which is vital to small business. The is not the fair go the government often talks about.

    mark

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