OfficeMax and Australia Post have done a deal whereby the Australia Post brand is being used to sell to launch an online office products store operated by OfficeMax.
This is a great leg up for OfficeMax as they can rely on the respected and proteected Australia Post brand to drive the business.
It is also another example of Australia Post leveraging its government ownership to take business from independent retailers like newsagents.
Sadly, the current and previous governments have not had the guts or desire to stand up to Australia Post and keep it focused on being a postal service rather than a commercial brand taking business from family run businesses like newsagencies.
If we were smart as a channel we would protest long and loud about this and fore the politicians to make a policy decision which stops Australia Post taking food off our tables.
Maybe we need to join forces with the posties, who have for the last few years been subjected to some pretty rough conditions at the hands of corporate AP, as well.
Hmmm the idea of a motorcycle rally protest is sounding better and better 😀
Not discounting anything you say however why not compete with them? Shouldn’t be too hard given their track record.
It’s not so much the Govt’s of both political persuasions not “having the guts” its two things I. a Low priority on their agenda and 2. Stamps happen to be soveriegn currency and to change the distribution totally away from Govt contol would take a change in the Act. I would suggest that this is just too hard for our elected M.P.’s to consider.
Perhaps by taking another view is it possible for newsagents to put to the Govt that we could also join the competition by selling stamps etc at the same profit margin as A.P. outlets? We could ask what is the criteria and compliance to able to accredited as a reseller. We could put a game plan to them of how we could increase their fall in sales with our extended hours and outlets.
We can only try for there is no agenda for them to stop doing what they always have -no votes in it I am afraid.
As an alternative have you thought of standing for the Senate as a representative for small business,? Noiw this would shake them up!
Graeme, my post is not about stamps. It is about Australia Post going beyond its Act and getting into areas unrelated to this. This is where the politicians can act. They can tighten the Act to stop Australia Post using its monoply protection to leverage their way into other business.
Hong Kong post started doing bulk posting discount for customer starting from almost 2 years ago. It works really well for the customer and it drives more sales and increase their revenue.
Maybe Australia Post should learn to focus on their own area instead of taking food off our tables as Mark said.
Mark,
I know it’s not about stamps and the Act comes under the ACCC. That isn’t the point pity we couldn’t discuss why for you have rightly been belting your drum for years-clearly it’s not working I am only suggesting a different approach. I understamnd stamps as much as anyones however they the stamps are the point of difference why else would anone shop Aust Post?
Graeme
Complience to sell stamps is another revenue source for AP. The cost far overrides any ability to sell at a profit and the hoops to jump through are excessive. I tried, and did not bother once I saw the outcome.
The real point is that the Govt is competing with me. Govt should not be in commercial business.
I understand the frustration and agree with it however by taking them on surely it would illustrate the unfairness of the compettition of using a Govt exclusive product as a lost leader which in turn is preditary pricing the rest of the range.
Anyway what about the Senate I was not joking. I believ you would do a great job not only for the newsagency industry but for SME’s? Think about it It is the only chance of getting proportionate representation in Australia.
Brett
Sorry part 2 of my blog is addressed to Mark re Senate election.
WHAT CAN WE DO TO COMPETE WITH AUST POST, THEY SEEM TO BE IN EVERYTHING I WAS AT THE GNS FAIR IN SYDNEY ON THE WEEKEND AND SEEN OUR LOCAL AUST POST OWNERS AT THE FAIR I THOUGHT THIS FAIR WAS FOR NEWSAGENCIES
NOT LICENSED POST
OFFICES CAN WE GO TO THIER FAIRS
Kellie,
For some time now they have been able to buy directly from GNS as members. It has been pointed out to me on this blog that GNS needs to go outside the industry to maintain competetive markets.
Now I am not sure wither is is only Newsagents LPO’S or LPO’s and A.P.’s Some one may enlighten the group.
Sorry Graeme, I missed the Senate point. Small business and newsagents in particular would need to want representation. I suspect that would not happen. Also, I have no interest at the moment.
Mark,
I understand you not wanting to apart from being the right type of canditate I believe that small busienss could have such a representation and would more than likely suceed. ANY TAKERS?
Kelli can you definately confirm that GNS supplies Post Offices.As a a share holder of GNS I would not be to impressed if this is correct. I thought they were set up just to supply newsagents.
Graeme, AFAIK it’s only LPOs that could purchase from GNS. LPO’s can source and stock pretty well anything they (we – I’m a newsagent/LPO) want so long as it doesn’t directly compete with any “official” Aus Post lines for sales revenue (ie: I couldn’t use another bill paying system that competed with the AP one or sell non AP packaging products such as unbranded padded bags) or doesn’t cause “harm” to the AP branding.
Carol we can confirm post offices shop at GNS we have two post offices in our territory and have seen one of them at least at GNS. Also, have seenthe stock in their shops
That is why i do not shop at G N S ,try Stationers Supply great service
What does “LPO’ stand for ?
Carol, a LPO is a Licensed Post Office(LPO) ie like some Newsagents with Post Offices in them which is quite a few around Aust, LPOs are small business as well so any policy changes with AP will affeict LPO’s as well to which there over 3000 small family business just like Newsagents.
i actually asked the owner of the lpo if he enjoyed our fair he said it was a lot better than aust posts and he did bye things from gns directly but he did tell me he didnt buy any of the toy lines from the catalogue as this would be stepping on my toes, i know business is business but i was glad he had’nt
D.R you raise a great point, we placed an order with stationers at 1pm and it arrived at 9am the next morning, with GNS it takes us about 5 working days. I know of a few business that are not shareholders of GNS but have accounts.
Before buying our sub newsagency we owned LPO’s over a period of 17 years.
Just a couple of points a) we purchased stationery from Stationers to supply our LPO b) Why do newsagents bother selling stamps…it reduces the qeues at the post office and assists them in selling our lines to customers. Some one wanting an ink cartridge or such does not want to qeue behind a dozen people buying stamps and will come to us instead for speedy service so WHY help decrease the waiting time in the post office. Surely this is to our detriment.
Brendan, I think most of us sell stamps to stop customers going to the post office in the first place. You’re right though, will all their stamp customers buying at the newsagents (who paid full price at the post office), it surely reduces the queues noticeably and as you say, frees them up to sell more stationery, ink, cards, gifts, bbq tools, sewing machines, and soon no doubt lawnmowers, TVs, lounge suites, fridges, second hand cars, hamburgers……….
Australia Post also seems to be quietly moving into other areas which will severely hurt small retailers – digital cameras and Apple devices. Last week Canon was in the marketplace briefing key retailers about its intention to launch a direct online channel, with Australia Post involved as some kind of partner, while Apple has been terminating retailer agreements, with Australia Post also mentioned as the alternative stockist/partner. Independent photo retailers have a similar relationship with many of their larger suppliers as newsagents dealing with publishers, distributors and other large suppliers. Perhaps there’s unity in numbers in pushing back against what is basically an attack on the small business sector…But under what banner?