Two wildly contrasting stories have led the print conversation this month. On the up side the virtually non-stop stream of good news coming from the nation's biggest printers in their annual results; on the down side the apparently suicidal strategy emerging from Australia Post in regard to its mailing business.
The annual reports were led by the nation’s biggest printer PMP that’s report card could hardly be better. Following the implementation of the company's so-called transformation strategy three years ago, the print giant is back in the black, has virtually paid down its debt and, shock horror, is paying a dividend. CEO Peter George says it is now set for future profit growth.
Key to PMP's strategy has been to abandon low margin work, with the result that its turnover is down by a fifth on three years ago, and that surely is the biggest lesson for everyone with a print business – working for low or no margin 'just to keep the presses running' is a doomed strategy. Well done to Peter George and his team for getting their focus right.
Wayne Sidwell is another with a clear focus and a very impressive set of results. His Wellcom Group continues to blaze a trail here and overseas by identifying what customers want and giving it to them. Opus too is a turnaround story, from massive loss to decent profit this time around, again with focus at the forefront.
As far as Austraila Post goes, focus seems to be AWOL. The mailing monopoly appears to have decided the best way forward for its loss-making letters business is to kill it off, with its madcap plan to dramatically raise prices while at the same time reducing services. Direct mail is a proven means of engaging with a target audience, but not if the price skyrockets, and not if mail is not delivered. AusPost seems to have cut its relationship with the PIAA and now seems to want to cut its relationship with the entire print and mailing industry.
You may or may not have mailing as part of your business, but virtually every printer produces some work that at some point is mailed, and as such the AusPost strategy will affect almost everyone. PMP, Wellcom and Opus have shown that by having a clear focus and concentrating on core business even the largest companies can turn themselves around, but don't hold out too much hope of Australia Post doing the same.
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