Australia Post’s plans to hike the price of stamps and extend its delivery times are likely to go ahead, and the price increase is set to extend to all commercial and bulk post.
The Australian Competition and Consumer Commission (ACCC) has given Aus Post the thumbs up to raise the price of stamps from 70 cents to $1, and the price of discounted commercial bulk stamps will increase to 79.5 cents.
A spokesperson for an Australian mailhouse business who wanted to remain anonymous commented on the price increase, describing it as ‘crucifying the industry’, and says it will ‘destroy commercial mail within the year, from bookbinders to promo post’.
Australia Post manager of mail products and services Alistair Tod confirmed the price increase and extended delivery time and says the changes will affect PreSort commercial customers, for machine-addressed bulk-postage.
“Mail costs for PreSort will also rise, but not at the same price as letter stamps,” says Tod
“It will go up to 79.5 cents, and there will still be discounts for buying bulk mail.”
The national postal service is notching up the prices in response to the company’s first loss in more than 30 years for 2015, with sales plummeting $222m.
[Related: Industry condemns price hikes]
Mailing houses using PreSort on a regular basis will feel the sting of the price hikes, some forecasting a reduction in volume of printed correspondence.
Budget Mailing Services use PreSort bulk-postage, and director and general manager Steven Hoy says the price climb will have a ‘significant impact on the mailhouse industry’.
“It will definitely initiate a movement in mailhouses which use PreSort and bulk mailing systems every day,” he says.
“It will result in a reduction in volume, and it will lead to a split to more digital based communication.”
Whilst many companies are shifting from mail correspondence to email and sms, Hoy says using post and print will always be the most personal method of engaging with consumers.
“Post is the best way of communicating with and acquiring new clients, as mail interacts with our senses and capture attention in a way email can’t.”
Hoy says the hike in stamp value will make NSW-based Budget streamline its mailing services in order to reduce costs and post wastage.
“As a company and in the industry, we will have to be a lot more intelligent with our mail and ensure every single client is reached, otherwise you’re just losing money.”
The national mail carrier is expected to increase large letter postage at 250-500g by 70 cents.
ProPrint contacted PIAA chief executive Jason Allen who was not available for comment.
Australia Post price increases will be effective on January 4 2016.
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