The suppliers spoke to ProPrint in the wake of this month’s massive business failure, when the market leader called in the administrators and cut 300 staff. Estimates had put Australian Envelopes’ market share at up to 50%.
The collapse left hundreds of customers in the lurch. One customer was Geon, which had recently signed an exclusive deal with Australian Envelopes.
A Geon spokesperson said: “The supplier called us an hour after administrators went in and although we didn’t want to jump ship straight away, they said they were not guaranteeing any work. So we had to pull our jobs the same day.”
Geon’s work is now spread across a number of suppliers.
Candida subsidiary Print T Mail has seen volumes increase dramatically over the past few weeks in what is traditionally the sector’s “quiet period”.
Print T Mail Victorian state manager Trevor Franklin said: “We are doing our best to pick up the slack for all the customers that are out there after the Australian Envelopes situation.
“The advantage is that this is a bit of a quiet period being at the beginning of the new financial year, but by September we will really see the full impact.”
Cheque-Mates chief executive Rodney Frost said the trade supplier had seen a sharp upturn in envelope orders following a quick-turnaround marketing campaign.
“We sent an email out to around 3,500 people to let them know that we have a particular solution and we have been overwhelmed by the response.”
Cameron’s Group general manager Troy Cameron added that expansion could be on the cards.
“I think everyone has been a lot busier and we have seen an increase in business, but we will wait and see how the situation pans out before we make further plans.”
Rival suppliers accused Australian Envelopes of starting price wars over the past six months. One printer said the only winners had been print management companies.
Frost said there had been marginal price increases across the board. “In terms of pricing, some customers are expecting the same price, but pricing has generally gone up by about 10%.”
Despite some reports of hikes of over 50%, most envelope buyers who spoke to ProPrint said price increases had settled at around 10-20% for spot purchases.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter