The facts are Aussie Post is declining at the rate of 4 per cent per year for mail, and the equipment suppliers have confirmed a similar number in regards to inserting. Sadly long gone are the days of continued growth, where if you owned a mailhouse – that you could operate properly – you and your important staff would have a future and a reasonable lifestyle with work home life balance.
We in mailhouse land are now subject to what is happening in the land of print.
After visiting several well-known large Australian iconic companies that used to order large runs of mail (including one where a former top executive from AusPost works) it was clear to see they are doing everything they can to not send mail, due to the cost. I was gobsmacked when they took me through the numbers where they realised what they could save. It was also instructive when they shared their real thoughts about AusPost.
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Apart from the effects of GFC it is our particular market that is in decline. And we are not alone, for example there is no point is selling black and white TVs, or even colour TVs now, the TV world has moved on to panels, and in such a short time. Similarly the communication world is moving rapidly.
We must be pragmatic about this. There are still however some sectors of printed communications that are growing. But you will have to find them and adapt accordingly.
We in mailhouse land have looked at the printers in disbelief as we have watched their self and market destruction and what was happening in their market, until the last three or four years where we in mailhouses have all now been affected in some way or another. Hopefully we have learned from this experience that it is only those few well-run companies that will survive, by understanding their clients and their businesses, coupled with implementing the right technology and of course, having cash.
However having said that there are surprisingly some areas if you specialise in that you can still grow but you have to understand your business. That is a serious statement as it takes a long time to understand not only your business but your market. And of course to do this you need good people or you will not grow, let alone survive.
There are still opportunities but you must work on and at them. If you bring value to the market it will bring value to you. Are you doing anything in research and development – a term we coin when working on a market or an idea – to look to the future?
Fortunately mail is not dead (thankfully) as it still does give a high ROI if a campaign is well thought out. It is also tactile and we humans are tactile, but it is now about multi-channel and data integration.
We frequently ask our clients about what are their plans where are they going and how we can assist, it is amazing what comes out of such discussions.
Three years ago who would have thought that printed communications would be where they are now, and who knows where they will be in another three year’s time, but by getting out there we can have some control over our own destiny.
Mark Sayle is Future Sources chief executive.
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