Printers of direct mail and catalogues can access PMP’s national distribution network in a new PIAA scheme to cut member costs.
Letterbox Marketing Plus will provide preferential pricing and access to PMP Distribution’s more than 14,000 local walkers in over 30,000 neighbourhoods around the country as well as sales and marketing training support.
The scheme only applies to unaddressed mail (catalogues, flyers, etc), so more personalised direct mail and transactional mail would continue to be delivered under current arrangements.
While the association does not say so directly, the service would act as an alternative to Australia Post distribution for unaddressed mail, with bulk mail hit with big price increases every year and stamps about to cost $1 each.
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PIAA chief executive Bill Healey says the partnership with PMP means printers can more effectively sell direct mail and catalogue services to their small business clients.
“Every community has its share of businesses including restaurants, general retail stores, real estate firms, hairdressers, sports groups, local government and tradies who can benefit from using letterbox marketing,” he says.
“Catalogues, flyers and leaflets are experiencing strong performance in retail markets and have a proven track record of effectiveness that local businesses can use as the major stores do.
“We already know that local businesses on average spend around $15,000 each year marketing themselves, so this presents a huge opportunity for printers to tap into a ready income stream.
“The reduced rate for members is lower than postal and other unaddressed mail services, so there is scope for good margins on distribution in addition to their own print and design services.”
Sensis Direct managing director Mark Mina says more competition is overdue, but the infrastructure, reliability and logistics required is mammoth.
“It is not small. And it has to be very timely and credible,” he says.
“The issue is that Australia Post goes national, regional, country, everywhere. I don’t think there is any other organisation that can do what Australia Post does on the size that it does.
“But if PMP concentrates on the inner cities and suburban businesses than that is great but as a mailing house then I have to divide my mail into two; what gets delivered by PMP and what gets delivered by Australia Post – which will deliver to the country.”
Mina says part of the reason Post has increased its prices is due to reducing volumes, and if this initiative reduces that even more it is going to hinder the survival of Australia Post as a whole.
“I am not backing Australia Post, I am not backing PMP, all I am saying is the amount of volume generated needs to be a lot more for there to be infrastructure,” he says.
“Sadly we have a continent to service so the problem we have is small population and vast area. So the logistics of delivery is much more costly here then other countries.”
The service will include giving printers online quotation, mapping and district profiling tools for maximum coverage or for distribution segmentation around 13 different profile groups and 50 types of persons in postcode areas.
Profiles include household size, age, sex, education level, family size, cultural background and income.
The PIAA will run a free webinar on the scheme next Tuesday June 23 at 1pm. Printers can register on the PIAA website.
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