Postal
Post announces price rise plan
(12 April 2010) Members would be aware that Australia Post has approached the ACCC for approval to raise its prices, including a 5c lift in the basic postage rate to 60c. It's no surprise – the talk around the place has been that Post wanted to do this after the ACCC issued a "preliminary view" in December stating it wasn't supporting a price rise at that time.
We're still reviewing the proposal and are yet to take a position on it.
We remain concerned about the impact that price rises have on making customers switch from mail to electronic communication. The CEPU flagged this concern in May when we asked - but never received - information on "price elasticity" - that is, what happens to your customer numbers if you increase your prices: do customers stick with you or do they break away?
But can we just ask another important and relevant question right now? When was the last time you saw a powerful, visible public advertising campaign by Australia Post to highlight the benefits of using what we all know is one of the best postal services in the world?
Instead, why do we see a lot of cash being spent on corporate sponsorship of events that can find the money on their own if needed (eg the Australian Open)?
Now's the time for Post to devote more focus on building brand loyalty and boosting revenue numbers through customer growth - as well as taking on the important challenge of reinforcing its revenue streams through the proposals it's putting to the ACCC.
- FINAL POINT: Can Post please stop talking itself down? It's easier for Post to blame the Global Financial Crisis and technology for dampening postal volumes - but they fail to mention how postal volumes GREW consistently for the years before the GFC … and the price rise of 2008.
For more information, contact the CEPU via feedback@cepu.asn.au