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Publishers Could Face 7 per cent Print Post Increase in 2011

10 Dec 2010

On a sample survey of 200 magazines 73 per cent were in the weight bracket attracting a 7 per cent postage increase to apply in April 2011. Some categories 10 per cent.


Over the last 12 months fulfillment house, D&D Mailing Services located in Sydney  & Melbourne has conducted several Open Forums with the Letters Group of Australia Post as well as Publishers. The aim of the forums was to enable all concerned to put their views, concerns and requests forward with a view to Australia Post taking these discussion on board with particular emphasis on print post price increases.


As reported in Publishing Edge, the last D&D Mailing Services Open Forum Australia Post had put on the table a proposed overall increase of 9 per cent and this was firmly rejected by all concerned. It was also suggested at that Forum that greater weight breaks be introduced to enable more flexibility for Publishers when dealing with additional advertising such as onserts and inserts.


This was outlined in a letter to all D&D Mailing service customers which stated.


"It does appear that Australia Post has in fact listened to D&D Mailing Services with Publishers and taken on board recommendations from these Forums and provided some allowance for Publishers to be able to utilise the PrintPost service on more of a commercial basis."


D&D Mailing Services analysed over 36 live jobs with varying volumes and weights along with the various streams required by Publisher clients for each individual publication.


THEIR FINDINGS:


Based on the publications used in the analysis the weighted average for publication across the board does sit around the 3.1 per cent increase as outlined by Australia Post.


It was noted that there are now 22 weight categories within the Large Letter component of the PrintPost service alone and whilst the overall increase is around the 3.1 per cent mark individual categories can carry a much higher increase. In some cases this can be up to 10 per cent. It should be noted that some weight categories introduced offer a decrease up to 5.2 per cent.


The current weight category of 125 - 250 gram is considered the highest area of usage amongst publishers within the PrintPost service in Australia. The new split of this category highlights some significant differences:


125 175 grams - 3.3 per cent (decrease)
176 250 grams - 7.0 per cent (increase)


Based upon a sample of the last 200 jobs that D&D Mailing Services completed within this weight category it showed that 73 per cent of publications were in the higher weight bracket of 175 250 grams and therefore would face an increase of 7 per cent effective April 2011.


This is an example of where publishers will have to be careful with weights to ensure that they do not drift over the new threshold of 175 grams and other such like weight thresholds.


In some cases publishers may benefit from some of the new weight categories and enjoy the bonus of decreases. Some may be able to change the makeup of publications to take advantage of these incentives. However it is evident that where the current majority of publication volumes sit they may find higher increases than the 3.1 per cent overall increase suggested by Australia Post.


As a benefit to their publishing clients D&D Mailing Services will be analysing all customers publications and advising their customers of individual rate change as each mailing comes up.


OPINION/FEEDBACK TO THE EDITOR



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