Postal price rises kick in today despite industry outcry

Basic postage rates have been increased by 5c today (28 June) despite outcries from the print community that it will affect productivity.

"In an increasingly competitive market, all this will do is hasten the switch to other media channels," Australian Direct Marketing Association chief executive Rob Edwards told ProPrint.

"The industry should have had more time to adjust to these changes," he added.

Basic postage stamp price has risen from 55c to 60c after Australia Post received clearance from the Australia Competition and Consumer Commission (ACCC).

The price increase is only the third rise put in place by Australia Post in 28 years, but the second in the space of under two years.

Mark Mina Geon Group's business development manager, mail, agreed with Edwards that the increase would impact on direct mail users' budgets and reduce the amount users send out.

"I think direct mail will become a premium product. Rather than use the norm, people will perhaps spend a bit more," he said.

Australia Post said that it makes no profit from it reserved letter service.

"While we understand no one likes a price rise, we've worked hard to keep price rises to minimum," said Australia Post executive general manager of Postal Services Jim Marshall.

"In fact, the basic postage rate has not even kept pace with inflation over the last two decades; if it had the price of the 55 cent stamp would actually now be 70 cents."

At the beginning of May, an online survey by Printing Industries revealed that some 82% of printers believed their productivity would be affected by the postal price rises.

The results of the survey showed that 77% of respondents believe the proposed price increases will drive their clients to alternative marketing channels.

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