Australia Post is a sinking Titanic.
Mark my words.
Unreasonably, Australia Post keeps putting its postage and shipping prices up.
You know why?
Because fewer people are using the service.
Simple maths says: 100 users multiplied by $1 stamps is $10 revenue
1000 users multiplied by $0.01 stamps is still $100 revenue.
Why are fewer people using Australia Post?
Because Australia Post is putting their prices up.
High postage prices are longer viable, especially in a ubiquitous digital world.
You can cry “inflation” or “costs” etc. etc., but it’s bullshit.
43% increase in domestic stamps is 10+ times the rate of inflation.
The service is outdated, not relevant and most importantly not competitive.
Don’t believe me?
I used to use Australia Post for my e-commerce business.
They would charge me $9 to post my items Australia wide.
I eventually swapped my distribution to China (where my suppliers also were), and China could deliver Australia wide for free.
For fucking FREE!
Internationally.
Don’t give me “inflation” or “costs”!
Australia Post needs to do the very opposite which is counter-intuitive and will not make a profit in the short term but will on the long term:
Drop postage prices and go for the bulk transactions.
Win them back from the Chinese (I have nothing against China or Chinese saying this – it’s simply a business decision.)
I’m not sure the CEO was smart enough for that.
Or maybe he just liked his $5,6000,000 annual paycheck.
That’s 5,6000,000 stamps saved.
I’m not the only one who thinks this…
On 7 February 2017, Australian Prime Minister Malcolm Turnbull criticised the CEO’$5.6 million salary saying, “As the Prime Minister and a taxpayer, I’ve spoken to the chairman today. I think that salary, that remuneration, is too high.”
On 23 February, Australia Post announced that the CEO has resigned as managing director and CEO of Australia Post, and would step down from the role in July 2017.
Two weeks and $215,348 later.
You can’t un-shit a bed.
You have to throw the sheets and mattress out and start again.
That’s the CEO.