BUSINESSES relying on direct mail as a means of communicating with their customers are facing a 20 per cent cost hike in July unless they change the way they operate.
From July 1 Australia Post will be removing the discount to bulk mailouts unless the envelopes are barcoded.
Possibly even more devastating for the direct mail industry is the removal of the discount for advertising mail next January.
Direct mail industry sources believe the cost of setting up a barcoding system could prove prohibitive for some operators.
Australia Post spokesman Ian Leggoe said businesses had been aware of the change to the bulk mailout discounts for up to three years.
“Since 1999 a number of letters and brochures have been sent to account holders and fliers have been distributed to customers at post office counters,” he said.
“The Australia Post website contains all details businesses need to know to implement a barcoding solution.”
Australian Direct Mail Association chief executive officer Rob Edwards said the impending removal of the discounts was already causing a change within the industry.
“We’re receiving feedback from our members that they are being more selective with mailouts and using different media such as email to reach their customers,” he said.
“Effectively the removal of these discounts will lift the cost of direct mail by 20 per cent.
“When this was announced Australia Post said it would lead to increases in efficiency that would be passed on to business. We’ve not seen any indication of that.”
One possible bonus for consumers is that this increase in costs could lead to a reduction in junk mail.
However, at least one business in the disabled workers’ sector has seen the new barcoding regime as an opportunity.
Workpower Incorporated business development manager John Beasley said the com-pany’s workers could manually apply the barcodes to envelopes for direct mail agencies.
