LPO Payment Review - Your say Stage 1

LPO Payment reform has commenced and calls for feedback starts here!

HAVE YOU SAY! Please complete the survey by the Thursday 29 March to ensure your feedback gets to PIP


LPOG, since our inception, has been advocating for a complete overhaul of our payment arrangements with Australia Post, as we have little faith the current system, drafted in 1990, and introduced in 1993, before most of the work we do these days was even a thought bubble. It most certainly does not reward Licensees in a commerially sound manner for the work we do.

Finally that overhaul has commenced, and is being undertaken by a professional and collaborative working group that is made up of LPOG, Partners in Performance (PIP), The Accord Group and Australia Post, and it must result in a fairer and more equitable, sound commercially based, payment system for our future viability.

Part one: Looking at what the payment structure we currently have offers, and drilling down into the pros and cons, efficiencies or inefficiencies of individual payments.

Here is your first chance to provide feedback and highlight areas that you would like to raise. This survey has been designed by PIP to assist them to understand our pain points so they can look at what could improve and maintain our viability.


Lets make sure they hear the loud crowd 



Stamplickers's picture

What would be a fair dollar value for our time per hour. My thoughts that amount must have, wages, general office costs, insurance, rents or rates & land taxes, technology costs etc factored into hourly rate. Using last years financials I have calculated that it costs our office approx $90 per hour to run our business. My question now is would $130 per hour be considered an acceptable hourly rate to charge our offices time out at. I was thinking of using this amount to complete payment review?

As I understand PIP has done a very comprehensive study on this issue back in 2015. Is this survey in addition to that report? or AP wants to start all over again. Why AP is not implementing the recommendations of that report or this is another "delaying/time buying" tactics from AP.

LPOGroup's picture

The previous PIP review was to drill down into several payment categories and to determine whether they were fair or not. The next step was to determine what would be fair if the first step found that a payment was not fair. Step 2 did not get very far and LPOG has been on that ever since. Step 2 is now in progress and is what this is about but now we will have the whole of the payment structure under review and analysis, instead of a few select items that were cherry picked last time.

PIP will be doing the numbers and this survey is just seeking feedback for our opinions on our perceived pain. Items such as direct costs to serve will be determined as part of the overall reform, but for now you just need to determine what your opinion is on what it costs for you to serve. 

The new structure will not be a one size fits all model so the directs costs will be more reflective of your cost to serve, but that is part of the scope of the work for PIP to manage.

Gail's picture

The Survey
I have just started to gather my thoughts for this survey. As I see it, I can talk about 10 separate topics (if I need to) and link each topic to a specific gripe. I am sure that I will forget some of the important ones so I would like all of you to jog my memory about what you would talk about. I am starting off with parcel scanning and redirections but I will also do concession stamps, PO Boxes, EIS and photos.

maggiesimpson's picture

Why only 10 topics?. How much did it cost to use that survey monkey??? Dot point would have been better. Anyway I suppose its better than nothing (that's if we get an outcome). Came up with 10 in a heartbeat without even really thinking, including parcel payments, PO Boxes, redirections, contractor housing, banking, streaming mail, lack of ID checks (TFN etc), BHF/reduced rates (have to figure out what box), operating times, etc etc and yes they all seem to link together.

You can submit the survey more than once

Maxi's picture

Wow! That took time. Don’t forget eBay packaging, Foxtel returns, customer poaching.... the list could go on and on like the song that never ends....

Treads's picture

OK I did mine of the bat first thing this morning, I covered PO Box parcels, street addressed carded articles, representation allowance, AP poaching selling online, officeworks selling stamps, mail redirections, banking back office armaguard, AP postpak/products margins, um, network rationalisation, I think thats it.

LPOGroup's picture

I spent 2 hours and only got 4 done and then it was midnight. I completed to my satisfaction WU, biz and passport banking, EIS payment and then EIS inefficiencies. I am just going to do a few every day until the 29. My cup runneth over, but I suspect the poor PIP guy has created a monster, but he set it up so we may as well give him all the details we can think of.
Jan's picture

Good and bad! Good that I can get some of the poison out of my system, bad in the way that for every issue I tackled, it raised more! Seriously though, it really paints a picture doesn't it? We know we are losing money, we know we are not doing well and are being ripped off, but to put it all down like that....scary yet powerful.

LPOGroup's picture

Couldn't agree more!

Is the cut off date of 29 March going to be stuck to religiously. From the comments above it may take awhile to complete properly and as I only received the email about it last night I don't think I will be able to complete it. I will try and do as much as I can but I run a small Post Office by myself so have limited time - but I will give it my best shot.

LPOGroup's picture

Pretty sure it has to close on the 29th to try to get the details crunched down to be able to be discussed at the next meeting on the 6th April. There has been over 1100 views of this post so if half that number has put in a response there is a lot of work for PIP to do, just to sort out what we are saying. I am just doing a few each night then returning the next day with more topics. Just do what you can, if we all do a bit we should have a lot of feed back.
markim's picture

Its just like a merry go round it just goes round and round and round