2. D&D Mailing Services Print Post Analysis September 2010 1 D&D Mailing Services Melbourne and Sydney Response to Australia Post Printpost Changes – Proposed February 2011 David Docherty 0417513059 David Sykes 0417516589 Lynette Sykes 0411612253

3. D&D Mailing Services Print Post Analysis September 2010 2 D&D Mailing Services D&D Mailing Services acknowledges the receipt from Australia Post of their “draft” Print Post proposals dated 23 rd August 2010. In recognising that D&D Mailing Services is the largest Print Post consolidator in Australia Australia Post has asked us to analyse the information and make recommendations accordingly. We noted that there were some obvious pricing errors namely four instances where the higher weight bracket price is lower than the lower weight bracket price. Note Australia Post has been separately advised and we have yet to receive any amendment. D&D Mailing Services will provide Australia Post with a formal submission regarding this proposal highlighting the impact the changes will have on the publishing industry.

4. D&D Mailing Services Print Post Analysis September 2010 3 D&D Mailing Services The proposed changes were received at D&D Mailing Services and in order to fully understand the possible impact we took the following action: We selected some live data, 7 files, volumes between 2000 and 30000 articles. We amended our Print Post software to include the new pricing along with the new weight breaks, our software was also amended reflecting the changes to the local “sortation” and lodgement requirements. We had to re-calculate all of the pricing as it was supplied to us and included GST, the GST has now been removed and is not included in our evaluation. All data files were then processed through our current pricing software and then the same files were processed through our amended software, we used this data over all weight breaks. The process undertaken was as if we were preparing and physically lodging Print Post mail. We then prepared two documents which reflect any price increases or decreases, both documents are contained within this presentation. The process so far has taken about 20 man-hours. Pricing does not include GST but does include line haul, presentation and sorting.

5. D&D Mailing Services Print Post Analysis September 2010 4 D&D Mailing Services

6. D&D Mailing Services Print Post Analysis September 2010 5 D&D Mailing Services

7. D&D Mailing Services Print Post Analysis September 2010 6 D&D Mailing Services Summary and Recommendations. 1.Firstly, the prime rate of Postage for Print Post articles has been increased and it is noted that the covering letter makes no mention of this increase. 2.There are four basic errors that will need to be corrected prior to any further analysis. 3.There has been no increase to the current Print Post line haul rates. 4.The increase and decrease in pricing is a very good estimate and is based on the specific live data that we processed and was processed as if we were about to mail the job. 5.The average increase is best understood by viewing the last column of our pricing summary against each weight break. This can give you a guide to the impact in may have on your magazine. 6.If we were a publisher then our general appraisal of this proposed change would be that the changes and pricing are not acceptable especially given our current economic challenges. 7.The new draft pricing structure is too complex and generally too expensive. 8.Easier to leave pricing and weight breaks as is with an allowance of say 5 to 10 grams in each weight break without a pricing penalty. 9.Positive and negative responses from the publishers.

8. D&D Mailing Services Print Post Analysis September 2010 7 D&D Mailing Services This type of analysis and advance information is always advised to our customers and where necessary we become personally involved with their feedback, recommendations and ideas which are used with further discussions and representation to Australia Post on their behalf. As a free service we completely re-process all of our customers data files and advise them well in advance of any impending increases or decreases with their Print Post mail. Future pricing is then guaranteed unless there are changes to the database. We are very happy to discuss this service for our non customers for which we will charge a small processing fee. To avail yourself of this service then you should contact our Australian Distribution Manager, Mrs Lynette Sykes, contact details: Mrs Lynette Sykes lsykes@ddmail.com.au Mobile: 0411612253