Australia Post Offices - How much do they make?

rambutann on 18/05/2014 - 22:01

Im just really curious how much they make.. More specifically the privately owned ones.
Is its a percentage of sales? Because they really don't do much in the logistical process of moving packages so I can't see why they would get much but if anyone knows please let me know!

The only two random facts that I know is that in Western Australia lottery west outlets make 8% of the sale of lotto..
Also, I was told it costs about $15,000 to manufacture a $40,000-ish Ford in Australia and that they used to produce 500 a day and now they produce 120 a day and theres big gaps in the production line so people just sit around doing nothing waiting for the next car to come.

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Comments

  • Daabido on 18/05/2014 - 22:52
    +2

    Does that cost of manufacture include all the ancillary costs of running Ford Australia? Material costs can be deceptive, but I'm sure all those parts just didn't come together and somehow make a functioning vehicle all by themselves. If the total cost including R&D and goodness knows what else, so many other pieces of running a business was really $15,000 then Ford would not be closing business in Australia.

    • rambutann on 18/05/2014 - 23:36

      This is just what I was told from an ex employee. I'm pretty sure that's just parts.. Now that I've done some googling they must have ridiculous overheads because they're losing just under a million dollars a day. Why don't they quit while they are ahead?

  • Daabido on 18/05/2014 - 22:55
    +1

    http://www.premierbusiness.com.au/listings.php?cid=2&page=3

    I Googled that for you. A lot it would seem, but the barrier to entry is extremely high on a price to earnings ratio.

    • rambutann on 18/05/2014 - 23:41

      The largest ones are making about $1000 a day in commissions.. I'm thinking it's a lot more complicated than just a simple percentage because they have to hold parcels for pickup and what-not. Thanks for the link!

      • CI on 19/05/2014 - 02:06

        they also do lot of document processing and verification (such as passports).

    • Boshait on 19/05/2014 - 09:51

      You have to factor in two full time salaries.

  • Davo1111 on 19/05/2014 - 02:11

    I can tell you they make a tonne of money taking a passport photographs, but hardly any with a passport application. That's why certain post offices will automatically deny your photo, even if it was done at paxtons where they check it with onscreen levels and then physically with the same guide auspost uses.

  • ldtl on 19/05/2014 - 08:39
    +5

    LPO's (the private ones), dont make much money. my dad owned and operated one for 15+ yrs and theres was only enough to pay the mortgage and eveyrday living expenses. we had to save up for yrs to go on holidays (not o'seas) and rarely ate out. the biggest money maker is having PO boxes, otherwise u make very little out of selling stamps or AustPost merchandise (i remember spending hours after school sticking stamps on parcels, cos we would get slightly more money from stamps than printing labels….). We used to make some money out of merchandise we source ourselves, and my dad made the most money when he retired and sold his licence…

    just to clarify the passport photo thing, my dad never did photos, and i cant say other photo aust post places are dodgy or not, but i can say for sure that the guidelines in place are set by the passport office and they are very strict on the requirements so that if the ur photo is even slightly out, they will reject it. so next time the postal manager says u need to take a new photo, fair chance is u will need to, it will save u weeks of waiting only to be rejected and start all over again. I've seen signatures where the 'tail' goes outside the box by less than 2mm get rejected and the same goes for photo where the hair so too 'boofy' and outside guidelines…

  • skillet on 19/05/2014 - 13:00
    +1

    You'll earn more selling Rambutans. Seriously, nice fruit from QLD many Aussie haven't tried.

    • punter1 on 19/05/2014 - 13:13
      +1

      how about Durians ?

  • whodidthat on 19/05/2014 - 13:20
    +2

    It's Ahmed Fahour reaping all the money in, not the actual post offices. Plus AP "climbing into bed" with ebay is stripping post offices of funds.

  • [Deactivated] on 19/05/2014 - 14:28

    I'm confused why the question is about Oz Post, but then Ford!? I also don't see how they make money from PO Boxes. Admittedly it's a few years ago, but I had one that cost $50 for 12 months. Larger ones were more. But even if you had 100 boxes @ $70 = $7000, big whoop.

    • punter1 on 19/05/2014 - 14:55

      Now the Medium box is around $220 per year

      • [Deactivated] on 20/05/2014 - 10:18

        $220!? Ouch!

      • Boshait on 20/05/2014 - 13:17
        +1

        The small box is now around $110 per year. Strangely a non-GPO box costs the same whether it's in the CBD or Outer Woop-woop.

    • rambutann on 19/05/2014 - 15:07

      The post has nothing to do with ford, it was just a random fact I thought I should share.

      Yeah i didn't think they would make much, I understand that a lot of the money would be made from selling internally sourced products such as cards and what-not but my local LPO barely sells anything non auspost related and i'm always curious about how they remain in business..

  • scotty on 19/05/2014 - 18:04
    +2

    Now AusPost also charges ~$5 to certify & sign a document.

    • cwongtech on 19/05/2014 - 23:27
      +1

      Wow…. That's ridiculous.
      Aren't JPs free? Although a bit less convenient.

      • cst on 20/05/2014 - 09:38
        +1

        Pharmacists in my area do it for free with a suggestion of a gold coin donation.

      • scotty on 20/05/2014 - 10:42
        +1

        AusPost licensees aren't JPs. See this:

        When an Australia Post licensee applies the fee, they are not doing so as a NSW JP.

  • asha300 on 22/05/2014 - 13:15
    -3

    to all that wonder how much LPO make, and the stupid comments that 'larger
    ones earn over a $1000 pd in commissions.
    The facts are that you just dont know, how LPOs are run and operated, the costs associated with owning and operating, staff wages etc etc
    LPOs are currently underpaid for the services they provide.
    Think you are on the premises from 9-5, really try 13 hr days, the cost of the peanuts to feed monkeys is greater nthan the NETT return to LPO owners.

    So before you accuse ANY LPO of making money get your facts correct.
    The comment regards Photos for passports, they make heaps from them, a lot of BS, the latest camera unit comes with a computer & printer etc etc
    that hads to be PAID for. Correct the photos MUST conform to DFAT requirements, its NOT the PO/LPO passport officer that say it no good,

    So please before you attempt to rubbish any LPO or Post office, please remove your head from your rear end.
    How do I know; I am an owner of an LPO.

    • rambutann on 22/05/2014 - 13:28
      +1

      Yeah you need to take a long hard look at yourself. At no point did anybody ever suggest anything of what you said.
      As for my comment regarding $1000 in commissions, that was a fact from the above post about an Auspost outlet for sale.
      That does not include wages or anything.

      This post was simply made because I don't know where they actually make money to stay afloat.

      Your whole comment relates to why I made this post.

      If you're telling us we don't know then why not educate me about what you do know.

  • asha300 on 22/05/2014 - 14:41
    -3

    maybe you need to read, and comphrend what you suggested.My post was to ALL to assist in clarifying the suggestions.As to educating you, sorry that would be a waste of space. as for the verification document fee.
    the time it takes to do this certification can vary from 5min to 10 mins
    and yes it happens many times a day, so we are intitled to charge a fee
    for service, just like everyone else in business.

  • Cheeper on 05/06/2014 - 13:27

    Not saying it is going to happen but it is possible that AP may one day be sold to private enterprise.
    Where would this leave those with a PO franchise?

  • myplan2plan on 06/06/2014 - 08:52
    +1

    An owner of a Post Office does many hours before and after the Post Office is open for business.
    The incoming mail has to be sorted (usually a 5.30am start) and if a weekend delivery of mail comes to the PO (usually on a Sunday afternoon) then that also has to be sorted. If it is in a small town, the Posting boxes where you can post a letter have to be emptied, and that mail sorted. PO in small towns are required by Aust Post to open every Saturday morning (including long weekends). The merchandise sold is pretty much dictated by Aust Post with a low profit margin (mobile phones, greeting cards, calendars, soft toys etc ). Once the PO has closed for the day, the outgoing mail has to be sorted ready for collection, the cash sales balanced etc.

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