AUSTRALIAN SMBS COULD SAVE BILLIONS OF DOLLARS IN OPERATIONAL COSTS IN 2009

Over $3 billion dollars in savings are being lost by Australian SMBs who have not implemented smart mail practices, according to new figures released by leading mail technology provider Pitney Bowes Australia.

Pitney Bowes Australia’s 3,500 SMB customers[1]currently spend $20 million on postage annually[2]. Utilisation of Pitney Bowes solutions has helped these companies increase efficiencies and save costs through postage discount breaks.  With an average cost saving of 20.5%[3][3], this represents  almost A$5.2 million off their total operational cost bill.

On average, the company’s SMB customers are saving over $1,500 dollars each annually. “With almost two million SMBs[4] in Australia this represents a potential saving of over $3 billion,” said Michelle Sheehan, Postal Relations Director of Pitney Bowes Australia.

“The economic environment over the next 12 months will serve as an impetus to force businesses to look at what they’re doing and get costs under control. The potential cost savings of smart mail practices should not be underestimated. The figures speak for themselves. Which SMB can afford not to shave 20.5% from their costs?”

Implementing the systems and technology needed to gain the savings available to SMBs is quick and simple. Initiatives include consolidating mail processes, barcoding and validating addresses, using postage meters and reducing the size of envelopes or using standard business envelopes where possible.

“From a purely financial standpoint this is a no-brainer. Additionally, smart practices such as these drive further efficiencies throughout a business and contribute greatly to creating an open and mutually-beneficial dialogue between a business and its customers.”

Australian business is increasingly realising the benefits of employing direct mail, in tandem with electronic messaging technologies, to improve the effectiveness of its customer communications. In 2007/2008 Australia Post recorded a 9.4% increase in the volume of direct mail it delivered[5]

“There has never been a more important time for a business to stay close to its customers. The fact that this is achievable whilst also driving cost savings and efficiencies through the business will help many Australian SMBs navigate their way through turbulent financial waters.”

Footnotes

[1] Pitney Bowes definition of and SMB is a business with less than 100 employees.

[2]Figures cover the period June 2007 – May 2008.

[3]% average saving across all postage discount breaks for small letters (up to 250g). A minimum of 300 mailpieces applies to some rates.

[4]Actual number 1,951,692 Source ABS Counts of Australian Business, Less than 100 employees) 2006-2007.

[5]Source: Australia Post Annual Report 2007/2008 – Core Business – Letters