Distribution Thanks to Blick, Swiss Post can offer comprehensive, addressed early-morning delivery throughout German-speaking Switzerland. Is it now trying to force publishers to their knees? Michel Kunz, Head of PostLogistics/PostMail and thus Swiss Post’s chief logistics officer, weighs in.
WW: After Ringier was awarded the contract for *Blick*’s early-morning delivery, Swiss Post solicited bids from various early-morning delivery companies affiliated with the publishers. Will there be collaboration with some of them? Michel Kunz: Not in the initial phase. We will launch the Blick early-morning delivery service ourselves. We can also rely on our own staff from the daytime delivery service—at least as a temporary solution. However, collaborations with individual distribution organizations of the publishers are possible at a later stage.
What's the situation in Bern—will Bevo, the 50-percent Swiss Post subsidiary, be included in the *Blick* early-morning delivery service from the start? Yes, Bevo will handle early-morning delivery in the Bern area.
Some publishers are outraged by the postal service’s new addressed early-morning delivery service. They say it’s unacceptable for the postal service to first raise newspaper delivery rates and then use the additional revenue to compete with publishers in early-morning delivery—and to do so with federal subsidies, no less.(laughs) It would be too good to be true if we had a financial cushion from newspaper transportation. But that’s not the case. We raised the rates because, as is well known, the federal government reduced its subsidy for newspaper transportation rates from 80 million to 30 million francs. But the rate increase doesn’t even make up for 40 percent of the 50 million francs we’re losing. In short: Despite the rate increase, we’re now earning less than before.
What do you think of the following theory: With its addressed early delivery service, the Post aims to make life difficult for Zuvo and its partners until they give in, agree to cooperate with the Post, and, for example, acquire a minority stake in Postmail AG. Power games are not our intention. The reason we’re entering the addressed early-delivery market is different: With the elimination of some subsidies, standard daytime delivery is becoming more expensive. Consequently, the price difference between same-day delivery and the more expensive early delivery will narrow. However, this will make it more attractive for publishers to include magazines in their own early delivery services in the future—volumes that will then be lost to the Post’s same-day delivery service. It is this development that prompted us to move into addressed early delivery. Our goal is to be able to offer a comprehensive distribution service from a single source—addressed and unaddressed early delivery as well as daytime delivery.
Let me put it another way: Is Deutsche Post generally open to publishers taking a stake in Postmail AG? We haven’t gotten that far in our thinking yet. For now, we’re waiting to see how the publishers react. After all, we can imagine including other titles in the early delivery service in addition to *Der Blick*. We’re currently in talks with various publishers.
How large has the price difference been so far between addressed early delivery and same-day delivery? And how large has it been since New Year’s Day? It’s impossible to generalize. This is because, under Swiss Post’s previously subsidized pricing, the weight of the shipment had a much greater impact on the rate for same-day delivery than for early delivery. However, in many cases, early delivery cost about 10 rappen more per item. The price, which is no longer subsidized, has now approached that level.
Interview with Markus Knöpfli
Not new territory for the Post—except for Bevo
In Bern, Swiss Post also provides early-morning delivery services in other areas. For example, it supplies the «Urschweiz» newspaper to its delivery personnel as part of its early-morning delivery service. “And we’ve been organizing early-morning deliveries for individual publishers for years now, for example in the canton of Aargau,” says Michel Kunz. In French-speaking Switzerland, Swiss Post holds a majority stake in Epsilon, a company that offers early-morning delivery services to publishers from La Chaux-de-Fonds to Geneva. (mk)