LPO Premises

LPO premises is often a hot topic at POAAL meetings. How much space in your business does Australia Post want? How much floor space in your business should be allocated to Australia Post work? What is the balance between Australia Post-sourced work and other? How much space should you allocate for private boxes? How much signage can you use inside your premises? Where should you place the EPOS terminal and scales? Can non-AP billpay be transacted at LPOs? What do you do if AP wants to categorise your LPO as "stand alone"? (Stand alone LPOs may sell only AP-sourced products and services in the designated premises.) These and many other questions are posed by Licensees when considering how much of the floor space in their business should be dedicated to AP-sourced business.Licensees should note that the floor space allocated for only AP-sourced business must be agreed between the Licensee and AP - it must not be imposed on the Licensee by AP. [Refer 1.2.1 and 1.2.2 of the LPO Manual.] When considering the allocation for defined AP floor space at their LPO, Licensees should consider many factors, including foot traffic, margins, staff and customer safety, security, mix of business and Protected Products (Annexure B of the LPO Agreement, 4.1.6 of the LPO Manual). Licensees wanting more information should contact their POAAL State Chairman, or come along to a POAAL meeting and ask the question.Licensees should remember: it is your business and you know your customer mix, however Australia Post is a strong brand and can draw foot traffic for your entire business. Aim to achieve a good mix of business to give balance to your investment - this will help to reduce the impact of seasonal or other "ups and downs."POAAL has prepared a sample letter for Licensees wanting to change their floorplan.Download sample letter (153kb)Prospective Licensees should look for the floor plan of the premises, which must be attached to the LPO Agreement provided by the Vendor and the Business Agent/Broker along with the Disclosure Document and other papers. A copy of the LPO Manual should also be provided.New Licensees should be particularly careful to scrutinise any floor plan or changes to floor plans handed to them by AP. Do not simply sign any floor plan provided by AP before you have checked it carefully and considered the ramifications of any changes proposed by AP. Changes have the potential to limit your income. If you have any questions, ring a POAAL representative or check the implications with your solicitor before you agree to and sign the floor plan. Refer again to the LPO Manual 1.2.1.Licensees selling their LPO should ensure that any changes to the floor plan demanded by AP as a condition prior to sale will not impact adversely on the business - this could have an impact on your sale price. If after discussion with AP there is no agreement on floor plan, then lodge an LPO11 to initiate the dispute resolution process.