New post rates in effect + Devalued U.S Dollar = ARGGGG

www-labels4less-com
Community Member
Small packet air up to $11.40 from $9.90 for 500gr-1kg. I wal already subsidizing my freight by only charging $6.00. This was fine last year with the U.S.$ worth so much more. Now its killing me. I just raised all of my shipping and my BIN prices.

Anyone else feeling the crunch?
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New post rates in effect + Devalued U.S Dollar = ARGGGG

And how does Canada Post help us small businesses out? By creating a useless VentureOne Card. It was of some help when I received a discount for the larger Expedited Parcels but CP in their wisdom canned that. It can only be used with Canadian Shipments and the only thing it does is allow you to send a parcel via Expedite at Regular shipping rates. Wow, big thrill, most of my parcels would have been sent out via Regular any ways so I'm really paying for insurance that, in most cases, isn't needed.

Also, one CP worked told me that when they (CP) came up with these rate increases the Canadian Dollar was way way down compared to the US. So CP figured they could get away with the high increase. Sort of get their piece of the pie...looks like they took 2 slices instead of one.

truecrimeink
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amberwoodottawa
Community Member
Same thing with the gas surcharge. CP came out with it last February based on the high per gallon charges in 2002 and despite prices drops every month, they continued to charge the surcharge with minor.05% fluctuations.

Malcolm
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treasure-pot
Community Member
truecrimeink, the V1 discount for Expedited Parcel - USA is not dead. Please see post #26 of this thread.

Bill


Bill


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your-chic-shopper
Community Member
truecrimeink ...the discount still in effect for expedited USA??
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shooger
Community Member
With the rise in eBay fees, Canadian dollar, and Canada Post fees, my profits are dropping quickly. Add to this the fact that eBay sales are down at this time of year, AND the product that I sell just got more expensive for me to get. You might not hear from me much longer, because I don't think I'll make PS status next time they do their count. This time last year, I could double whatever I put into my business. Now I'm making a VERY small profit - probably not worth the 6 hours a day I'm putting into it.
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rd1000
Community Member
Yes. If I couldn't cross the border to ship my products I would have to close down. I can't raise the shipping rates because I have to compete with US sellers. Thankfully most US sellers do not advertise that they will ship to Canada, because quite frankly I can't ship within Canada anywhere near the price they can ship to Canada for. It is rediculous. Canada Post is just another beaurocracy that has grown fat and lazy at our expense.

I took 72 small packets and bubble envelopes across the border yesterday. My bill - $90.00 US. I came back to Canada and mailed 7 small packages within Canada. My bill - $56.00 Cdn. Thank you very much Canada Post!

Rob
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amberwoodottawa
Community Member
I spoke with my CP rep today for about 45 minutes. He old me that they are loosing lots and lots and lost of business because of their high rates and they are aware that people are driving to the US to mail although he was more knowledgeable about people establishing warehouses on the US side and then shipping directly from there with nothing stored in Canada at all.

Makes sense, get 10 sellers, move your inventories to the US and still operate your business from Canada yet everything is shipped out of the US with USPS with a discounted rate amongst 10 sellers.

We talked about cubic rates and he admitted that I really got hit hard, more than a lot of people when they started charging cubic rates and I said I lost 50% of my business (all my guitar sales).

I also said that it wasnt fair charging us based cubic weight shipping to the US as they are not charged by cubic weight by USPS, all CP is doing is taking my instruments 100 miles to Montreal yet charging me as if they were delivering a 65 pound rock to California when all it is, is a 7 pound guitar 3' tall in a box.

He agreed on that point as well! But said there was nothing he could do about it.

After he tried to get me to use his electronic shipping tools I asked him about the hidden brokerage charges and he said that had to do with Peace Bridge Brokers who CP uses (at least here in the East).

He said that for items valued at over $200 US, the vendor is paying the US customer's duty on Expedited Commercial. I said there isnt an American company that is doing that and probably not a Canadian company that is aware of what you are doing. He said it was the CP customers' request to do it that way. I told him I was never asked and I know of no one that was.

He said that is what he was told and that is what CP is doing. Billing their customers for the American's duty.

You know it was refreshing to have him ackowledge this but this just shows you how out of tune CP is.

They admit they are loosing tons of business, in fact tons of customers yet they raise their rates.

We talked about my latest venture into selling comics and he suggested using prepaid envelopes at $10.85 each. So I told him I could mail them from the US with the same type of service for less than $4 and he said he know but there was nothing they can do about it.

You know it must be tough being a sales rep for CP. It would be like being owning a gas station selling your gas at $5 per ltr when the guy across the street is elling his for $0.72 per litre and all you do is say, I am loosing business and there is nothing I can do about it.

I oreded 10 P forms 2 weeks ago. They gave a separate pruchase Order number for each and then assigned a different CP order number for each and then mailed me 10 separate packages with one form in each package. And they dont know why they are lossing money and business.

Someone should get into Canada Post, fire everyone and tear the sucker apart and rebuild it from the ground up.

Prerequisite to work at the new CP: Must never have worked there or for any government agency or department before nor have any relative, living or dead who was ever employed there.

I honeslty cant believe that conversation I had today.

Malcolm



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www-labels4less-com
Community Member
I bit the bullet and raised my prices. Across the board $2.00 increase on my "BIN"s + a $2.00 increase in shipping charge.
GUESS WHAT!!!!!!!!


My sales are steady. No change. In fact I just had a record featured plus dutch auction with about 23 units sold!
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rd1000
Community Member
Malcolm,

Canada Post is not worried. When they need more money, they can just raise the prices again.

Rob
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amberwoodottawa
Community Member
Isnt it absolutley beyond comprehension to acknowledge that you are loosing customers, loosing business and increase all your charges for services plus charge based on cubic weight, add in fuel surcharges for the dwindling customer base?

I just received in the mail yesterday, a CP notice that they are now selling American Express Travellers Cheques. Thay are also selling domain names and you can do online bill payments through them.

Why dont they get back to basics and deliver mail for an affordable price? That is, after all their mandate.

Malcolm



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rd1000
Community Member
Yes you are absolutely right. I have noticed they are offering dozens of services outside the realm of mail delivery. They will never be able to compete with the private sector. No crown corporation or government service ever can. Their costs are just way to high. They have to maintain a monopoly on their service so they don't have to be competitive. You just know that the mail prices will be subsidizing all these other ventures. It is the one area where others cannot compete on a level playing field.

Rob
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your-chic-shopper
Community Member
After he tried to get me to use his electronic shipping tools I asked him about the hidden brokerage charges and he said that had to do with Peace Bridge Brokers who CP uses (at least here in the East).

He said that for items valued at over $200 US, the vendor is paying the US customer's duty on Expedited Commercial. I said there isnt an American company that is doing that and probably not a Canadian company that is aware of what you are doing. He said it was the CP customers' request to do it that way. I told him I was never asked and I know of no one that was
______________________________________________________-

Canada Post forgot to tell you one more thing , on items under the value of $200.00 . There are no duties , this means that the item clears customer with no brokerage fees and no paper-work for the item.

I will never forget the day my CP Rep was in my office , before they rolled out the hidden brokerage fees . I angree about the new cubic rates that had just rolled out at that time . My rep walked over to one of my mirrors , that's like a pizza box . He said 'this is what we are in tthe business of shipping, these are the items we like to ship around the world . We do not like shipping big items "

So now ...move forward to present day. Canada post started charging hidden brokerage fees . If nothing is being charged on items under the value of $200.00 Canada Post knows that this is the magority of the items they ship . Were does the extra fees they charge goto . Or should I say who get's too keep the extra fees .

You See Canada Post is putting another spin on this . This is why I call it a hidden brokerage fee . Because I personally know they are making money on the fee they slap onto the shippment
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amberwoodottawa
Community Member
Of course they are making money on all sorts of hidden charges without incurring any extra costs. The same thing when paying cubic weight on items shipped to the the US and they arent being charged by USPS. In my case identical instruments sold to the same person one month apart.

Month one I was charged less than $40 to ship a guitar to Arizona, month 2 I was charged $186 for the identical item yer CP only took my guitars from Ottawa to Montreal and paid USPS the same from Montreal to Arizona.

That is outright theft, nothing more.

PS I have over $1500 in outstanding charges I have not paid CP because of siilar cubic weight rip offs. I can understand a cost increase of even 50% over actual weight but 465% increase is too much to handle.

You would think that with all these 'rip off our customer' schemes, they would at least be making money.

Can you imagine running a monoploy, one of the largest left in Canada, and loosing money?

Malcolm
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www-labels4less-com
Community Member
There is no monopoly. There are many choices for shipping parcels to the U.S. and beyond.
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mirakbiz_inc
Community Member
Well guys, have you actually looked at alternatives to ship to the US? (besides driving to drop off your parcels to the USPS)

I don't mind CPC for all my Canadian shipping, I do enough to qualify for a good discount between what I do on eBay and my website. However for the USA I stopped using them a long time ago (un-reliable, 4 weeks for expedited & no guarantee for spresspost), I switched to UPS and I must say I'm happy with them. Recently I have been testing FedEx ground and it's a lot cheaper than UPS specially on BULKY items. I shipped some mailers to someone in the US recently and because it was a huge box (very light) it went to cubing; UPS was like $106.00 and with FedEx Ground wit went for only $48.00

Just go to their website and key in the dimensions and weight of some of your big parcels and see their estimated cost, you'll be surprised.

Only problem with them is that sometimes you may have problems with the pickups, but you can always drive to their office and drop off there.

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your-chic-shopper
Community Member
I tried fedex and for my company it truly was the worst thing I could ever have done

I sell masks and handicarfts , so my thought was they would take care of my product better ...WRONG

I had more masks arrived damaged due to Fedex ground. The price seems lower but when I had to add the 5.00 service charge to the cost to ship to American address

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rd1000
Community Member


You cannot offer the same service as Canada Post and charge less. It is a monopoly.
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whoscloset
Community Member
mirabiz_inc

Who did you use to clear customs in the US and how much did that cost you? I've been researching this lately and found that FedEx ground is so much cheaper as they don't offer customs clearance.

Monique

Monique

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mirakbiz_inc
Community Member
I don't worry about the customs clearance, since that it's the buyers responsibility (they are the importers). I just make sure that the correct documentation is attached to each order (I provide a commercial invoice with all the required fields, I use an excel template and just copy the address from the paypal email)
As long as the orders are under $200.00 they usually don't have to pay duty or taxes (it's not like Canada where they stiff you with the GST and PST for daring to buy outside)

Regarding FedEx, They can charge less than CPC, because it's a service to another country. Regarding Damages, I'm sorry to say this, but you need to make your packages more resistant, all carriers not just FedEx use conveyors to handle the packages, and that creates damages if they are not packaged very well. Styrofoam peanuts are cheap, if you buy them from the right place


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ospreylinks
Community Member
I know postal rates have for the most part gone up, but I must say this new Canada Post Small Package to US is really saving me money.

I recently started using the CP desktop shipping software (and yes it could be improved - see my other thread regarding crappy CP software), but with the advent of the Small Package US, I have saved money in some instances.

One of the items that we sell are golf hats. Prior to Jan 12th, we use to ship them expedited to US using the old paper manifests, etc.

Just looking at a recent CP invoice, I have been charged anywhere from $9.44 to $14.72 for these parcels.

Using the Canada Post software, entering the actual dimensions of the box I shipped four last night and each went for $3.35.... That is quite a savings.....

I am anxious to get the CP invoice for these to ensure that they are not audited after being put in the post and they come back and surcharge me. If they don't which I will fight if they do, this is a pleasant surprise.

Jeff
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