So... 'stamp' prices are going up substantially. It's REALLY going to hurt Canadian sellers

[moltencore]

😞

http://www.cbc.ca/news/canada/ottawa/canada-post-to-phase-out-urban-home-mail-delivery-1.2459618

[velvetfinch]

okay, thanks for clarifying

[cjacki]

Just heard this on the CBC. It's 85 cents.

So much for free shipping.

[pjcdn2005]

Service-area adjustment
A service-area adjustment of $5.00 will be applied to parcels shipped to areas Canada Post
has identified as having a particularly high cost to serve (i.e.: Fort McMurray, Alberta).

That caught my eye as well. It will be difficult to use a flat rate for parcels within Canada considering we don't know if the buyer will be from one of those 'high cost' areas.

Domestic Liability Coverage (insurance)
The price will increase from $1.95 to $2.05 per $100 declared value (an increase of 5.1%).

USA/International Liability Coverage
The price will increase from $2.00 to $2.05 per $100 declared value (an increase of 2.5%).

I don't know what their claim rate was for small packet when they did have insurance included but unless it was quite high, I think that they could make more money by offering optional insurance at a reasonable cost for small and perhaps light packet. I think that if the cost was under $1 per $100 coverage, quite a few people would pay the extra amount.  However, I don't know if the cost of administering that would be reasonable.

[toff3]

The headline for CP's news release:

Canada Post unveils Five-point Action Plan

Dec. 11, 2013

Plan will return system to financial sustainability by 2019 and ensure continued role of enabling trade and commerce

That's rich. Anyone want more proof that Canada Post is operating a business model that does not work?

Tom

[toff3]

I don't know what their claim rate was for small packet when they did have insurance included but unless it was quite high

PJ,

I'm quite sure the claim rate for Small Packets was very low. Rate of loss or damage in the mails has always been negligible. Canada Post's removal of included insurance coverage was a simple cost-cutting exercise. They're forever looking to reduce costs wherever they can, even when it's peanuts.

Nevertheless, they keep losing money. As I keep harping on, Canada Post operates an unsustainable business model and has been doing so for years.

What's needed is a wholesale makeover, such as the dreaded p***********n.

Tom

[pjcdn2005]

Tom, I think that you're right and that the rate claim was quite low. When they announced that insurance would no longer be included with those services, it seems that a lot of sellers panicked about no longer having insurance. Those sellers would likely be willing to pay an optional insurance fee. However, now that I think about it, I wonder if CP would lose more TP business than they would make up for in optional insurance profits.

[recped]

---

@toff3 wrote:

The headline for CP's news release:

Canada Post unveils Five-point Action Plan

Dec. 11, 2013

Plan will return system to financial sustainability by 2019 and ensure continued role of enabling trade and commerce

That's rich. Anyone want more proof that Canada Post is operating a business model that does not work?

Tom

---

Sorry Tom but it's a SIX point plan.......

The Sixth point is the sending out of new Venture One cards (got mine today) that look just like the old ones, a sub-point of that is to send two cards instead of just one and as an extra bonus 3 key tag cards along with a glossy book containing....well containing nothing I really need to know or don't know already.

Don't know how much was wasted on this bit of stupidity given that it's sent to existing customers. Probably only chump change of a few Million Dollars.

Earlier on someone complained about bulk mail & flyers, well I'm pretty sure that without ad-mail home delivery would have gone away long ago. I can't speak for others but for me it's at least 90% of the mail I received, would be pretty silly to have carriers walking a route and only stopping at every tenth house with one or two actual letters.

The one thing that really has me wondering....where are they going to put these community mailboxes? There is some green space across the street from me that would work but there are plenty of streets here in Toronto where convenient locations may be a problem. I suspect somebody is going to wake up one day and find a notice from Canada Post that their front lawn has just gotten a bit smaller!

[thecryptoshop_canada]

And they are still not introducing any kind of "affordable" tracking for light packets or oversize lettermails! which is killing our business with all kind of delivery fraud!

I should move south of the border!

[anguscoinshop]

isn't stranger; 

mail volume is been decreasing ever year and they come up with the same mistake every year "let increase the rates some more"

our government logic is to let the plane spiral downward out of control

as long as they keep the P on the stamp, my boxes of P stamps are looking $$$$

will there be a stampede for P stamps?

[petitecroissant550]

---

@angus_coin_shop wrote:

isn't stranger; 

mail volume is been decreasing ever year and they come up with the same mistake every year "let increase the rates some more"

our government logic is to let the plane spiral downward out of control

as long as they keep the P on the stamp, my boxes of P stamps are looking $$$$

will there be a stampede for P stamps?

---

Since Permanent stamps only apply to lettermail up to 30g, I highly doubt that.

[ricarmic]

Only attempted stampedes.... you can't buy P stamps in the PO anymore, they pulled them from all POs across the country today for that very reason.... I guess they'll bring them back in March when they can be used again...

[vmm32vxd]

If individual stamps cost $1.00 and booklets can be purchased at $0.85, I wonder how much you will have to put on an envelope if you have old stamps that are not P type.

[petitecroissant550]

You would have to apply the lettermail rate at the time, which can be calculated by using Canada Post's 'Find a Rate' tool.

@ricarmic Staples, Shoppers Drug Mart etc. is still selling them for now...

[classicalcanada]

Will all the stamps be 15% if bought in roles, for example the US and International?

[zee-chan]

Service-area adjustment A service-area adjustment of $5.00 will be applied to parcels shipped to areas Canada Post has identified as having a particularly high cost to serve (i.e.: Fort McMurray, Alberta).

I certainly hope that Vancouver isn't one of those places...................... depending on what their definition of "high cost to serve" is .__.

[recped]

---

@zee-chan wrote:

Service-area adjustment A service-area adjustment of $5.00 will be applied to parcels shipped to areas Canada Post has identified as having a particularly high cost to serve (i.e.: Fort McMurray, Alberta).

I certainly hope that Vancouver isn't one of those places...................... depending on what their definition of "high cost to serve" is .__.

---

High cost to service will be the places where you already have a heart attack when you see the rates so mostly NT, NU, YK and the far northern communities of the provinces.

A few days ago I was looking up rates to ship 25kg (Regular Parcel) to Baker lake....OUCH!

From Toronto to Vancouver (3400km), about $50, to Baker Lake (2500km) about $175

I'd guess they will add the $5 to a greater range of locations so if you are selling hermit supplies you may encounter this more frequently.

[ricarmic]

Petite.....That is interesting, CP probably can't stop them from selling them....as far as I know the actual PO offices all had them pulled....the "rush" will be a bonus for the Staples, Shoppers etc!

[recped]

The franchises will sell out right away and probably won't be able to re-order. I think my outlet gets stamp orders in a couple of times a week (the margins for them on stamps are so small they don't carry any more inventory that absolutely necessary). CP probably won't supply any more P stamps until March or if they do they will severely limit the quantities.

[cumos55]

Calculated shipping should cover the cost to the "remote" areas.

Flat rate shipping also works if one ships hundreds of parcels each year.

I always have a buffer of $100 in shipping paid by buyers  that covers the extra cost of shipping to Nunavut  and to remote areas in British Columbia and Newfoundland.

If you sell enough each year... then those "remote area" extra costs   should be no problem.

Buyers have adjusted in the past.....  and with each adjustment in cost of postage.....  so will the sellers....  

Online sales may eventually become  a specialized market.....  

[reallynicestamps]

Eliminate the home delivery of glossy A&W flyers and they could reduce costs in my town very dramatically.

I believe that Canada Post makes a comfortable profit on admail. It's easy to handle. Once you know what postal codes the advertiser wants, you hand the carrier a batch and he drops one in every box on his route.
And those admail guys know their stuff. We get a lot of mail about funeral and retirement services and very little about toy stores.

A service-area adjustment of $5.00 will be applied to parcels shipped to areas Canada Post 
has identified as having a particularly high cost to serve (i.e.: Fort McMurray, Alberta).
That caught my eye as well. It will be difficult to use a flat rate for parcels within Canada considering we don't know if the buyer will be from one of those 'high cost' areas.
Calculated Shipping should be used on anything that is not going letter rate.

where are they going to put these community mailboxes? There is some green space across the street from me that would work but there are plenty of streets here in Toronto where convenient locations may be a problem. I suspect somebody is going to wake up one day and find a notice from Canada Post that their front lawn has just gotten a bit smaller!

Most homeowners are only vaguely aware that quite a chunk of the front lawn they are mowing actually belongs to the city.
FWIW, if you have a watermain access on your driveway, that's probably the border between your land and the city's land.
 
will there be a stampede for P stamps?
Only at postal outlets.  We've been hoarding them for years at the shop. They never go into our postage lots.