WARNING!!!! CANADA POST IS AT IT AGAIN WITH PRICE GOUGING! A MUST READ!

[itsagyp]

Well, Canada Post is starting up the ridiculous rules that they briefly implimented last year but cancelled due to consumer pressure. The lady who ships out my packages for me at the local Shoppers Drug Mart has given me a copy of a notice she received yesterday. Effective July 24th 2006 we can no longer ship any goods via lettermail rates. They have a new service called USA LIGHT PACKET. It is starting at an "Introductory" rate that will increase in January of 2007 most likely to current small packet air prices. Below is a table of the new prices since Canada Post doesn't even have the decency to list it on their site under their "News" column. Oh, they have a heading in the news talking about a ONE CENT increase to domestic mail service http://www.canadapost.ca/personal/corporate/about/newsroom/pr/default-e.asp?prid=1165
but they won't list their 42% INTRODUCTORY price increase that will be a %100 price increase in January of 2007!!!!
USA
0g-100g Letter Post $1.78 LIGHT PACKET $2.55 Small Packet Air $5.95
100g-250g Letter Post $2.99 LIGHT PACKET $4.25 Small Packet Air $5.95
250g-500g Letter Post $5.98 LIGHT PACKET $5.95 Small Packet Air $7.90

The Letter Post is what we've been using and is somewhat in line, if not a bit higher than the USPS equivalent and the LIGHT PACKET "introductory" rate above is substantially higher than the Letter Post that we all use for our small items and it will raise to Small Packet Air pricing come January.

They're trying to wean us onto the higher price and hoping we won't put up a fuss. This HAS to stop. The USPS does nothing of the sort and people can ship for cheaper than our current Letter Post prices let alone the new pricing. Canada Post is a government subsidized orgainzation and they should not be able to gouge like this.

There is ABSOLUTELY NO logical reason for them to charge more for an item that is not made of paper but weighs EXACTLY the SAME and costs them EXACTLY the SAME amount in fuel and handling as does regular paper lettermail.

I know that a lot of us complained last time but I don't think many of us did anything about it (although I sent a letter to John McCallum). I need suggestions as to how we could make the biggest fuss possible as I'm not going to take this sitting down. I ship out about 700 packages a month and their "Introductory" rate is going to cost me about $1000 per month come July 24th and about 2000-3000 per month more come January.

Suggestions, comments, and questions please!! Where is our Canada Post REP?? Help shed some light on this ridiculous, unwarranted and (should be) illegal price gouging.

Aaron McNeil
It's a GYP
Ontario, CANADA
905 830 0062

[tobyshitzu]

"They're trying to wean us onto the higher price and hoping we won't put up a fuss."

Excatly, its almost exactly the same thing as last year that was cancelled because "they listened to their customer" brought in during summer with short notice and phasing in the increase - all they learned form last year was how to limit the complaints. It seems to have worked, response on the thread on canada town square quite tepid compared to last years outrage.

I did write a number of letter last time to CP, minister, MPs. Someone contacted goldhawk and got coverage there, don't know what the odds are of getting him to cover it again.

I doubt "a big fuss " is possible, its was just way, way too frusterating last time around trying to encourage other ebayers to at least make a complaint. People could make 50 posts complaining about it, then make one saying good job for writing but they can't be bothered. SOme posted letters they sent, demanding all sorts of unrealistic, unrelated changes...that just made us look nuts (a lot on the regular messageboards ARE nuts

In the USA ebay themself encouraged users to complain about government proposals requiring auctioneer licences, but I dont't see any poosibility of something like that with them in bed with CP collecting commissions off the paypal shipping.

[itsagyp]

Has this been touched on already? If so, do you have a link? I think something needs to be done again. It is not fair at all what they're doing.

Aaron

[tobyshitzu]

http://forums.ebay.ca/thread.jspa?threadID=500009222&tstart=40&mod=1151637479789

[funkywatch_com]

I don't want to rain on this parade, but this sounds like a good thing for me. Everything I ship is Small Packet Air between 200g and 500g so there would be savings of a few hundred dollars monthly for my situation...

eric

[tobyshitzu]

THese rates are 15% discounted form what the intention is...

[tobyshitzu]

And these do not replace small packet, item still has to be letterpsot size under 2cm thick, and don't include the $100 insurance.

[youreinthebook]

Corporations like Canada Post don't often listen to people. They listen to LAWYERS and THE MEDIA.

If you don't have a case to bring to court, then take it to the court of public opinion. Contact CBCs VENTURE and MARKETPLACE. Contact your local news station to see if they have a consumer watchdog reporter. Contact the newspapers - both city and nationwide. Don't get one person to call, get many people to call. Find out who is doing national syndicated radio broadcasts and call and e-mail them. This seems like the kind of story that these kinds of reporters like to take on.

Canada Post is running those fuzzy wuzzy commercials that encourage eBay sellers to use their service. Well, let the media know that eBay sellers are not impressed. I would love to see a report on TV showing an eBay seller with two envelopes of the same size and weight and explaining how CP charges more for one than for the other.

Good luck.

[youreinthebook]

Oh:

Canada Post hasn't been subsidized by the government for almost two decades now, so probably not good to spread that bit of misinformation around as it's likely to hurt credibility.

[gymmytherat]

Hi there everyone,
THis is my first post here, been reading for some time, and thanks for all the great free bees at canadapost.

Ok I started doing my canadapost shipping from paypal, today I noticed this surface small packet to choose from along with the regular expediated service. So being cheap I did a comparison, I was shipping a pair of cargo shorts, in a bubble envelope.

Now xpediated was $13.30 cad
surface small packet $9.90 Cad

I do not see a bar code, and it looks as if I have to bring it to the postoffice for delivery.
They give you a track # with it, but how the heck do they track it if they can't scan it in??

And one more thing, if the small packet surface has just introductory rates now, someone said you can add 15% to my total after a while.
Ok lets do that - $9.90 * 15% = 11.38
Still cheaper then the expediate service!
Unless I am doing something wrong,

let me know
cheers
gymmytherat

[zarzuella]

Hi gymmy,

Small Packet has always been available for packages under 1 kg to the US, 2 kg International. It is cheaper than expedited in those weight groups, and carries up to $100 insurance automatically (although this may be pretty worthless as CP applies differing and varied rules when you try to make a claim). Over those weights SP is not an available option. When checking the CP website for shipping costs, use the 'Parcel Shipping Calculator' - this gives you all available options and prices for the weight and size you input.
Small Packet has no tracking or delivery confirmation, which means you have no proof of delivery if the buyer should try to make a not-received Paypal chargeback - you'd lose. You can print off a shipping label through Paypal just as you do with expedited, and can be dropped in any mailbox - you don't need to take it to the PO.

Cheers Ann

[itsagyp]

Well, I am going on an email spree emailing everyone and anyone who has ears and who may make a difference. I've emailed the following people and organizations:

Globe and Mail jquinlan@globeandmail.com ARyan@globeandmail.com egreenspon@globeandmail.com sbeck@globeandmail.com
Toronto Star lettertoed@thestar.ca oped@thestar.ca business@thestar.ca
Toronto Sun linda.leatherdale@tor.sunpub.com
CTV News newsonline@ctv.ca
W Five W-FIVE@ctv.ca

Carefully craft your story and email the addresses above and anyone else you can think of. The squeaky wheel gets the grease!

I'm going to be sending many more over the next few weeks to my local MP all the way up to the Prime Minister as I did last year regarding the same issue. Do yourself a favor as well as a favor for the tens of thousands of small businesses that are going to be decimated by Canada Post's gouging and email these people as well, especially in the media and government. This needs to stop. Feel free to post what you've been able to do and any emails you think are useful.

Aaron

[salvage_kraft]

Canada Post does have some gall wtih their ads pusing Canada Post for eBay sellers...they have LOST me more busines that they have ever gained me....I can send some larger items CHEAPER via UPS....yes, that's right, United Parcel Service....with the pacakge being REALLY tracable, not the 'tracking' that Canada Post offers (which is a joke), and guaranteed to arrive in 5 - 7 days....and usually arrives earlier than that.
Canada Post = a big, and now even more expensive, gamble.
Everytime I see one of their eBay ads on TV, billboards, on their trucks or where ever, I start steaming.......Surely they could be sued for false advertising..... 🙂

[itsagyp]

So is anyone else going to try to do something or are you all just going to sit there and accept the changes? Frankly, I can't believe that nobody else would even TRY to bring this to the media's or government's attention.

If we don't chime up, we'll be stuck with their new rules because we didn't complain. I'm sure there are thousands of other businesses that are much bigger making their voices known but we have to do our part.

Come on guys n gals! Fight!

Aaron

[tobyshitzu]

Another thread on the go
http://forums.ebay.ca/thread.jspa?threadID=600008989&tstart=0&mod=1152028353594

"or are you all just going to sit there and accept the changes?"

Sadly most will

[magisterrex]

I appreciate the warnings, but where is this coming from? I asked my post office (which bends over backwards to keep my business) and they couldn't find a memorandum with this information on it. Is this some sort of spoof mail that you received?

[tobyshitzu]

NO, this is real. This has been in the works since they delayed the change last Sept (they never did change anything in the postal guide like they said they would then claiming ot hvae "listened to their customers"). Earlier in the year I got a written reply from the VP in charge of letterpost saying to expect this new product coming. Outlets have received notice of this with the new pricing, CP csrs don't appear to be familair with it yet(exact repeat of what happened spring 05 when they tried it the first time)

[fenian]

My local PO (small town in BC) confirmed they have received a formal memo that the change is coming as noted by the OP. The CP staff are still putting out that this is because of "Customs" (i.e. not the fault of CP), although last year I had documented proof from both USPS and US Customs + Border Protection that it was nothing to do with either of them, and that it was all CP's doing. The US folks have no concern whether a package is all paper or not, so long as it's not contraband or illegal content. I'll be digging out my file to my MP (Gary Lunn - Conservative, Saanich & the Islands) and resubmitting the data to his office. He was helpful last time. I'm hoping the media will get involved again...... Michael

[fenian]

I've had some email correspondence with the CTV Whistleblower folks:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Thanks for the reply, Patti-Ann...............

To answer your questions............

I would have no problem appearing on camera

The manner in which this would affect my business is multifold:

a) my postage cost per package will increase from $1.89 to (initially) $2.70, then to $ 3.11 in January 2007. These figures include 6% GST.

So, to start, an 81 cent increase - 43%, followed by a further 41 cent increase - 22% ----- for a total increase by January of $ 1.22 - 65%.

While I'm very small compared with thousands of other Canadian sellers, this will reduce my bottom line by a considerable sum.

b) Canada Post has not posted a notice regarding foreign "customs rules", but last year, I was told by numerous CP staff that........it was a US Customs issue. I refuted this by contacting both USPS and the US Customs and Border Protection Agency, who denied they require lettermail packets to contain paper items only .........they advised me it was an internal CP decision. Canada Post's current bulletin instruction to staff states that "previously, non-paper goods such as CDs, DVDs etc., have been incorrectly processed as letterpost...". Does this mean that Canada Post (and its previous incarnations) have been "incorrectly processing" the mail for over 150 years ? This bulletin does not make reference to domestic mail............the "light packet" regulation will apply to US and foreign shipments only (at least until Canada Post decides to whack the domestic mail system as well). By inference, one could conclude that this is a cross-border concern, raised by the US and governments abroad. It's not...........it is quite simply another means of raising revenue, thought up by CP alone.

c) Buyers in the US complain now about the cost of having their purchases shipped from Canada. How can I retain US buyers who may buy a coin-sized token for e.g. $3, and who must now be told that shipping it (all 35 grams of it, including packaging) will cost as much again for mailing ?

A 3 ounce packet can be airmailed from the US to Canada for $US 1.15 ($CAD 1.28). The US Postal Service couldn't care less whether the contents are paper or otherwise. The same 3 ounce packet mailed from Canada to the US will cost (as of January) $CAD 3.11 = almost 2 1/2 times as much.

Quite simply, US buyers of small-size items will no longer purchase from Canadian sellers, as they will blame individual Canadian sellers for "gouging" on shipping rates.

So..........we have less taxes paid, as net income drops due to increased costs, we have lower export figures meaning fewer US dollars entering the country, thus affecting the balance of trade, and (again) we have less taxes paid as net income drops due to lower sales.

Only Canada Post wins in this scenario.............and it is simply not right.

Any packet falling in the same weight and measurement classification when sent to the same destination country, should cost the same, irrespective of packet content. We're back to the "pound of feathers versus a pound of scrap iron" argument.........which I thought had been dealt with in grade school.

Thus, if it doesn't cost Canada Post any more to handle and process the packet, and if Canada Post does not incur additional fuel surchages, from where on the face of the planet comes the justification to charge more........based purely on what is being sent in the packet ?

This is where I'm hoping CTV can draw this to the attention of the Canadian populace, and help raise the matter with folks who are in positions which can turn this around.

Thanks again for your time and interest................. Michael

[fenian]

I've had an acknowledgement from CBC Marketplace, with a note that someone may be getting back to me for more information.

Any one else out there getting a response to info sent ?

>>>>>>>> Michael