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

[nan*55]

Wonderful 😞

As far as door to door delivery. Makes sense.

[moltencore]

I hate how media always says 'stamp' price increase and NOT postal rate increase.

The price of postage for Canada Post has already almost doubled since I started doing mailorder in late 1997. I can only imagine what is to come.

[pierrelebel]

"'stamp' prices are going up substantially."

Yes, in mid-January 2014, the cost of a stamp for a first class letter within Canada will go up from $0.63 to $0.65 (plus tax).

The article refers to speculation about the long term plans for Canada Post.  If they were to follow the British model (where the former head of Canada Post runs Royal Mail), postage for first class letter would rise to $1.00 or more (it went up 50%+ soon after Ms Greene arrived http://www.telegraph.co.uk/news/uknews/royal-mail/9075169/Royal-Mail-boss-Moya-Greene-to-be-quizzed-... ). 

However, this is Canada and I expect Canada Post would rather cut costs (subject to union approval) and the service than raise fees "substantially".

[moltencore]

85 cents NOT 65.

"The mail carrier also plans to bump the price of a first class stamp to 85 cents, up from 63 cents today. Buying an individual first class stamp will cost $1 as of March."

So if THAT is the percentage increase in postage... my gosh mailorder from and within Canada is pretty much doomed.

[moltencore]

Here's the Globe and Mail's article on it. http://www.theglobeandmail.com/news/national/canada-post-delivery/article15868531/

[pierrelebel]

One more time:

in mid-January 2014, the cost of a stamp for a first class letter within Canada will go up from $0.63 to $0.65 (plus tax).

[mr.elmwood]

The usual very poor "investigative journalism". "Revenue dropped $20 million in the first three quarters of 2013".

Ignoring that revenues have been dropping for years, on mail. I could easily do without daily home delivery. Once a week, at the most, is all I ever need. The rest of the time Brian is dropping off flyers.

Yeah, I can't live without my glossy A&W coupons.

How often do you get parcels delivered? That is how often you "need" home delivery.

Other enterprises like BlockBuster movie rentals refused to look to the future and got blind sided. So, CP is planning for the future and people do not like that? That makes no sense.

CP is selling off all of its' downtown expensive over sized buildings and building transfer centres at airports. Reducing costs and increasing efficiency.

Eliminate the home delivery of glossy A&W flyers and they could reduce costs in my town very dramatically. A Super mailbox here and there is all we really need.

Coming to a PO near you.

[pierrelebel]

You forgot "pending approval of the government"

Do you seriously expect the government to raise stamps that much a year before a general election?

[moltencore]

---

@pierrelebel wrote:

One more time:

in mid-January 2014, the cost of a stamp for a first class letter within Canada will go up from $0.63 to $0.65 (plus tax).

---

If that is the case... then why are media sources saying this then?

"The price of a stamps bought in rolls will go to 85 cents apiece, from the current 63 cents, pending approval of the government, the company said. Individual stamps will go to $1."

[rose-dee]

---

@moltencore wrote:

85 cents NOT 65.

"The mail carrier also plans to bump the price of a first class stamp to 85 cents, up from 63 cents today. Buying an individual first class stamp will cost $1 as of March."

So if THAT is the percentage increase in postage... my gosh mailorder from and within Canada is pretty much doomed.

---

I'm not looking forward to learning what changes are in store for parcel services...

[pierrelebel]

Here is the text of the actual press release by Canada Post :

https://www.canadapost.ca/cpo/mc/aboutus/news/pr/2013/2013_action_plan.jsf

[pierrelebel]

Correction to my earlier post.

Near the bottom of their press release, Canada Post stated:

"To assist in minimizing the effect of successive Lettermail rate increases, the basic domestic letter rate will be offered at $0.63 until March 31, rather than the regulated rate increase to $0.65 in January 2014 as per the five-year pricing plan that took effect in 2010."

[moltencore]

They seem to be putting forward two different messages in there. hmm.

1st:

"2. A new approach to pricing Lettermail to take effect March 31, 2014

Canada Post will introduce a new tiered pricing structure for Lettermail mailed within Canada, which will better reflect the cost of serving various customer segments. Under these changes, the majority of Canadians, because they buy stamps in booklets or coils, will pay $0.85 per stamp, with discounts for customers that use the mail most. The minority of consumers who purchase stamps one at a time, which represents an estimated 2 per cent of stamp purchases, will pay $1 per stamp. The average Canadian household purchases fewer than 2 stamps per month. These stamp price changes will take effect March 31, 2014.1"

and then....

"1. Pending regulatory approval, these proposed changes will be implemented March 31, 2014. The changes will affect letters from 0 to 30 g mailed within Canada: Those who purchase stamps in booklets or coils will pay $0.85 per stamp, up from $0.63 today. Businesses that use postage meters will pay a new discounted postal commercial rate of $0.75 (per letter 0-30 g). Mailers who prepare mail to reduce processing costs (known as Incentive Lettermail) will continue to benefit from prices that are lower than the proposed meter rate of $0.75 for 0-30 g. Single stamps will cost $1 each, up from $0.63. Canada Post estimates that only 2 per cent of all stamps are purchased as singles. The pricing for U.S., international and oversized Lettermail and mail weighing more than 30 g will also increase, and will typically fall in line with the new established pricing levels. However, unlike Lettermail less than 30 g within Canada, the pricing for these products will not include a uniquely differentiated booklet or coil price. Prices for parcels and for addressed and unaddressed advertising mail are not affected by the Lettermail increase. To assist in minimizing the effect of successive Lettermail rate increases, the basic domestic letter rate will be offered at $0.63 until March 31, rather than the regulated rate increase to $0.65 in January 2014 as per the five-year pricing plan that took effect in 2010."

I don't get it. Parcel rates are going up? They aren't going up? They are going up but less than lettermail? None to clear to me.

[petitecroissant550]

*from 63¢ to 85 ¢ on MARCH 31st 2014

http://www.canadapost.ca/cpo/mc/aboutus/news/pr/2013/2013_action_plan.jsf

Section 2 line 3.

As for the rest of their rates :

http://www.canadapost.ca/cpo/mc/assets/pdf/business/parcels_changes_2014_en.pdf

[rose-dee]

---

@petitecroissant550 wrote:

As for the rest of their rates :

http://www.canadapost.ca/cpo/mc/assets/pdf/business/parcels_changes_2014_en.pdf

---

Actually, we all probably expect parcel rates to go up every year, so ca. 3% is not a shocker, but here are the portions of that update that caught my attention, and that I think could increase Canadian eBay sellers' costs significantly (exactly what areas exactly are the high service cost areas?): 

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).

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%).

Add all these little nickels and dimes together in one unfortunate parcel and, as they say, the devil's in the details...

[moltencore]

Thanks for the link on CPC. I can breathe a bit easier (at the moment).

I sincerely hope 'small packets' are included in the 'parcel' rate increase of just over 3%.I think I can live with that.

Canada Post says... "Domestic Prices for Domestic Parcel Services will increase by an overall average of 3.2% for most
customers. Weights greater than 3 kg will have lower price increases, making Canada Post’s Domestic
Parcel Services even more competitive. USA/International Prices for USA/International Parcel Services
will increase by an overall average of 3.1% for most customers."

[tobyshitzu]

I suspect this is very very bad for oversize letter users like me.  Probably very good fro amazon's FBA

[velvetfinch]

Pierre, unfortunately you are mistaken. The price of a stamp (pending gov't approval)  will be going to $0.85 as of March.

Here is the quote from the press release you refer to:

"To assist in minimizing the effect of successive Lettermail rate increases, the basic domestic letter rate will be offered at $0.63 until March 31, rather than the regulated rate increase to $0.65 in January 2014 as per the five-year pricing plan that took effect in 2010."

In other words, Canada Post will leave the price of stamps as is (at $0.63) until March 31st when it will jump up all in one go to $0.85.  As they state, they wish to minimize the effect of successive increases.  Originally the 5 year pricing plan launched in 2010 had the price in March 2014 going to $0.65.  They have eliminated the approved price increase in favor of having one big increase effective in March.

[pierrelebel]

Did you read my earlier correction (after I finished reading the actual Canada Post press release)?

Postage for first class lettermail appears to be going up to $0.75 for most letters (under 30g) when postage is paid through postage meter, $0.85 if paid with a postage stamp purchased in booklets or $1.00 if purchased individually, all subject to government approval.