Business

A single stamp will cost $1 after March 31

As announced in December, Canada Post is introducing a new tiered pricing structure for domestic and international letters.

On March 31, the price of Permanent (or “P”) stamps bought in booklets, coils and panes will be 85 cents per stamp, up from 63 cents today.

“P” stamps are valid on standard letters 0-30 g mailed within Canada. A 22 cent stamp will be available as make-up postage for 0-30 g letters for those customers who wish to use previously purchased stamps.

Permanent stamps, identified with the letter P in place of a value, will continue to be accepted even if they were purchased at a lower price prior to the adjustment. The typical Canadian household buys fewer than two stamps per month which means an estimated additional household cost of less than $5 per year.

Customers who wish to purchase a single stamp will pay $1. This represents about two per cent of all stamp purchases.

For commercial customers, the new pricing structure will be adjusted as follows:

Businesses that use postage meters or indicia will pay a new discounted commercial rate of 75 cents (per domestic letter).

Incentive Lettermail customers who meet volume and preparation requirements will benefit from significantly lower prices, at 70 cents for machineable lettermail and $0.69 for presorted.

The one-time strategic adjustment to stamp pricing was a difficult decision, but it was also a case of necessity, said Canada Post. Lettermail volumes have fallen steadily since 2007, and that trend continues as more and more Canadians turn to digital and mobile alternatives.

With a mandate to serve all 15.5 million addresses in Canada — a number that rises on average by 170,000 addresses a year, Canada Post must remain financially self-sufficient.

In December 2013, Canada Post announced a five-point action plan to transform its business and preserve postal services for all Canadians, and the largest financial benefit of that plan will come from the initiatives that reduce operational costs. However, these will take longer to fully implement. This price adjustment offers an immediate and much-needed financial contribution.

In 2015 and beyond, annual pricing adjustments will return to levels that consumers and the mailing industry have seen in the past, reflecting inflation and operational costs.

The operations of the Canada Post Group of Companies are funded by the revenue generated by the sale of its products and services, not taxpayer dollars.

Canada Post has a mandate from the Government of Canada to remain financially self-sufficient postal service.

Details can be found at canadapost.ca/notice.

 

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