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Canada Post Action Plan – Postage Increase Summary

There is some good news for marketers and fundraisers in among this news of postage increases by Canada Post.

Canada Post released it’s Action Plan at 3 PM today and I know that you depend upon the mail as an important part of your business activities so I’ve compiled this short summary for you.  I’ve also attached the full Action Plan document for bedtime reading.
In short, Canada Post is adapting to the dropping Lettermail (First Class) volumes and is trying to adjust to the change in mail use.  Personal letters, bills and statement volumes have dropped considerably but advertising mail, that is to say what we call Direct Mail, has been less affected.
DM still performs well and for this reason it is still a highly valued tool for building and retaining strong relationships with clients, donors and supporters. Because DM is measurable and effective, it is still widely and reliably used as part of a multi-channel communication strategy. Canada Post is encouraging this segment of their business by NOT affecting the rates significantly.  This is good news for most of us.
Canada Post delivers the largest volume of parcels in Canada and they are improving their position in this area.  They are the only way to reliably deliver mail to individuals across the country and the new home boxes will have special parcel accommodations.
The rate change short story is:
 – Lettermail rates will go up in March from $0.63 to $0.85 for regular stamps and non-machineable mail.  You’ll get a break if your mail is dropped in large runs and can be machine sorted.  In this case you’ll see increase from $0.63 to $0.70.
The good news is that Addressed Admail rates will go up by only a penny or two, the kind of increase we normally expect this time of year.
Unaddressed Admail – flyer and coupons will see very minor changes, especially for those mailing large volumes under a negotiated contract rate.  More good news.
These rates are only proposed rates.  They must pass some regulatory steps yet but as a rule you can expect this to be the outcome.
Here are some links to the Canada Post information you are dying to read:
If you’d like to discuss these new changes please don’t hesitate to call me at 289-802-0584
Steve Falk
Prime Data

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