Path to Sustainability

Path to sustainability

On January 26, First-Class stamp prices in the United States increased by 3 cents. The increase of 6.5 percent was designed to help USPS maintain an affordable delivery service for one flat rate across the entire country. With proposed changes to Canada Post’s pricing structure, residents of the neighbor to the north will soon see a much larger increase among other changes.

Beginning March 31, the Canada Post single stamp price will rise from 63 cents to $1.00, a 58 percent jump in cost. Customers choosing to purchase booklets or coils of stamps can reduce that price to 85 cents per stamp, a 34 percent increase above the current 63 cents per stamp.

The price increase is part of a 5-point plan designed to return Canada Post to financial sustainability by 2019. Other parts of the plan include:

–        Transitioning the remaining 1/3rd of the population that doesn’t receive mail through a community mailbox to a community mailbox within 5 years.

–        Installing more Canada Post outlets into non-affiliated stores across Canada.

–        Improving processing efficiencies.

–        Reduce its labor force through attrition.

Like other Post Offices in the world, Canada Post has realized a substantial shift in mail volume to digital alternatives. Letter volume for the organization dropped by 1 billion pieces from 2006 to 2012, with projected financial losses growing to $1 billion per year by 2020. Canada Post’s 5-point plan might not be well embraced by some customers, but it could be seen as the best alternative given a dire long-term financial outlook.

To read more about Canada Post’s 5-point plan, click here.


1 Comment


     /  March 31, 2014

    Another benefit of privatization, along with repeated labor strikes, the end of door-to-door delivery, etc.

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