*major* Canada Post News (Dec 11/13)

Thank you BlackJag and lorddenning for clarifications.

So much simpler to send an email via a computer or text using a cell phone. The cost and inconvenience to mail a letter is getting out of hand. Never mind the new rules about mailing the letter with the right postage. We bought into their buy the "P" stamp it will be good for domestic postage forever. My how the ground rules change in their favour. Mail volume is down so let's raise the price to mail a letter and watch the profits go back up. This kind of thinking went out with the Betamax.

CP likely would have sold and went private years ago if it could have. However the pension structure would make it a losing venture for any potential buyer. Have a feeling taxpayers wil sooner or later absorb the pensions . Maybe warren Buffet will buy it , close if for 366 days to bust the union and likely re open at low cost wages. Would be like Heinz but on a larger scale.
As for the P stamps sales being suspended there must be a huge inventory . With a 22cent increase even a million stamps doesn't seem like enough to warrant not selling them for 4 months. Although it may cover a ceo bonus. Sounds a bit cynical but seems to be the way things are heading --- GO GO GLUESTICK!
EDIT-- When this news first broke I bookmarked some P rate no gum listings that generally sold for about 50% of face (1/2 of 63c)-- Almost all of the listings have surpassed 50% face of the new 85c rate and still lots of time. Obviously there is enough speculation to create a hoard/ buying frenzy be it PO fresh or uncancelled .
Unitrade may have to do a 3 page explanation of 2014 so future collectors know what happened.

Well said serious collector!

Canada Post's two tiered postal rates will confuse a lot of people.
Obviously there isn't a brain trust at CP. There was a time that all Amazon.ca parcels were being delivered via CP..now most of it is delivered by UPS...imagine the volume of business lost there.
They could also have partnered with ebay...providing a preferred rate for registered ebay sellers. Why try to run a business using a bit of
imagination..when the easy way is to just raise postal rates...hoping that the consumer will remain loyal.
I'm certain that the mailing of Xmas cards next year will be reduced
drastically.

Hahaha glad I wasn't the only one thinking this exact thing.

The first Canadian "P" stamps were issued Nov 16, 2006, with the following information. The stamps to be issued on Nov 16 will be non-denominated, meaning that they will be valid indefinitely for use within Canada. Regardless of rate increases, these definitive will be worth the Canadian domestic basic letter rate in effect, and can be used to mail a letter that weighs up to 30 grams to any address in Canada. Also info about combining the "P" stamp with other stamps for mailing anywhere in the world.

So like many other CP customers I have bought more "P" stamps over the past 7 years than I needed because I was protected in the future from price increases.

Now CP has frozen sells of the "P" stamp because it appears like there is an extremely large increase planned early next year for the current $.63 "P" stamp up to $.85 (34.9% increase)and even $1.00 (58.7% increase)for domestic mailing.

So what will happen when the new rate becomes official and a "P" stamp becomes 85c or if you just need one CP will penalize you and charge you $1.00. Are all the millions of the current "P" stamps going to be unfrozen for sale or destroyed at the tax payers expense. If put back on sale at 85c then all the "P" stamps in kitchen drawers just increased 34.9% in value. Way better return than the banks offer.

CP does reserve the right to terminate the "P" stamp program at any time.

The good news is that if Canada Post terminates the program you will be eligible for a refund at the then prevailing Canadian domestic letter rate for any stamp returned to CP within the specified time.

So with the planned rate increase I will be mailing a lot fewer letters so I will want to know where I return my ~400 "P" stamps for a cash refund.

Something is up because a number of definitive "P" stamps have been reissued with a value of 63c instead of a "P".

OMG it just dawned on me CP just wanted to increase sales to collectors with all the new rates. Sly move CP.

Sorry for the rant but this latest CP move on the chess board doesn't sit well with me. Stamp collecting should be relaxing and an enjoyable hobby and not so frustrating and becoming even more expensive to maintain a complete collection.

This means that Canada Post does not have to sell these stamps indefinitely.It DOES NOT mean that the pre-existing "P" stamps will be worth less than the current domestic rate. CP has a legal obligation to honour the terms of sale. I will not hesitate to bring a breach of contract action in Small Claims court should my P stamps not be recognized at the domestic letter rate when I mail my letters after March 30, 2014.

The Toronto Transit Commission does the same sort of thing prior to a rate increase. Tokens are not sold until the new rate comes into effect. The old tokens can still be used when the rate goes up.

Lorddenning we are on the same wavelength but remember CP is counting on you as a collector to purchase all the newly released fixed rate definitives in their all too numerous forms.

Just another reason affirming my decision not to collect anything from Canada after 2000... every time I start thinking about it I see the mess and quickly stuff the idea back in the rabbit hole.

I'm trying to figure out why people are reacting the way they are towards the temporary suspension of sales of Permanent(tm) stamps?

From what we understand of this situation:

* Canada Post has proposed a rate increase from 63c to 85c as of March 31, 2014. This is the largest nominal increase in recent memory.

* Canada Post will honour all mint Permanent(tm) stamps at the domestic first class rate (it says that on their website).

* as of December 11 Canada Post has put a temporary suspension of sales on Permanent(tm) stamps (it said that in an image posted earlier in this thread).

* Canada Post released denominated 63c stamps in the interim until such time as the rate change is confirmed and takes affect on March 31, 2014. They have also issued 63c commemoratives and Christmas stamps recently.

* you can continue to use your Permanent(tm) stamps now, at the rate of 63c, or wait until March 31, 2014 when they will be worth 85c (just like any other rate change since they were introduced when the rate was 'just' 51c).

* after March 31, 2014 if you wish to mail a single letter, do not have a stamp, visit a post office to buy a single stamp, it will cost you $1.

* after March 31, 2014 if you wish to mail a single letter, do not have a stamp, visit a post office to mail that letter, you can buy a booklet or a full roll of Permanent(tm) stamps at the rate of 85c. You will obviously only use one of those stamps at that time, saving the rest for future mailings.

* after March 31, 2014 if you wish to mail a single letter and you have stamps in your possession, you will pay 85c.

* the Permanent(tm) stamps that Canada Post has 'withdrawn' temporarily will be placed back on sale after March 31, 2014 at the new rate of 85c. How do we know this? Because Canada Post outlets have not returned their stock of Permanent(tm) stamps for destruction; they are holding them.

* if you missed getting Superman or any other recently issued commemorative issue you will most likely be able to purchase them (at the new rate) after March 31, 2014.

* how many collectors have bought just 'one stamp' recently. We are 'forced' to buy the entire booklet anyway; there will be no difference come March 31, 2014.

About the only thing we don't know for sure at this time is:

* after March 31, 2014 if you do make that single stamp purchase of $1, will there be a 'special' *new* stamp that is used so that Canada Post can track these kinds of sales?

Other than that I suspect that as of March 31, 2014 Canada Post will operate exactly as it is now. People will mail letters at the existing rate just as they have for over a hundred years, and just as they have after any other rate change.

What am I missing here?

If you had a commodity that was going to see a 30%+ increase in cost in a couple of months wouldn't you put a temporary delay in sales to the public until the new date came along? If Canada Post had allowed the continued sale of Permanent(tm) stamps for the next 3 months (or even 3 days!), there would have been a 'run' on Permanent(tm) stamps and they would have lost millions. I know I called around and found a post office that was still selling Permanent(tm) stamps and I ran out and 'stocked up'.

I expect that there will be less mail sent/delivered after March 31, 2014 but people/businesses will realize, and continue, to use the post office. (when gas prices take a sudden hike in price do people stop driving?)

Instead of taking the negative side of this, look at the positives:

* your collection of Permanent(tm) stamps has just increased by 30+%

* there are eight (8) new 63c denominated defintives to collect; the more definitives that are issued, the better! Go Canada Post! As a *philatelist* definitives is where all the fun is.

* try to find earliest usage covers of the new 63c stamps; what a hunt that will be.

* this is the biggest excitement to hit Canada stamps all year. Stand up and cheer!


----
All of the above discussion about '85c' assumes that the proposed rate hike takes affect as Canada Post hopes it will.

I am not, nor have I ever been, an employee of Canada Post; so no bias there, nor do I have any insider information about this. I didn't even hear a rumour to this rate change.

studystamps




I have been advised that if you don't have something nice to say then keep your mouth shut. I am keeping my mouth shut.

If you remember, the post office suddenly raised the price of stamps in late 1981, from 17¢ to 30¢, domestic rate. That was a 76% hike. They produced an "A" stamp (#907) to bridge the gap. What I recall was that, for those of us living close to the US border, it was less expensive to mail letters from there to Canada. Then, shortly after, the US raised their "Canadian" rate to 30¢ as well and the cross-border shopping stopped!

PS I kinda like studystamps' more positive attitude.

With this sudden untimely announcement by Canada Post, it is only natural that many people take negative attitudes. Some of the rumours of implementation come from people talking with postal clerks.

It is a lot worse losing home delivery than capping a permanent stamp at 63c.

Can the non-denominated 907 "A" stamps be used at the current domestic rate or are they assigned a $0.30 value?