Article - Finding Real Solutions For Canada Post's Future

From he National Post online,

Deepak Chopra Dear Diary: Commemorative plates or Geddy Lee-themed envelopes? Finding real solutions for Canada Post's future
By Tristin Hopper | December 20, 2013

http://news.nationalpost.com/2013/1...d-envelopes/




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Holy Smokes my friend, what a job to have. Great article. Now I appreciate more the stresses and strains felt throughout the Canada Post system.

The mail must go through.

Merry Christmas Deepak and the crew at Canada Post!

Postage services should cost less in high volume areas (ie. major cities) where economies of scale reduce cost, and more in low volume areas.

In almost every other case where freight is involved, I pay a rate based on destination. Maybe it's time to drop the flat rate.

JR1960

You are proposing a system that was reformed in 1851:

http://postalhistorycorner.blogspot...r-rates.html

A letter rate of 3d was introduced in 1851, regardless of the distance.

http://postalhistorycorner.blogspot...postage.html

I don't think we should be turning back the clock. Domestic letter delivery should be a government service. Citizens deserve it.

Mr Chopra says that the elderly will welcome the chance to go for a walk every day to collect their Mail. Stephen Harper's federal conservatives have spent the last several years allowing Canada Post to flutter in the wind and become a tattered old flag. The Crown Corporation needs answers and alternatives and this government isn't providing them. Like many other of Canada's assets, they'd prefer to squander them, with their myopic eyes on the bottom line.
Whew! That feels better.
This thread reminded me of a column I read in the Toronto Star newspaper the other day, which, I thought, made a lot of sense.
You be the judge.

http://www.thestar.com/news/canada/..._walkom.html

Haven't read the postal history blog yet but starting off it sounds like a good idea to reduce rates. But then we lose the country being altogether through a postal system and possibly a lot of little local posts or courier services.

Communication is important in a diverse country such as ours.


Thanks, Jamesw, for posting the link. I had.'t read about the idea of a postal vanking system. May be the trust level buklt up over the years by the banks and their profits (well, you protect your profits to keep going) will not support the Post Office's possible venture into that sector. Worth a try though I think. Some profit is better than none.

I have been volunteering on a for a charity that collects stamps. I would say about 90% of the people have no idea that they can resell their stamps. The average resell has been around 10 cents a stamp. So that people could have had there mail for much cheaper. I was looking at ebay prices on some of the larger Higher FV used stamps. They were all selling over FV, and that's after the fee's. So if you really wanted to all you have to do is give all your friends and family a popular specific series for all the mailing in between each other and its free to ship. I mail items to NZ and then have all stamps mailed back. I actually have been making a profit on a few. So not only will Canada Post send 10 pounds around the world but they will pay me to do it? Here is something to think about. If I went on the Alaska cruise and mailed 10 sheets #1991 I would have easily made enough to pay for my cruise. Unitrade value of $80 per used stamp. Stamp cost $1.25. Or how about the ATM stamps. At .61 cents now valued at $100-200. Its amazing the lack of knowledge that people have of what they are throwing away. And complaining. People almost don't believe me that the charily has raised over $275,000. From what they called useless crap.

Joe

lorddenning - thx for the links

However I would argue in return that just because a variable rate was discontinued in 1851 does not invalidate it as a viable solution 160 years later.

I also agree that domestic letter delivery should be a government service that everyone deserves. Again, this does not invalidate the idea of a variable rate service, as many government services are variable rate based on usage or geographic location.

In 1851 there were few communication options available. We live in a very different world today, and when my tax dollars are being used to prop up a government service that is losing money hand over fist, I think there needs to be some very frank discussions about the business model.

Instead of telling Canadians why Canada Post isn't working this guy should be telling them what he will do to make it work, maintain doorstep deliveries, maintain post offices which are an important focal centre for communities, and reassure those who cannot walk, drive or get a bus to their post office that their mail will be delivered to them. And if he can't do that then he should get out and let someone with a positive approach have a go at it. He just isn't funny. I dread this happening to Royal Mail in the UK now that our Government have sold it (not a lot of family silver left now), for much as I knock Royal Mail for their generally poor modern stamp issues their postal service is pretty dam good.

Terry

JR1960




Canada Post has NOT been losing money hand over fist. It has been a profitable endeavour since 1982. It is only now that losses are being experienced. For several years Canada Post was paying DIVIDENDS to the federal government. Just go through the annual reports. Letter mail volume has declined but it will probably plateau. I do not foresee a continuing precipitous decline. The worst is about over. CPC and the federal government are doing a great job singing the blues though. When a political party wants to cut something they don't like,they use the term "Taxpayer". When they want to fund something they want, they call us "Citizens." Billions upon billions of dollars will be spent building battle ships in the Maritimes-something that hasn't been done since the end of WWII. Canada Post letter mail losses are peanuts compared to that, but of course we hear this refrain from the government "Taxpayers should not be burdened by subsidizing letter mail, but Canadian citizens need a strong navy."

CPC has been a progressive organization which is second to none in its modernization and efficiency. Canada Post has used variable rates for several services such as parcel post since the 19th century. It is not an unknown or illogical practice. This is an area where CPC can and should be making money. I am fiercely opposed to the proposed changes in letter delivery.

I find it quite amusing that Canada Post bemoan the cost of a domestic or international letter and that it's too low to be sustainable. Hey maybe some of you even agree, which is fine. But no one seems to mention that Canada Post is the MOST EXPENSIVE national post company IN THE WORLD for international shipping BY DOUBLE! I used to ship hundreds of boxes per year all over the world due to me collectibles business, and get this... IT's CHEAPER for me to ship a box to the US to a buddy then have him ship it to the UK via USPS than it is for me to ship it direct!

Don't believe me? Test it for yourself... take a box that measures 12" x 10" x 18" and weighs 5 lbs as an example. Now, let's pretend we want to ship it to the UK.. go online and find a random UK address, it's very easy. Now, the beauty of this is that every national postal company allows you to get shipping costs free online. So now take your box info and UK address and get a shipping quote from Canada Post to the UK for their Xpresspost service. This is important because on every test, you want to find a 1 week air service with tracking and insurance.

So I go here: http://www.canadapost.ca/cpotools/a...ecution=e2s1

Put in my settings and I get $159.29 for Xpresspost. This is ABSURD! How does this make sense to anyone?! $160 to ship a shoebox?? The only alternative is CP International Parcel Surface for $86.88 and it takes 4 TO 6 WEEKS! LOL!

OK, now, take your $159.29 and go to USPS, Go to any European post office, go to Australia, China, Russia, Mexico, Brazil ETC ETC... they all have English versions of their sites. Try each one for the same box to the same country with the same relative delivery time and options and you will see a trend. Canada Post is at least DOUBLE everyone else.

*EDIT - For s and giggles, I did this on USPS... $62.17 Priority Mail Express International service - same as Xpresspost. Almost 3 times more expensive to ship with CP than USPS for the same destination.

So what happens? Shipping companies like me start to drop-ship from other countries or have a warehouse in the US instead of Canada.

I have zero pity for Canada Post... don't talk to me about financial hardships when you're double or triple the international costs of every other country in the world and charge me $10 for a tiny shipping box at the post office. No company that needs to ship boxes of any kind can take CP seriously, so that business goes elsewhere.

Raise the cost of a stamp to $1.. go to a $1.10 for all I care, fix your ridiculous parcel rates.

Dan

PS. And don't even get me started on how they try to weasel their way out of insurance claims... Gets my blood pressure going every time.

Except that.....
Canada is the 2nd largest country with its population spread very thin.
Full and equal postal service for everyone is very expensive.
We have to pay for that.

Sak that is a point worth considering, but how does it relate to Faken's point that CP's international rates are not competitive? Unless perhaps it is using those rates to subsidize the very expensive letter post cross country.

Back to Canada Post Losing Money Hand Over Fist

Here is the financial picture for the past three years:



Prior to 2011, there were 16 continuous years of profit!

These are this year's figures so far:



That adds up to $233 million so far this year. Sounds like a lot doesn't it. But put this figure in perspective. In 2011, the Department of National Defence spent $239 million dollars on its cadet programme. (The Province, Vancouver, December 27, 2013, p. A24).

As I suggested in an earlier post, the current drop in letter mail will level off. The sky is not falling Canada Post.

Canada Post is playing us for dummies. This is blatant attempt on the part of the federal government to rid itself of postal workers and their pensions ( to which workers also contribute).

If you want to see bleeding, look at the US Postal Service figures- a 15 Billion dollar loss in 2012!

Nicely put, lorddenning.

Terry

Someone working for them told me that they started losing money when they went into debt after buying a lot of new equipment.

That's what I mean Sak, I have no issues with the domestic rates, it's once you go international that it's a circus.

Lorddenning - In addition to what you said about the feds: and likely pointing at the unions as the fault (which is partially true imho)

And yes, USPS is a financial disaster... but that's no shocker seeing as it's a US Gov agency. Neither is the nonsense from CP in the last few years seeing as it'sa crown corp. Take it all private, watch the fun ;)

Dan