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Businesses bracing for Canada Post price hikes


December 12, 2013
By Canadian Garden Centre & Nursery

Dec. 13, 2013, Toronto — The massive price hikes Canada Post is planning to introduce next year are alarming small businesses, according to the Canadian Federation of Independent Business (CFIB).

Effective March 31, 2014, Canada Post will introduce a tiered pricing structure for lettermail mailed within Canada. For stamps purchased in a book or coil, the cost will rise to $0.85 per stamp. Stamps purchased one at a time will increase to $1 per stamp.

"Introducing massive letter mail price hikes for residential and business consumers is not the way to rescue a failing government entity," said Dan Kelly, CFIB president. "These hikes will have a significant impact on many small businesses that use the mail to connect with customers or invoice and pay suppliers."

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In an October 2013 survey of small business owners, CFIB found that 40 per cent of owners send at least 50 pieces of letter mail per month, and 98 per cent still use letter mail every month.

"Sixty-one per cent of small business owners said sending and receiving mail was very important to their business operations and a further 30 per cent said it was somewhat important," Kelly said. "Three-quarters of small firms said they oppose significant price hikes like the ones announced by Canada Post today."

With respect to ending door-to-door delivery, which Canada Post plans to phase out over the next five years, two-thirds of CFIB members supported a move to community mailboxes in a recent survey.


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