Apr. 3, 2014, Toronto — Small businesses have seen their mailing costs rise this week, despite
measures announced by Canada Post two weeks ago to soften the impact of
rate hikes.
According to the Canadian Federation of Independent Business (CFIB), the price hikes will affect the 98 per cent of small firms that send lettermail every month.
“While we acknowledge that Canada Post has taken measures to reduce the pressure on business owners who rely on lettermail, these changes don’t outweigh the added costs,” said Dan Kelly, CFIB’s president. Two weeks ago, Canada Post announced a number of measures to offset the higher costs, including temporary discounts on stamps and making bulk mail pricing more accessible to small businesses.
It may surprise Canadians to know that many small firms continue to use the mail as an important part of everyday operations. In a recent survey of nearly 8,000 small businesses, 40 per cent indicated they send at least 50 pieces of lettermail per month. Equally important, 46 per cent of businesses continue to rely on payments from their customers by cheque.
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| Courtesy of the Canadian Federation of Independent Business. |
“From connecting with customers to invoicing or paying suppliers, the need isn’t going away any time soon,” said Kelly. “In the end, CFIB believes the rate hikes will hasten, rather than slow, the decline in Canada Post usage for small business. Rather than focus on raising prices for its customers, Canada Post should be allowed to reduce its costs more aggressively to ensure its relevance for the future.”
Since the rate changes were announced last December, CFIB has appeared before the House of Commons parliamentary committee reviewing the changes. A report was also submitted to federal Transport Minister Lisa Raitt, including the results of our member survey on the rate changes and the overall importance of Canada Post to small businesses.
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