So today was the first day of rotating Postal Union strikes in Canada. I’m not going to discuss how much the Union wants, is it fair etc. What I will do to stay true to this Blog is compare what each “customer” receives for an apples to apples comparison in terms of value for dollars spent.
The cost of a Canadian stamp is $0.67 (including 8 cents HST) the cost of a U.S. stamp is $0.44 (no tax). So from the get go we are looking at a $0.23 difference. I pay virtually all of my bills on line and other than Christmas and Birthday cards we rarely have to send a letter anyways this rate difference has little affect on me but may do so for others. So much for letters.
Canada Post states that approximately 24% of its revenues comes from parcels and, as a business owner this is the service I use most often. The U.S. Post offers “Flat Rate” Shipping anywhere in the 48 States. Here’s the kicker – they even provide the boxes for this service free of charge and will deliver them to your place of business for free. A business can order up to 500 boxes at a time!
Canada Post also offers boxes for their parcel services, they range from $3.79 to $5.99 per box and you have to pick them up at the Post Office.
So for comparison we are going to ship a 12″ x 12″ x 5.5″ – 5 lb package from Toronto to Vancouver and from Phoenix to New York.
Starting with my Canada Post $5.18 box we select the 2 Business Day XpressPost Base Rate of $27.63 (based on Postal Code), we then add fuel surcharge of $4.01 and HST of $3.80 for a total cost of $40.62. The U.S. Post “Flat Rate” Priority 2 Day Service is $14.95 for any weight. That was quick! Net difference is $25.67.
Add this to the cost of goods and once again it’s easy to see why goods cost more North of the 49th.
Just to add insult to injury I can ship the same box from Phoenix to Toronto for $35.50 or from Toronto to Phoenix for $114.61 – no this is not a typo!