They’re at the POST

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!

About 2sidesof49

This Blog is for all Canadian Cross-Border Shoppers wanting to maximize their returns on their U.S. shopping trips. Visit 2sidesof49.com for tips and tricks and links to our partners websites, blogs and products. Also check out my book The Canadian Cross-Border Shopping Guide - guaranteed to save you money!
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4 Responses to They’re at the POST

  1. flynnroad says:

    I thought this might be because the Canadian Post doesn’t run huge annual deficits like the US Post does. But, that isn’t true. The Canadian Post might be in even worse shape than the US post given the relative size of the customer base. I found a story on the net that says Canada Posts’ 2009-2010 deficit was $40.5billion and the 2010-2011 is $28.6 billion. Meanwhile, the projected US Post deficit for the next 10 years is $238 billion and $7 billion in 2009.

  2. 2sidesof49 says:

    Target has announced it’s coming to Canada this fall, wouldn’t surprise me if Dick’s shows up as well. Did some shopping at Dick’s last week, my daughters boyfriend bought some new golf shoes – $99.00. At Golf Town, the Canadian answer to the PGA Store they are $179.00.

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