Hello all, I know I have been a little slack in adding new posts to the Blog but my speaking engagements, website redo and new PowerPoint Presentations have occupied my time. This being said I’m past due for a good rant.
Readers will know my thoughts on Canada Post – Postes Canada but this weeks experiences mean that I have to revisit them once more. First off I met a very nice lady at one of my talks recently and she told me that the drop in the Canadian Dollar had made her particular Canadian made baby products much more competitive in the market and and far more attractive to U.S. and International buyers except for one thing! You guessed it, the cost of shipping via Canada Post to the U.S. Basically, as she explained, the vast majority of goods in the U.S. ordered online are shipped free. A 12x12x5 box cost her $28.93 to ship with Canada Post for a $49.95 worth of goods. So what does one do? Follow the example of so many and pack up the tent, move your manufacturing to China and ship from there.
So now for my story. I had to ship two books to Ottawa. I chose a standard “off-the-shelf” 11″ x 8″ padded envelope. While the two books fit in it nicely it was, as expected too thick to fit through the standard Canada Post issued thickness gauge however it did pass the obligatory postal employee tape measure test. The result $9.25. But Wait! We now must add a $0.32 Fuel Surcharge AND the $1.24 HST bringing my total up to $10.81 (for an envelope). As I refuse to pay an additional fee for tracking I took a picture of the package with proper postage affixed.
I thought I would do a bit of math. I’m figuring Canada Post would use a standard 10 ton truck to send my envelope to Ottawa by ground. Weighing in slightly less than Manny Pacquiao at .511kg. I’m figuring that Canada Post could put just shy of 20,000 of my envelopes on this truck. That means they generated $185,000.00 in postal revenue, charged $6,400.00 for maybe $200.00 in fuel and given their owner $24,800.00 in HST.
Now if you have been reading the press of late Canada Post Corp. president Deepak Chopra has defended the controversial decision to end home mail delivery. Now I don’t know who this is affecting because I have not had home delivery for over 20 years. I get my mail at a community box or Shoppers Drug Mart. Chopra has stated that the parcel business is a “winning horse,” and is making it clear that Canada Post’s fortunes are now inexorably tied to parcels.
Well if this is the cost of your service then you can blame no one but your selves. You are pricing yourself out of the business and unfortunately making a lot of small business owners rethink their online sales strategies.
When things are broken this bad I’m not sure they can ever be fixed.