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More Details about Canada Post's Pricing Changes for 2014

Aug 26, 2013

Come January 13, 2014, Canada Post will be implementing some pricing changes to their Direct Marketing and Transaction Mail services. Magazines Canada has already shared CPC's official announcement, but to help our members prepare for these developments, we have assembled this summary of the fee increase in different mail categories.

In the Conference Board of Canada's study The Future of Postal Service in Canada, it was suggested that Canada Post significantly increase rates by 5% or 10% each year. In Magazines Canada's commentary to CPC, the association noted that there is already a tipping point where costs to use the system have driven publications to other delivery enterprises—though less integrated ones. As rates increase, other suppliers have captured business, and may at some point design systems that are both cost effective and, more importantly, capable of reaching all Canadians. A 5% increase per year every year will accelerate this decline in volume, as the disproportionate hit to the bottom line will not be manageable for publishers.

In general, the largest increase of all of Canada Post services will be on oversized (O/S) and over 500 g up to the 1.36 kg categories. The overall rate increase range averages from 3% to 6%. More details below.

PUBLICATION MAIL

Machineable category

  • Short and Long (S/L) up to 50 g: 3¢ increase to 64¢
  • Oversized (O/S) up to 100 g, and over 100 g up to 500 g: 4¢ increase to 69¢.

Non-machineable category

  • Letter Carrier Presort (LCP) for Local Regional and National distribution up to 200 g, and over 200 g up to 500 g: 2¢ increase.
    Exception: Distribution Centre Facility (DCF) for Regional and National distribution: 4¢ increase with rates ranging from 46¢ to 85¢.
  • Local, Regional, and National LCP over 500 g up to 1.35 kg: 5¢ increase.
    Exception: Regional and National DCF: 7¢ increase with rates ranging from $1.51 to $1.90.

NDG Presort

  • National and Local Rural items up to 100 g and over 100 g up to 500 g: 3¢ increase to 66¢ and 35¢ respectively.
  • Regional items up to 100 g, and over 100 g up to 500 g: 4¢ increase to 48¢.
  • National and Local Rural items over 500 g and up to 1.36 kg: 7¢ increase to $2.02 and $1.35 respectively.
  • Regional items over 500 g and up to 1.36 kg: 8¢ increase to $1.76.

Bundles of Unaddressed Copies: 5¢ increase to $2.10 per bundle + $3.50 per kg.

Promotional and Novelty Items: 1¢ increase, ranging from 10¢ to 18¢ for singles and 13¢ to 24¢ for multiples.

Undeliverable Publication Mail (uPM): 5¢ increase across all size categories. New prices will range from $1.39 to $3.15. uPM Processing Fee will also rise by 2¢ to $1.17.

The New Customized Postal Indicia is now available for Publication Mail, if interested, please read more details on the Canada Post website.

Sexually explicit content will require opaque wrapping, and unsolicited items will require “Adult Material” or similar wording on the outside of the opaque wrapping.

ADDRESSED ADMAIL

Machineable Presort category: all prices will increase by 1¢, with rates for Short and Long up to 50 g ranging from 40¢ to 48¢.

Machineable Mail (MM): 1¢ increase, with Oversize (O/S) increasing by 2¢.

Non-machineable category: 1¢ increase to 3¢ for Short and Long up to 100 g.

Dimensional Addressed Admail: effective now, the maximum allowable thickness has increased by 10mm from 35 mm to 45 mm. More details are available through Canada Post.

UNADDRESSED ADMAIL

Pricing structures and mail preparation have been simplified for this category. A flat rate fee has been established, eliminating premium fees.

Simplified mail preparation means that no Distribution Plan or mailing sample is required, while bundle height has increased from 100mm (4 in.) to 152.4mm (6 in.). The “pinch test” is now simpler and there is no minimum weight requirement for brick-piled mail on pallets. See Canada Post guidelines for details.

BUSINESS REPLY MAIL

Business reply mailing rates will not change.

SUBSCRIPTION DRIVER PROGRAM

The Canada Post website links to Magazines Canada's Canadian Magazine Store, where all member titles are available in both print and digital formats.

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