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Canada Post Pricing & Other Changes for 2018: What You Need to Know

First announced back in November 2017, Canada Post’s new pricing schedules for 2018 came into effect on January 15th. There were also some welcome changes to specifications for a couple of the key CPC products, especially Neighbourhood Mail™.

Here is a summary of the changes we think most of our clients will want to know about. These are just highlights. For the full story and details of all changes, visit Canada Post’s changes overview.

Personalized Mail

For a standard PM mailing (machineable, up to 50g weight, standard dimensions and thickness), you will now be paying 1¢ more, an increase from 47¢ to 48¢ ($0.48).

The unit rate for Oversize Personalized Mail has increased by 2¢, from 70¢ to 72¢ ($0.72). The related Oversize cost per extra gram has not increased and is still $.0034 for each gram over 50g.

The minimum volume requirement per deposit (at Canada Post) for Machineable Mail has been reduced from 500 items to 400 items. This will facilitate the use of smaller and more targeted mailings. With the lower volume requirement, Phantom Pricing* becomes a bit more manageable for those who have fewer pieces than the required volume.

(* Phantom pricing means that, even when depositing fewer than the minimum volume, you still pay the total postage for the minimum volume. For example, you drop 270 pieces, but you still have to pay for 400 pieces. In effect, it increases your postage unit rate. DataCore will always advise you when this is the case and propose alternatives if there are any available.)

For those who are considering mailing something thick, which Canada Post calls Dimensional Personalized Mail Dimensional items, they have increased the maximum thickness from 55 mm to 60 mm.

Neighbourhood Mail

Prices for Neighbourhood Mail have been adjusted as follows:

Standard | Up to 50g                                  from 16.0¢ to 16.2¢

Standard | Over 50g, Up to 100g              from 18.1¢ to 18.3¢

Oversize | Up to 50g                                   from 17.3¢ to 17.5¢

Oversize | Over 50g, Up to 100g               from 19.7¢ to 19.9¢

Canada Post is making changes to make NM a bit more flexible, changes that are likely intended to intrude on the market share that flyer distribution companies have enjoyed.

The maximum dimensions for Oversize items have been increased from 12” x 9” to 12” 11. For both Standard and Oversize items, the maximum weight per piece has been lifted from 230g to 500g and the maximum thickness has gone from .75” to 1.0”.

Canada Post is also looking to improved delivery cycles for Neighbourhood Mail, from 5 days to 3 days for Oversize items up to 200g and for Standard items over 115g.

Incentive Lettermail™

Incentive Lettermail prices have increased as follows:

Machineable Standard | Up to 30g                         from 76¢ to 78¢

Machineable Standard | 30g – 50g                         from $1.00 to $1.02

Oversize| Up to 100g                                                 from $1.61 to $1.64

Canada Post has removed the requirement for a mailer to sign an Agreement in order to access Incentive Mail pricing.

Postal Code Targeting™

Canada Post’s new Postal Code Targeting offering is growing in adoption, offering mailers a great way to make use of the power of the postal code for smart targeting.

The rate for PCT has increased slightly from 30¢ to 30.6¢. On the plus side, Canada Post has removed the requirement for an Agreement to be signed by the mailer in order to access this service.

Special Smartmail™ Marketing Offers for 2018

Canada Post has also introduced a series of special pricing offers to encourage marketers to discover, or in some cases re-discover, how Personalized Mail, Neighbourhood mail and Postal Code Targeting can be integrated into their marketing mixes.

As a Smartmail Marketing Expert partner, DataCore can introduce you to these offers and help you make the most of them.