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Small businesses will see their mailing costs rise today, says the Canadian Federation of Independent Business.

That’s because delivery price hikes that were first announced in December will affect the 98% of small firms that send Lettermail every month. Though Canada Post announced a number of measures to offset those costs (such as temporary discounts on stamps and new bulk mail pricing), owners say they’ll still feel the impact of hikes, says CFIB.

Read: Canada Post scraps door-to-door delivery

Currently, many small firms continue to use the mail as an important part of everyday operations. In a recent survey of nearly 8,000 small businesses, 40% indicated they send at least 50 pieces of Lettermail per month.

As well, 46% of businesses continue to rely on payments from their customers by cheque.

“From connecting with customers to invoicing or paying suppliers, the need isn’t going away any time soon,” says Dan Kelly, president of CFIB. “The rate hikes will hasten the decline in Canada Post usage for small business.”

He adds, “Rather than focus on raising prices for its customers, Canada Post should be allowed to reduce its costs more aggressively to ensure its relevance for the future.”

Originally published on Advisor.ca

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