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General Philatelic/Gen. Discussion : Canada Post to hike stamp prices to 90 cents next year

 

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d1stamper
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09 Jul 2015
08:04:26pm

Auctions - Approvals
Canada Post to hike stamp prices to 90 cents next year
Blaming a steep drop in mail volumes, Canada Post says it has to raise domestic stamps to 90 cents, up from 85 cents.

http://www.thestar.com/business/2015/07/09/canada-post-to-hike-stamp-prices-to-90-cents-next-year.html
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michael78651

09 Jul 2015
10:21:50pm
re: Canada Post to hike stamp prices to 90 cents next year

I call that the "death spiral". I have said the same thing about USPS. In economics is the law of supply and demand. If demand is down, the seller is supposed to see what is causing the drop, and then rectify (if possible) the problem. The postal systems aren't doing that.

The matter here is that the postal systems say that demand is down, so they must raise prices. Then, demand goes down again, and they say that they need higher prices because of the lower demand. The cycle doesn't stop. The result is every time they raise prices, demand goes down. This will continue until they price themselves out of business. They need to increase sales, not chase it away.

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Author/Postings
Members Picture
d1stamper

09 Jul 2015
08:04:26pm

Auctions - Approvals

Canada Post to hike stamp prices to 90 cents next year
Blaming a steep drop in mail volumes, Canada Post says it has to raise domestic stamps to 90 cents, up from 85 cents.

http://www.thestar.com/business/2015/07/09/canada-post-to-hike-stamp-prices-to-90-cents-next-year.html

Like
Login to Like
this post
michael78651

09 Jul 2015
10:21:50pm

re: Canada Post to hike stamp prices to 90 cents next year

I call that the "death spiral". I have said the same thing about USPS. In economics is the law of supply and demand. If demand is down, the seller is supposed to see what is causing the drop, and then rectify (if possible) the problem. The postal systems aren't doing that.

The matter here is that the postal systems say that demand is down, so they must raise prices. Then, demand goes down again, and they say that they need higher prices because of the lower demand. The cycle doesn't stop. The result is every time they raise prices, demand goes down. This will continue until they price themselves out of business. They need to increase sales, not chase it away.

Like
Login to Like
this post
        

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