• Do not buy non-denominational permanent stamps to beat postage price increases.
  • You will lose 2 – 4 % of the cost of the stamps.
  • Wait to buy stamps when you need them.
  • Year over year the cost of mailing a letter has become cheaper.

You should use email over standard mail when ever you can. Email is cheaper and faster than standard mail. However there will be cases where you will have to send standard mail. Important documents will require a paper trail and it is best to ensure that you create a paper trail for security purposes.

Canada Post on November 16, 2006 introduced non-denominational stamps. These are stamps that do not have a value printed on them. The value assigned to them will be the same as the current value of a standard letter. When these stamps were issued the cost of standard letter postage within Canada was $0.51.

According to Canada Post these permanent stamps would eliminate the need to purchase 1-cent stamps after a rate increase. Canada Post usually increases its rate once a year by 1-cent. This increase in price is legislated under price-cap formula by the federal government as of 2000.

Basic letter rate increases, when warranted, will not exceed 66.67% of inflation based on the consumer price index from May of the prior year to May of the current year. Increases will be implemented no more than once a year, in January, and announced no later than July in the year before the increase goes into effect.

Price changes for the remaining regulated domestic Lettermail and USA and International Letterpost products continue to be market-based and proposed increases are scheduled for implementation on Jan. 14, 2008.

With this 1-cent year over year increase we consider the fact will it be worth it is stock up on these non-denominational permanent stamps or would it be frugal to just buy new stamps when the need arises to mail a letter.

Canada Post saves money by not having to print and distribute 1-cent stamps to their retailers.

Date Standard
% Increase Inflation Rate % Increase
Jan 1 2000 $0.46 0.00% 2.2 -2.98
Jan 5 2001 $0.47 2.17% 3 -1.28
Jan 5 2002 $0.48 2.13% 1.3 -2.08
Dec 19 2003 $0.49 2.08% 2.1 -1.88
Jan 7 2005 $0.50 2.04% 1.9 -2.38
Apr 3 2006 $0.51 2.00% 2.4 -1.08
Jan 5 2007 $0.52 1.96% 1.1 0.00

The cost of mail a letter has become cheaper year over year when adjusted for inflation. It would be frugal to just buy new stamps when the need arises, and to never stock up on stamps.

Mailing for Less Postage

Using any of theses methods will almost certainly delay the delivery of your mail. Do not try any of these methods if the letter is important or time sensitive. It will be most likely be late. I am recommending that you do not use any of these methods.

Address the Letter to Yourself

Address the envelope backwards. That is, address the letter to yourself, and put the name and address of the person you want the letter to reach in the place where the return address would normally go.

Some creditors in the United States have taken advantage of this system. They have placed their address on both the recipient address and the return address. Doing so ensures that their bill payment gets to them even if the correct postage has not been affixed.

Insufficient Postage

The Post Office sorting machines cancel stamps at a rate of nine per second, or 30,000 an hour, and the machines only look for the telltale ink present on every stamp over 10 cents in value. For that reason, the only envelopes that get bounced out of the system are those without any stamps.

• Letter is returned to sender for more postage. If there is a return address on the letter.
• Letter is sent to recipient for more postage due. In some cases the letter is held at the post office until the recipient pays the postage this is due.
• Letter is sent to the recipient without any problems.

In most cases placing insufficient postage on a letter will still get it delivered.

Canada Post Stamp Releases -http://en.wikipedia.org/wiki/Canada_Post_stamp_releases_%282000-2004%29
Bank of Canada Consumer Price Index (CPI Inflation) http://www.bankofcanada.ca/en/cpi.html