Monday, July 7, 2008

Calculate how much Distance-Related Pricing will affect your publication

Starting January 2009, Canada Post will be switching to distance-related pricing for magazines. According to Canada Post, the changes are needed to offset rising fuel prices, an increase in Canadian addresses, and letter carrier costs remaining the same despite decreases in the number of letters mailed.

This could have some devastating effects on Canadian publishers.

More info below (from the Magazines Canada blog):

To find out exactly what the ramifications are, Magazines Canada has created a downloadable, do-it-yourself calculator that will give publishers a clearer sense of the inflation of their mailing costs under the new scheme. The calculator, based on an Excel spreadsheet, is also available on the organization's website under "Public Affairs".

Of course, the national lobby organization has a clear motive for publishing the calculator; it is hoping that publishers will do the math and let the organization know how hard they will be hit before writing to their member of Parliament to protest.

Canada Post will be releasing its new official rate card on July 14, at which time it will release the correct postal codes to use for mail entry points. As discussed in an earlier post, many publishers were finding that their LCP software was not producing accurate counts because CP was providing incorrect codes which counted all outgoing mail as national in nature. Under DRP, magazines are expected to pay no increase for delivery of "local" copies, up to 1 cent for regional and up to 3 cents for national. In effect, national distribution may cost many magazines an unprecedented increase in delivery costs of up to 8%.
"Many titles not based in large urban centres but that have mostly national reach could be at serious risk,whether or not they are eligible for the Publications Assistance Program (PAP)," said MagsCan in a release. "On top of the negative impact, the Government of Canada is rejecting its own cultural policy concerning access to content.