You’ve Got (Costly Canadian) Mail! – Toastmasters 2014
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Canada Post is facing financial troubles due to declining mail volume and rising costs. It plans to cut 8,000 jobs, end home mail delivery, and raise stamp prices by 35% while converting many homes to community mailboxes. The changes are part of a restructuring effort as Canada Post transforms its business model and takes on new services like parcel delivery to remain financially viable in the future.
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You’ve Got (Costly Canadian) Mail! – Toastmasters 2014
- 2. Your Mail Is In Trouble! 0 Home delivery of mail will end 0 ↑ in stamp prices 0 8,000 job cuts
- 3. Why Is This Happening? 0 ↓ in mail volume (core business) 0 Sparsely populated country, fixed costs 0 $106-million (2012) in operating losses 0 0.4% (2013) in revenue growth 0 More pensioners than workers 0 Risk losing $1 billion by 2020
- 4. What’s Next? 0 35% ↑ in stamp price 0 Convert 5.1 million homes to community mailboxes in urban areas
- 5. What’s Next? 0 Restructuring & transformation 0 Obligation: deliver mail to all Canadians 0 Rebranding: letter delivery > parcels
- 6. The Good News! “This institution has [an] incredible capacity to reinvent itself.” ~ Canada Post President & CEO Deepak Chopra
- 8. Sources 0 http://www.theglobeandmail.com/report-on- business/canada-post-loss-balloons-to-193-million- as-historic-shift-takes-hold/article18461383/ 0 http://www.theinternational.org/articles/540- canada-post-price-hikes-prove-detrimental 0 http://www.cbc.ca/news/canada/canada-post-can- reinvent-itself-says-its-ceo-1.2626082
Editor's Notes
- Book: Speeches By Management Project #5: Delivering Bad News Project / Speech Objectives: · Deliver bad news with tact and sensitivity · Organize your speech appropriately for your audience · Conclude with a pleasant note and maintain the audience’s goodwill Time: 5 to 7 minutes Speech Title: You’ve Got (Costly Canadian) Mail!
- *Households and businesses have moved away from mail as a primary source of communication *Less mail equals less revenue, while the costs of providing service are largely fixed *Canada Post has estimated that its restructuring will boost revenues or cut costs by a total of $700-million to $900-million a year by 2018 *The end of home delivery will have the greatest impact, eventually saving up to $500-million a year. Home delivery costs Canada Post twice as much as community mailbox service.
- *Canada Post delivered 1.2 billion fewer letters in 2013 than it did in 2006 *Canada Post, the crown corporation must adapt to technological changes or risk losing $1 billion a year by 2020 *Annual costs involved for Canada Post: $60 per address to deliver to a rural post office; $120 per address to deliver to a community mailbox; and $275 per address for door-to-door delivery *Door to door delivery costs Canada Post about $500 million per year, “which we supported and managed as long as we had the mail volumes to support it, but it’s no longer sustainable”
- *35% ↑ in stamp price to 85 cents (book) / $1 (individual)
- *Rebranding to match competitors: UPS, FedEx > Now: Letter delivery company that ships parcels > Future: Parcel company that carries letters
- *Minimize tax reallocation *More competitive *Reinvention