Chapter 12

http://www.theprovince.com/business/Stats+show+spending+binge+Christmas/2418483/story.html

Summary
This article enlightens us about how Canadians are willing to set out on a vast spending spree for Christmas in December, which in the end proves that our economy is slowing gaining its momentum. For instance, this article states that Canadians have spent a total of 5.2 per cent more in December of 2008 than a year earlier, when retailers notched only a 2 per cent gain as the recession takes place. Moreover, sales on luxury items such as luggage and leather goods stores climbing an overall 18.4 per cent seems to be the most popular commodities. On the other hand, sales at household appliance stores don’t seem too bad also, with a jump of 13.7 per cent. Furthermore, having discounts in stores like Dollarama and Wal-Mart has helped with the increase of purchases with a total of 10.6 per cent increase over December 2008. Last but not least, spending was particularly robust in Canada’s “Boxing Week,” reaching 8 per cent as consumers sought bargains and retailers blew out their Christmas inventory at deeply discounted prices.

Connection
This article connects to chapter twelve because a part of chapter twelve talks about discounts in a business. In chapter twelve, it states that a cash discount can only happen determining by the terms of sale, which refers to the arrangements made with customers as to when the goods or services are to be paid for and whether a cash discount is offered. However, it is this "trust" a business has with their customers that assurs them that their customers will pay their full amount before or on the due date. Furthermore, this "trust" is one of the reasons why a business can be assure to give huge sales and discounts to customers such as the Boxing Week sale, and Holiday sales such as the Christmas sale. Sales or discounts are a huge advantage to a business, though a business will make less profit, it helps to remove old inventories in order to bring in new ones. This is the reason why a business relies on special occasions such as Christmas, and Black Friday to boost up their sales. This chapter also talks about how a business deals with customers with late discounts, and I bet that every business has at least one late discount in a month or a year, especially during huge holiday sales like the one this article states. A late discount can cause a small dilemma because no business wants a reputation for being cheap, but at the same a business does not want to be taken advantage of by its customers. So, if a business decides to disallow a late discount, then the business will have to cash the customer’s deficient cheque and then credit the customer’s account with the amount of the cheque. Furthermore, the business will then write a respectful letter requesting that the customer make up the deficiency. This is probably a small case to any normal, experienced businesses.

Reflection
I am thrilled that the economy is slowly rising again and this is all done because of us, consumers. We get a win-win situation when we spend money on gifts especially during the recession. For example, by spending a little for our family members and friends we can show that we think and care for them, and it will even bring excitement in their life. Furthermore, by spending a little of our money, we can help a business gain profit, and when a business is busy, individuals will have more opportunities to be employed. Overall, this is the first step, in the long run, to help recover the recession.