A zoo in Latvia's capital Riga is providing discounts to a person who’s first or last names are derived from the names of animals or any of natures furry, feathered or scaled creatures. Among Latvians and Russians it is very common for people to have a first or last name that’s derived from an animal. “Dating to the roots of pagan and animistic nature worship, Latvians often have names drawn from nature and animals.”(From RIGA (AFP)) Many famous Latvians such as Artus Irbe (meaning partridge) from legendary hockey goalie and Ivars Lasis (meaning salmon) a spokesman for the Latvian foreign ministry have met the requirement. More than 800 people with animal-like names visited the zoo in 2007. As its 96th anniversary Celebrating coming up, the zoo is offering this discount activity to attract more customers again. This zoo was opened on October 14, 1914, when Riga was part of the Russian empire and now hosts 3,112 animals of 423 species.
Connection
Since the recession has caused thousands of bankruptcy, many goods became a backlog. Business dropped off sharply during the recession. Humanly speaking, the recession was not severe. In this chapter, discount is a very important section. The purpose of a cash discount is to encourage the customer to pay promptly Avoiding Cash Flow Problems. And discount can also attract more clients in one way or another.
Discount is a main factor that lead to the number of customers. Many people would like to pay for a lower price. The graph above shows the relationship of profit and price. The Y-axis is represents profit and the X-axis represents price. The slope of this graph is the number of customers;Discount is like a shift(shift the graph up and down). In order to get more profit and increase the amount of visitor, the zoo chose to make a discount to gain people's attention.
reflection
I think use cash discount to encourage the customer to pay promptly is a very strategy to avoid cash flow problems. Many companies bankrupted because of cash flow problems, although some of them ran very well before they bankrupted. To avoid this problem, many companies normally give their customers 30 or 60 days to make the payment.(Net 30 and Net60)But this also depends on the customer's reputation for reliability in paying. As the book said" A reliable customer of long standing will probably be granted very favorable terms." New customers....? may be expected to make the full payment in a very short dude day at least fro a short time. Also they need to pay cash on delivery.
2 comments:
Hi Leon, this is Hector.
I have some opinions about your article. First of all, I think the discount on payment or goods can really help a business. However, I think doing discount on customers' names is not a quite good idea, because not all the customers can have the discount. It is seems unfair to the other customers who do not have the discount. Also, the discounts on payment or goods are not only solve the cash flow problems, but also the sales. Just like what the graph says, the numbers of customers increase when the price decreases.
next time you leave a comment on a classmate's blog, make sure you leave your name in english.
Mr. B
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