Description: The pandemic has changed a lot of things, and one of those is how Canadians are pursuing fitness goals. With gyms shut down, or operating under various restrictions, Canadians are stocking up on sports equipment for home and outdoors. The Peloton ‘smart bike’ is a popular – if pricey – choice for some, clocking in at $3,000. It also seems to be a great time to unload your surplus equipment on Kiiji or eBay.
Date: September 26, 2020
Source: cbc.ca
Link: https://www.cbc.ca/news/business/fitness-pandemic-winter-1.5738568
Discussion points:
1) Have you been keeping up with your fitness activity during these strange days? What are you and your fellow students doing in this regard?
2) Do you know anyone who has sold used sporting goods during these past few months? What site or forum did they use to reach potential buyers?
3) On page 4-18 of Wiley’s Financial Accounting: Tools for Business Decision-Making, you can read about how Canadian Tire, one of the companies mentioned in the article, accounts for its sales of gift cards. Discuss with your classmates how you think these gift cards should be treated. Then go to page 4-18 to see if your theory is correct.
Emily Mitchell, Jean-Luc Melanson, Noah McCarthy
1) It is always important to get exercise, and it is even more important now during the pandemic, as it can reduce stress, prevent weight gain, and boost the immune system. Me and my fellow classmates have been doing our best to not let the pandemic get the best of us by trying to keep our mental and physical health at its best. This includes going on walks and runs, booking times at the fitness centre, and even the occasional yoga session.
2) I know a few people, including myself, that have used this pandemic as an excuse to purchase new workout equipment, however finding the things you want is not always easy, as sites like Kijiji sell out within a day. That being said, this is prime time to get rid of workout equipment that you no longer use. I know a few people that have looked to Kijiji as well as Facebook Marketplace to sell their equipment and they have had no trouble finding buyers.
3) Gift cards are a good gift to give to someone, as it helps them decide where to spend their money. For a company, when they sell gift cards, the money that they receive for them should go under deferred revenue because they have received the money, but have not yet provided the item/ service,
Hugo Power, Rachel Price, Dylan Rhyno
1) The pandemic has definitely changed the way people exercised. Personally, I had to adapt my training style. With my gym closing, I had to make an investment in a couple piece of equipment to continue my training at home. However, it has been difficult obtaining equipment. Major retailers such a rogue Fitness, CoreFx, and others are all out of stock and their waitlist go back a couple months. I had to wait 2 months for a piece form Rogue Fitness. It has also impacted gym owners. For example, PlanetFitness in America stated that they will not be able to pay their rent. Goodlife Fitness has also stated lost of members and are starting to offer online training programs to do at home.
2) Personally we don’t know anyone who has sold any equipment online. However, in my search for equipment, I looked into Kijiji, Ebay, and others. Overall it was not a good experience. Demand is high and supply is low. Sellers take that into account and prices have gone trough the roof. I have also heard of Sellers buying equipment from major retailers like Rogue and reselling at a higher price on online platforms.
3) we believe that when the gift card is purchased, the company debits cash and credits a gift card liability. When the customer redeems the card, the liability is debited and the revenue is recognized as a credit to sales
Davide Sebastian Colonna, Gabriel Pascal Champagne, Alea Sophie Büchel
1) Yes, I have bought fitness equipment to keep up with my routines, as well as a lot of fellow students and other people by purchasing home workout equipment. However they have been difficult to find as a lot of places are sold out, and resellers have marked-up the price of equipment in hopes to make profit off of the demand. The closing of workout and fitness facilities due to the pandemic caused a dramatic rise in demand for home workout equipment. During the summer one of our group members worked at a Sportchek location and we discussed how once the store had reopened in late April, they quickly sold out of all things from resistance band, to weights, running shoes and bikes. As soon as the store had restocked they would be gone before days end. Even today as we are 6 months into the pandemic many people still do no have access, or feel comfortable going to a public place to workout, which in turn has still caused major fitness stores and companies to be sold out of equipment.
2) Yes. A few of us ourselves have bought equipment second-hand through Kijiji. We also know a few people who have bought used equipment as well (although the platform used is unknown). Buying used is the only option for some people, as sporting stores have limited inventory due to increased demand and lower supply, as well as the cost of new equipment as well. Kijiji, eBay and other buy and sell websites are popular platforms for buying used equipment.
3) Companies should record the sale of gift cards under deferred revenue. The company has received the money but still has to provide the good/service. Cash will be debited and deferred revenue will be credited.