• For time-based/service industries it may simply be the cost of their spare time (assuming that they have enough cash customers to pay for their existing – non Ormita related - overheads).
• For retailers it may be the wholesale cost of the items which they are selling for a mark-up.
• For accommodation providers it may be the cost of selling an “off-season” room which would have otherwise not been sold.
• For radio and television advertising companies it may be the cost of a 30 second radio spot which would otherwise be playing music.
• For print advertising it will be the additional cost of paper (although this is usually covered in the sale price of the magazine/newspaper)
• For liquidators it may be the book value of the items needing to be sold
Each business will have a different cost to generate a Trade Credit however, unlike cash, Ormita Credits are easier to generate as the members of the exchange are all swapping their surplus space/time/products with one another OVER AND ABOVE any cash business they generate.
When a business uses Ormita Credits it has generated from selling its unsold time/space/advertising/services and uses those Credits to buy things that they had budgeted to pay cash for – they can keep the cash and put it towards another use. Their business grows and the competition shrinks.
Your members can effectively trade their excess inventory or time for advertising that will attract new cash customers!
Let’s say one of your members is a commercial digital printing company:
• Their paper and ink costs them 10 cents per page total
• They charge 50 cents per page
• They print 4000 pages for another Ormita member
• Their customer pays them in Ormita.
Their income is: $1600 Ormita credits and $400 cash
Their cost is: $400 cash
Their gross profit is: $1600 Ormita credits
If these credits are used to offset existing cash expenses they have effectively covered their cash costs, earned additional income, reduced their overall cash outflow (by using this income to pay for part of their existing cash expenses) and generated sales they otherwise would not have seen.
Copying and distributing this article
Ormita provides free updates about the generic benefits of barter to those interested in local currency, community currency, countertrade, reciprocal trade, barter exchange, time dollars, hours and other forms of community trade vehicles.
You may freely copy and distribute this article provided that you attribute the author and/ or source as the Ormita Commerce Network.
About Ormita
The Ormita Commerce Network spans 5 continents, with direct representation in more than 17 countries plus additional partnerships in a further 59 countries. The business allows companies to exchange goods and services on a reciprocal trade arrangement.
Some of our Websites
Ormita Commerce Network Australia – www.ormita.com.au
Ormita Commerce Network Canada – www.ormita.ca
Ormita Commerce Network India – www.ormita.co.in
Ormita Commerce Network Mexico – www.ormita.com.mx
Ormita Commerce Network New Zealand – www.ormita.co.nz
Ormita Commerce Network United Kingdom – www.ormita.co.uk
Ormita Commerce Network United States of America (USA) – www.ormita.com
For Licensee, Franchise and Partnership Enquiries please visit : www.ormitacorporate.com
