Archive for the ‘Benefits of Trade’ Category

Some more benefits of barter

Sunday, April 12th, 2009

Service Professionals

When a business depends on billable hours for profits, every unfilled slot on their appointment calendar represents lost revenue that will never be replaced. Bartering offers these types of businesses the opportunity to:

  • Turn those open appointments into new customers
  • Get a steady stream of new clients
  • Build up your list of happy customers
  • Receive referrals from customers we bring them
  • Use our customers as reference sites for more work

Hotels / Motels / Backpackers / Accommodation Providers

Every night forty percent of the hotel rooms across the country are empty, however, these businesses fixed costs stay the same regardless whether those rooms are vacant or not.

  • Selling empty rooms online using barter makes good sense.
  • No cost to advertise
  • No need to discount
  • Sell only when during down-periods (off-season, cancellations etc)
  • Attract customers to your business instead of your competitors
  • Get a steady stream of new clients
  • Sell previously unsold rooms at full price

Media / Advertising Providers

Advertising is a very perishable commodity. Every unsold advertising spot or print ad cuts directly into your bottom line. With fixed costs and competition on the rise you can’t afford to miss a single chance to build revenue and cut costs.

  • We can help you reach new advertisers
  • Fill your unsold advertising space
  • Take customers away from the competition
  • No need to discount
  • No need for costly promotions
  • Our members pay you instantly – no accounts receivable
  • Turn a loss into a profit
  • Deal with a loyal customer-base

Event Tickets / Entertainment Venues

Your barter exchange gives businesses the opportunity to sell event tickets, venue seats and entertainment attraction passes at the last minute as an alternative to discounting.

Once these types of businesses cover their overheads any additional revenue is 100% profit. Through the effective utilization of the barter exchange platform these businesses can attract additional customers without the added burden of increased advertising costs.

  • Fills empty seats / venues
  • Allows participants to sell at the “last minute”
  • Turns empty spaces into a valuable asset
  • No need to discount
  • No need for costly promotions
  • The seller receives payment instantly
  • Turns a loss into a profit
  • Attracts new customers
  • Instant promotion online, via email newsletters, mobile phone alerts to members and telephone brokered sales

Liquidation Stock

Every year a large amount of businesses find themselves with end of line or last seasons stock, incorrectly packaged or returned products and “new” items which did not sell as well as they initially thought they would.

Instead of discounting this surplus capacity, a barter exchange offers its members a way to receive full market value:

  • No cost to list
  • Sell at full price
  • Sellers get paid immediately
  • Online quotes or fixed-price offers
  • Offers can be limited by date and quantity
  • Participants only have to accept the customers they want
  • Customers are attracted away from the competition
  • New and trial products have a greater market-reach and, if unsuccessful, they do not cause brand impact – something which could have potentially affected the cash-paying customers
  • Businesses receive word-of-mouth referrals
Do you want to know more about the Ormita Commerce Network or become a member, joint venture partner or barter exchange franchise owner?  Visit our website at or

Benefits of Barter

Sunday, April 12th, 2009

Unsold appointment time, empty hotel rooms, unsold venue passes, unfilled advertising space, rapidly depreciating stock, idle production time, vacant seats, end-of-line items and oversupplied products are known as “dead capital” and there is approximately 9.3 trillion dollars of it world-wide.

Barter Provides a Competitive Edge

Business owners in a barter exchange will patronize other members businesses over competition because the barter affiliation is an incentive to do business.  Barter also attracts new customers to a business, without affecting the existing cash sales already being generated by the company.

Barter Increases Sales

A barter exchange markets its members to hundreds of local businesses and thousands nationally — all potential customers, incremental business over and above the daily cash-paying customers. Businesses barter to purchase what they need or want, and pay for them with the additional sales of their products or services.

Barter Improves Cash Flow

There are two main ways of to increase cash flow – additional sales and reduced costs. Barter does both! Barter allows business owners for what you need with what they have – allowing them to preserve working capital for other needs. When a business uses barter instead of cash to purchase needed products and services, they reduce their cash costs by paying for them with revenue generated by incremental barter sales. When they purchase something using their barter exchange trade dollars, the payment is made with new sales … sales that probably would not have happened without the barter exchange affiliation.

Barter Moves Excess Inventory & Fills Idle Production Time

Every business owner struggles with the dilemma of what to do with extra inventory or idle production time. Barter provides a tool to put that excess to use in profitable ways. The barter exchange accomplishes this objective by matching sellers products or services with businesses looking to purchase them on trade. It’s a win-win situation.

Barter Means New Cash Sales

That’s not a misprint – yes, cash sales. Every business owner knows the key to success is referrals. If they perform a good job for a client of they serviced though the barter exchange – they’ll undoubtedly refer their cash-paying friends, clients, family and associates.

Barter Means Increased Profits

Sellers within in a barter network make incremental barter sales (over and above their cash business) and increased sales mean increased profits.

Barter Makes Record-Keeping Easy

The barter exchange works much like a bank, providing control, record keeping, and administration for member’s barter transactions. Direct-trading between businesses, often becomes cumbersome at record-keeping time. With a barter exchange’s convenient clearinghouse concept, there’s no need to keep track of the dollars traded. The barter exchange uses state-of-the-art technology to track all of its member’s barter sales and purchases with an easy-to-read itemized monthly statement. Plus, a member website is available to service their barter needs 24/7.

Barter Eliminates Bad Debts

Barter takes the hassle out of collections. When a member makes a barter sale to another client within the barter exchange, transactions are settled instantly.

Barter Creates Wholesale Buying Power

With barter, the real cost of the products members purchase on trade is actually the wholesale cost of the trade dollars earned. Making sales with built-in profits makes the cost of the purchases more economical on trade. When businesses join a barter exchange, they open the door to a new, cash-free way of handling every day business and personal expenses.

Contacting the Ormita Commerce Network

Some Benefits of Non-Cash Trade and Barter

Sunday, April 12th, 2009

Wealth & ‘traditional’ asset building

Save cash

  • Make purchases from new sales rather than existing cash
  • Reduce cost of warehousing
  • Offset many costs of doing business, travelling, and living
  • Reduce cash borrowings and subsequent interest
  • Repay shareholder loans in trade instead of needed cash
  • Goods and services procured always turn out to be cheaper than they would have been with cash, since there are purchased from the wholesale cost to produce the buyers own product or service (spare time = little cost, products sold = the difference between the wholesale and retail price)
  • Opportunity to convert excess capacity into cashless donations for which a tax-credit can be received

Realise value from underperforming assets

  • Trade excess capacity for already budgeted for goods or services
  • Employee incentives – travel, entertainment, gifts, perks & bonuses
  • Receive more value than through discounting or liquidation
  • Conversion of bad debts into needed goods or services

Increase asset base

  • Add new customers without any additional advertising cost
  • Increase overall company revenue
  • Improve shareholder value
  • Add new product lines which are purchased on barter
  • Participants can trade regardless of the amount of cash in the community or other external economic factors

Borrower advantages

  • No interest charged on borrowed trade credits
  • Purchases are funded through the sale of the borrowers own goods and services (they are obliged to sell their own services to repay the debt)
  • Loans are provided on the basis of what the borrower can produce / sell – not their current turn-over
  • Borrowed funds guarantee additional sales for the borrowing group
  • If a loan is repaid through selling unsold product or spare time then the cost is minimal
  • If a loan is repaid through selling product for retail price then the cost is higher but less than it would be if the loan was repaid with cash

Increase cash sales


Opportunity to convert lost capacity into advertising and marketing

Purchase of additional products on barter for resale in the cash economy

Valued customer give-aways and prizes

Increased market share

More market exposure

  • Another advertising outlet
  • Turns downtime into an increased work portfolio
  • Increased customer base
  • Increase number of potential word-of-mouth referrals
  • Greater exposure to the market of your product or service offerings

Expanding market reach

  • Risk-free method of purchasing / trialling different methods of advertising
  • Facilitate trade between groups historically not likely to trade
  • Build new customer bases away in new areas and use these as a base for references and referrals to acquire cash-paying customers

Repeat business

  • Take away customers from the competition
  • Suppliers become customers of your business group
  • Expanded group of customers

Provides alternate revenue sources

  • Allow for the exchange of goods and/or services in asset-rich, cash-poor communities
  • Provides additional customers without significantly greater advertising cost

Local welfare and sustainability

Local asset protection

  • Stocks of unused goods become mobilized, people become employed, and those traditionally at the “bottom” of the economy like home-makers, farmers and unskilled labourers find a place in the economy, and through it, in society
  • Opportunities for local import substitution are increased
  • Community relations and standards of living improve
  • Ensures that more local assets stay within the community
  • Economies of scale, transfer pricing, and capitalising on cheap Third World labour or raw materials enables larger multinational and interstate manufacturers and retailers to tip the so-called “level playing field” in their direction, to the detriment of local businesses

Builds community networks

  • Because exchanges plug members into a local information network, it provides new or isolated residents living in a local community with an instantaneous community support system, which avoids the embarrassment of introductions to strangers

Local welfare

  • To recognize, value and develop the abilities and skills of the members
  • Community wealth is not related to the amount of cash in a community, but the amount of assets, capacity and skills
  • Promotes local entrepreneurship
  • By increasing access to asset creation by the poorest members of society, the gap between the richest and poorest members of society is reduced
  • Addresses the need of fair trade between cash poor / cashless groups (school age, elderly, infirmed etc)
  • Creates loyalty and long-term relationships between participants



  • Companies may elect to use the ‘pool’ instead of using first-line sales people to market special, redundant or unsuccessful lines in order to maximise sales for their latest or core products
  • Time / excess capacity are a priceless non-recoverable, non-recyclable limited commodities; selling under-utilized time and capacity means greater wealth for the seller and buyer
  • Both unsold products and services can be on-sold without loosing their value


  • Cost to acquire preferred / environmentally sustainable products is reduced
  • Greater purchasing power = more flexibility to acquire environmentally sustainable products


  • Wastage is not primarily created because of over-consumption, it is created because of over-production and inefficient use of what is produced (throwing away instead of on-selling or recycling)
  • Less travel and transport required when dealing with local markets
  • More efficient use of assets
  • Developing and experiencing new habits as consumers

Do you want to know more about the Ormita Commerce Network or become a member, joint venture partner or barter exchange franchise owner?  Visit our website at or