Posts Tagged ‘Barter License’

Who should barter?

Sunday, April 12th, 2009

In deciding whether or not to get involved in barter, counter-trade or offset trade, the first question a business owner must ask is: Do I have something to barter? The answer is yes for most small businesses. If they have excess inventory, they have goods to barter. If they are a service provider with the capacity to handle more clients, they have expertise to barter.

Businesses suitability to barter

For a business to be suitable for barter exchange membership it must have between a 30-percent to 35-percent profit margin on the products or services that it intends to offer. This allows the business to make a sufficient margin to reap the benefits of purchasing goods / services at a large-enough discount to make the idea worth-while.

Individuals suitability to barter

Individuals are uniquely suited to becoming members of a barter exchange as they are capable of offering services often fall into the “ad-hoc personal needs” category. Whilst each product or service may not be of a high-value they can add up to a significant amount for a business owner at the end of each month. They also provide the ability for a member to make acquisitions using trade credits that are not readily available through other retail barter exchanges:

  • Lawn-mowing & gardening
  • Hair styling / colouring
  • Assisting in letter writing, dealing with agencies etc
  • Handyman type services
  • Book-keeping and other professional services
  • Computer support
  • Website design
  • Housework / cleaning
  • Tutoring and teaching – homework, music, arts, fitness, computers
  • Workshops on any subject members wish to learn about
  • Home exchange for holidays
  • Escorting people on errands and appointments
  • Shopping or doing errands for people
  • Giving time off to people caring for relatives
  • Telephoning – for companionship, membership lists, advertising, language practice
  • Languages – translation, conversation
  • Counselling people in need
  • Food – meal preparation, cooking, baked goods
  • Rentals of tools and equipment
  • Minor auto and bike repairs
  • Gift items, household items, handmade items
  • Recycled sports equipment, children’s items etc.
  • Space – storage, garage, for activities
  • Teaching/supervising others who whish to learn what you know

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 www.ormita.com or www.ormitacorporate.com.

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 www.ormita.com or www.ormitacorporate.com.

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
www.ormita.com
www.ormitacorporate.com

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

Referrals

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

Environmental

Efficiency

  • 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

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

Pollution

  • 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 www.ormita.com or www.ormitacorporate.com.

Counter-Trade

Sunday, April 12th, 2009

Officials of the GATT organization, claim that counter-trade alone accounts for around 5% of the world trade. The British Department of Trade and Industry has suggested 15%, while numerous scholars believe it to be closer to 30%, with east-west trade having been as high as 50% in some trading sectors of Eastern European and Third World Countries. A consensus of expert opinions (Okaroafo, 1989) has put the percentage of the value of world trade volumes linked to counter-trade transactions at between 20% to 25%.

Why counter-trade:

  • Lack of “hard” currency
  • Desire for bilateral trade relations
  • A mode of entering a foreign market

The pro’s of counter-trade are:

1. The world debt crisis has made ordinary trade financing very risky.

2. The use of countertrade permits the covert reduction of prices and therefore allows the circumvention of price and exchange controls.

3. “You scratch my back and I’ll scratch yours” – Bilateralism

4. Excellent mechanism to gain entry into new markets

5. Countertrade can be a good way to attract new buyers.

6. Countertrade also can provide stability for long-term sales.

Counter-trade is generally conducted between governments, large corporations, consists of several different types:

Barter

The direct exchange of goods or services of approximately equal value.

Not used very often because difficult to find goods of equal value.

Assessing value and disposing of goods is also a problem.

Swap / Parallel Barter

Both parties sign two separate contracts that specify the goods and services to be exchanged between them at different times.

Counter-purchase

Seller gets paid but agrees to purchase goods worth the same amount from the buyer.

This form of counter-trade provides the participants more flexibility in selecting goods and in assessing value.

In this way one transaction can go forward even though the second transaction needs time.

Buy-back or Compensation

One party agrees to supply technology or equipment that enables the other party to produce goods.

Seller agrees to accept as payment a portion of the output or buy it back.

Technology transfer, quality assurance, and assured payment.

Usuallyutilized in developing or newly-industrialized nations.

Offset

Offset arrangements are designed to offset the negative effects of large purchases from abroad on the current account of a country. Ex: a country buying an airplace may demand that parts and components be acquired in the local economy.

Used frequently by countries to ensure stable currency flow and employment.

Allows countries and organizations to offset the negative impact of large purchases on balance of payments.

Variations of counter-trade include:

Switch trading

Allows credits to be sold on to a third party

Clearing account barter

As with a retail barter exchange – credits and debits in a barter account with a number of participants

Debt-swaps

Less developed countries with large debt burdens

Debts-for-equity swaps

Debt converted into equity in the debtors firm

Debt-for-product

Debt converted into product from the debtors firm/country

Debt-for-nature swaps

firms or entities buy what are otherwise considered to be nonperforming loans at substantial discounts and return the debt to the country in exchange for the preservation of natural resources

A great deal of counter-trade involves the partial payment of goods or services in cash.

Most emerging market economies have favoured countertrade for economic reasons.

Newly Industrialized Countries favour for competitive reason with countries in Western Europe, Japan, New Zealand, and Australia actively participating and promoting counter-trade.

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 www.ormita.com or www.ormitacorporate.com.

Types of Money – A Table

Sunday, April 12th, 2009

The following comparison of various types of money in circulation shows the private unofficial issuance of currency is not an entirely new phenomenon across the globe.

This, intra-system claims of local exchange trade associations, such as non-commercial local exchange trade systems, LETS, and commercial barter clubs may, in principle, be seen as a private currency in the same way as some claims (transferable to third parties) on enterprises. However, in terms of their economic significance, the regional currencies are not only far behind the official currency, they also occupy no more than a marginal position with regard to the other unofficial private monies.

Official Currency

Private Unofficial Currencies

FORMS OF MONEY

Legal Tender

Corporate Barter

Community Barter

Corporate Monies

Issuer

Commercial barter exchanges

Local enterprise trade exchanges / community currencies / time banks

Airlines, also

telephone providers,

filling stations,

payback

Type of Money

Banknotes & Coins

Deposit Money

Deposit Money

Deposit Money

Range of Acceptance

Broad. Legal tender with mandatory acceptance.

Formally, only members. Restricted to membership base.

Only members.

Regionally restricted.

Only members.

Supra-regional.

ACCEPTANCE

Universal

Restricted

Restricted

Very Restricted

Payment media

Unrestricted

Formally and only members

Only members

Only members

Circulation

In principle, infinite

In principle, infinite. In practice – limited due to market size.

Only very limited: after media have

been disbursed to

third parties, return

flow to issuer

Unit of Account

Official unit of account

1:1 with Legal Tender. In practice – inflation exists within most due to overpricing in market.

Self-defined. Usually in a time-basis.

Self-defined (e.g. Airmiles, payback

points)

Store of Value

Given price

stability, unlimited

Limited since

mostly subject to

ongoing

depreciation and

extra premium

when redeemed

Yes, but limited

range of goods and

services

Limited. Issuer can

discontinue

programme. Expiry

dates in most cases.

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 www.ormita.com or www.ormitacorporate.com.

The history of money and barter

Sunday, April 12th, 2009

Ormita and the Environment

Sunday, April 12th, 2009

Wastage is not primarily created because of over-consumption:

It is created because of over-production and inefficient use of what is produced. Throwing things away instead of recycling or on-selling is one of the major causes of environmental waste across the globe.

Ormita allows businesses to recover the cost, and to make a profit, on their previously surplus or overstocked items whilst maintaining the integrity of both the environment and their own balance sheets.

Time and excess capacity are another priceless non-recoverable, non-recyclable limited commodity. Selling or donating under-utilized time and capacity means greater wealth for the buyer and the local community.

Some other features unique to the Ormita product:

  • Offers the ability for your company to reduce its waste footprint
  • Provides a more efficient way to use and dispose of assets whilst retaining their value
  • 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
  • Less travel and transport required when dealing with local markets

Local asset protection:

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. Ormita is a solution to these issues:

  • As 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
  • Ormita provides an opportunity for local enterprises to sell their products and for communities to reduce the need for imports
  • Community relations and standards of living improve
  • Increased local trade helps to ensure that more local assets stay within the community

Building Community Networks

Because Ormita plugs its members into a local information network, it provides new or isolated residents living in a local community with an instantaneous community support system of other entrepreneurs and consumers.

Local Welfare

Community wealth is not related to the amount of cash in a community, but the amount of assets, capacity and skills. Ormita offers a way to mobilise and transfer assets in times when cash is difficult to come by yet allows for pricing integrity to stay the same.

  • Ormita promotes local entrepreneurship
  • Addresses the need of fair trade between cash poor / cashless groups (school age, elderly, infirmed etc)
  • Creates loyalty and long-term relationships between participants

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 www.ormita.com or www.ormitacorporate.com.

What is Ormita?

Sunday, April 12th, 2009

Website for our members: www.ormita.com

Website for licensees: www.ormitacorporate.com

“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.”

The Ormita Platform allows business owners to exchange their surplus time, products and/or capacity for items they would otherwise have purchased using cash.

Ormita is an International Commerce Network (a Barter or Trade Network).

Ormita is an amazing business opportunity for you.

The Ormita Difference

· Modeled after the Swiss WIR

· Participants commit to a regular buying cycle where they will offset a fixed amount of monthly expenses against new revenue (typically $2000 – $4000 per month).

· NO Joining Fee – Members only sell when they have something to buy (commit to a Buying Schedule)

· Buying Schedule Fee is charged only after the new member agrees to the trade offsets found for them found by their Client Director and Broker.

· NO Monthly Fee – There is no monthly fee is a member meets their Buying Schedule commitments (and pays their monthly commission charges via credit card).

· NO Fee When Purchasing

· 7% Fee When Selling (of the total transaction value)

· Sellers receive part of any sale they make in cash – thereby covering taxes, their hard costs and our administration fees.

· Interest FREE Credit Line

Ormita is the only exchange that focuses both equality and emphasizes on the buying needs of it’s participants before they are allowed to become a member. By purchasing using their own products or services instead of cash, our members can automatically reduce the net cash cost on anything they buy (the difference between the cost to supply a new customer versus buying goods out of existing cash income).

Ormita has an industry-leading trading platform; providing an eMarketplace with full online banking to its members. Each member has a support team that includes their Broker and Client Director to facilitate and manage participation. Transactions include applicable GST or Sales tax.

Depending on the business type, a company may receive a portion of their sales in cash (as defined in our Equity Program). This allows the vendor to immediately recover a significant portion, if not all, of their cost of goods sold and applicable taxes; providing the overall membership with greater availability of products and services at the right price.

There are NO fees for qualifying Media Providers and Non-Profit Organizations and Ormita promotes an aggressive Affiliate Program.

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 www.ormita.com or www.ormitacorporate.com.

How to choose the right trade network

Sunday, April 12th, 2009

Trade can be a valuable tool for any business however the value of any trade credit is only as good as the company managing it. Research shows that almost 86% of new exchanges fail within their first few years.

Many exchange owners “steal from the bank” by operating inflation-causing, trade-slowing, deficit accounts which they use to fund their own purchases but have no way to repay. Be sure to ask questions, do your research and never hand over money until you know that you have a way (and a plan) to spend as well as earn.

Ask to see their Corporate Profile

  • This will detail who their directors are, provide you with information on their business structure and allow you to assess their credibility.
  • Also ask for a copy of their Mission Statement and Statement of Values.
  • Chances are if they do not have these important documents then they are not a serious organization.

Do an Internet search on the Company, its Management and its Owners

If the business is mentioned only once on the Internet then it may be relatively new. If you cannot find any information on the founders then they may have little or no experience in this area.

Ask to see their marketing materials

A solid exchange will have a reasonable amount of high quality sales literature focusing on the different aspects of its business. Remember: your name is at risk if you are dealing a less than professional company.

Find out about the financial management skills and qualifications of the owners

Are the owners or operators accountants, bankers or economists? Do they come from a financial background? Are they capable of safeguarding your assets? Does the organization have sound fiscal management policies?
Assess the integrity of other members

Check to see what other businesses participate in the network. Are they businesses with whom you’ll want to trade?

Find out if there is anything to buy

Make a list of all the products and services you purchase regularly and check to see that the exchange offers these on an ongoing basis. If they are unable to meet at least some of your normal purchasing requests then they are probably not going to be very useful for your business. A good exchange will always provide you with a plan to spend as well as a plan to earn. They will list your regular and upcoming purchases and find you suppliers to meet these needs.

Ask if they charge a fee when you buy, sell, or both

Don’t get caught. Many exchanges charge the same fee twice! Once when you buy, and again when you sell! Your total fees (buy plus sell) should be less than 10%. If they are more than this try and negotiate the price down.

Have the exchange explain their credit management policies

A trade exchange is similar to a bank. It issues credit, produces statements, records transactions and manages accounts. If the exchange does not have solid accounting procedures, or has a tendency to lend (or spend) without any accountability, then it may not be in business for very long.

Request a copy of their policy on ‘deficit accounts’

Would you go to a bank where the CEO wildly spent money that he did not own? The same rule applies for a trade exchange. Have the owners and managers put something in writing that they do not, and will not, operate a deficit account.

Make sure you can sell, but also that your income won’t exceed your ability to purchase.

Find out how to perform transactions

Can you post sales and transfer funds online? Do they offer telephone banking? How do you record transactions manually? What kind of telephone support do they offer?

Investigate their accessibility and office hours

A good exchange should be available at least 10 hours a day. Why? Because not everyone starts and finishes work at the same time. If you need an after-hours vet, to buy a present, change your travel plans or make a last-minute purchase then you should not have to wait until the next morning to find suitable suppliers and settle the transaction.

Find out if you are allowed to sell in part cash to cover your Sales Taxes and non-fixed overheads.

The more percentage trade you accept the more customers you will have, but you probably do not want to sell your car or a high-end, highly desirable product for full trade if you cannot replace it with at least some cash. A good exchange should be willing to negotiate with you, especially if you are providing them with hard-to-find, high quality products.

THE ORMITA DIFFERENCE

Know What There Is To Buy In Advance

By working together to understand your purchasing habits we can find you other businesses who will guarantee to sell to you.

They, in turn, use the credit they earn to make purchases from other businesses within the Ormita system.

This “Buying Schedule” process may take anywhere from 15 – 60 days to complete and it ensures that you always receive quality goods and services at real market prices.

No Monthly or Annual Fees

Purchase and supply agreements are generally set for a minimum of 6 – 12 months in advance.

Provided you stick to the agreed arrangements with these regular buyers and sellers there is no monthly fee and no annual fee.

Buyers Pay No Fees

Ormita does not charge a transaction fee to those wishing to buy.

The only exception to this rule is where a business wishes to purchase advertising from our members. In these cases we charge an advertising booking fee of 7% to the buyer.

As part of this arrangement advertising outlets themselves pay no fees to Ormita at all.

Receive Some Cash When You Make a Sale

  • Depending on your industry you may be eligible to trade on a percentage cash basis.
  • This means that every time you sell you will receive some cash to offset your Sales Tax/GST/VAT costs.

Sellers Fees Are Paid For Them

You pay your fees to Ormita out of the cash you receive when someone buys your product or service.

Lowest Overall Fees in The Industry

Ormita only deals with quality businesses. These businesses make a minimum commitment to trade and benefit from an equity program that does not sacrifice their cash-flow.

We guarantee you a certain amount of savings every month and, as a result, we can better forecast our own income.

Our advanced technology, centralized structure and independent sales and brokerage service allows us the opportunity to have a low overall price and expenses which are directly linked to new sales.

We grow the business as we acquire new customers – not the other way around.

Securing Our Members Assets

  • Ormita is a member of its own exchange and occasionally makes purchases in its own right.
  • Unlike our competitors we fund these costs from sales of goods or services we have purchased for cash and resold to our own merchants.
  • We never operate a trade-deficit and aim to be effective asset managers.
  • Credit lines are based on your ability to guarantee repayment out of new sales within a fixed amount of time.
  • Unrecoverable deficit amounts are accounted for and balanced out with new credits brought into the system from sales we generate ourselves.

A Solid Business
We offer sound fiscal management and help to contribute to the liquidity of the Ormita Commerce Network.

Ormita is the evolution of an idea.
Done better – done right.

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 www.ormita.com or www.ormitacorporate.com.