Replacing Costs:

Example:  A business called Shoes4U.

Shoes4U wants to build a Web Site & has had quotes from $500 to $5,000 but believes the right price with the right people is $2,000 CASH.  

He can also get the same job done using his own 2,000 TradeDollars (Shoe Dollars).  

Question?  If the price & the quality of the Website are exactly the same, what is the difference, which is the best deal?

Trading Facts for this example:  

Shoes4U knows that over the last 10 years.

• The average sale per customer visit is $50.00.

• An average of 10 customers per day.

• The average replacement, wholesale cost of the shoes is $0.50 in the dollar or 100% mark-up.

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Example: COSTS of spending CA$H:

CA$H costs & the number of customers needed to purchase the website using CA$H.

Shoes4U withdraws $2,000 CA$H from their CA$H register (CA$H flow).

4 days later the expected 40 customers have come in spending their average $50.00 (40 x $50.00 = $2,000) but now the shoes sold have to be replaced & put back on the shelves.  

Shoes4U withdraws another $1,000 CA$H to replace the shoes that the 40 customers walked out with & so on.

It will take Shoes4U a total of 79.4 customers (8 trading days) to replace the $2,000 CA$H & all the shoes, that where exchanged for the customer's CA$H.

A turnover of 79.4 customers x spending $50ea = $3,970.00.

It has cost Shoes4U 8 trading days or 79.4 customers that would have normally come if operating under normal pricing & trading conditions.

The website owner buys shoes from Shoes4U's competitors.

Shoes4U has not created any new customers out of the deal, just spent them.

Shoes4U should have a tax deductible expense of $2,000.

The only way that Shoes4U is going to receive CA$H is by exchanging shoes for the customer's CA$H ((swapping one commodity for another commodity (barter deal)).

The commodity CA$H is in far greater demand than shoes, yet the demand for shoes is there but there isn't enough CA$H in circulation for the customers to satisfy all their wants, needs & desires.

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Example: Spending TradeDollars:

What are the CA$H costs to purchase Shoes4U's website using TradeDollars (shoe dollars) a commodity owned & controlled by Shoes4U?

The TradeDollars.com brokers will purchase 2,000 worth of shoes in 50 vouchers from Shoes4U.  Shoes are a good trading commodity & they are in demand.  The shoes can be traded within the TradeDollars.com virtual economy or into other virtual economies in exchange for other high demand commodities.

Shoes4U has paid for the Website & begins using it. 

Paying a bill while making a sale @ Shoes4U's wholesale replacement costs.

NO CA$H has come out of Shoes4U's CA$H register or CA$H flow.

8 Trading days (79.4 customers) later $3,970 CA$H is in Shoes4U's CA$H register &/or CA$H flow.

TradeDollars.com brokers have started to sell Shoes4U shoes broken up into 50 vouchers the average sale that Shoes4U customers spend to maximise the potential to meet new customers.

A potential 40 new customers come in with their 50 TradeDollars vouchers.  Some of the new customers spend more than the 50 TradeDollars & pay CA$H for the extra amount.

It is impossible to receive any more TradeDollars than Shoes4U created which is 2,000.

100% successful, identifiable & cost effective advertising marketing strategy.  No customers, no CA$H costs & when Shoes4U do pay it's at their wholesale replacement cost plus meeting up to 40 new customers.

Shoes4U are now paying a bill while making a sale at Shoes4U wholesale, replacement costs PLUS meeting 40 potential long term CA$H customers & their referrals.

It will take Shoes4U only 4 trading days or 39.4 CA$H customers to replace all the CA$H exchanged to replace all the shoes traded for the Website only if the potential long term CA$H customers do come in.

The industry average on non redemption rate of vouchers is over 25%.

The wholesale replacement cost to Shoes4U for their Website is $1,000.00 not counting the voucher non- redemption rate of 25% which would be $750.00 CA$H.

It cost Shoes4U less than $1,000 CA$H to purchase same web site & meet up to 40 new customers while paying a $2,000 bill.

Shoes4U can claim a $2,000 tax deductible marketing expense from the receipt received when purchased web site that only cost $1,000.