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Cost of trading with TradeDollars:

The secrete to successful trading:  is to know & understand the difference between the cost of TradeDollars and CA$H (regular money).

TradeDollars costs = Variable costs + new customer

CA$H costs = variable cost + fixed cost + profit/loss 

Total sales - (fixed cost + variable cost) = profit/loss

You need to be able understand the differences of trading in two different and independent economies. eg. CA$H economy & a virtual economy.  CA$H because of the way it is created is a scarce commodity & helps to drive prices down because of the competition to get the CA$H.  The demand for the G&S is there but not all the customers can afford to purchase because of limited amount of CA$H in circulation.

The actual amount of CA$H in circulation doesn't equal the amount of G&S available for sale or could be for sale.  TradeDollars are abundant & limitless as the people indirectly exchange via TradeDollars.com what is already there or can be created by each & every individual.  Money is the people, a belief, without either there is no money.

The forces of supply & demand that dictate PRICE changes from one economy to another especially when you change the medium of exchange used to store value.  In the TradeDollars.com virtual economy the demand for most G&S is strong.  The ability for the customers to pay is greater because the medium of exchange used is what people have in abundance.  Their TIME (to be of service to others in exchange for TradeDollars) & their assets, their goods (they have accumulated over their TIME spent) in exchange for TradeDollars.  

The Basis of any successful business is the ability to know the different types of costs of running the business and whether an adequate margin or mark up is added to the cost to ensure a profit.  Recognising all the costs that are involved in producing the goods or services that your business offers.  Classify these cost into fixed and variable cost.  Recognise the relationship between cost, profit and volume.  Know how a break-even point is calculated.  Know what the unit cost is in cash per dollar.

There are 2 things a business needs to do, increase it's turnover & conserve it's  cash flow.  This can be achieved by exporting & importing into other local economies.  Running a business in the CA$H economy and being able to purchase goods & services from a virtual economy.

Another way of looking at it.

Exporting your goods & services into a new virtual market of traders that might live next door, interstate or overseas will increase your turnover & to a new customer database. 

Importing goods & services, purchasing them for TradeDollars that you where going to purchase with CA$H will conserve your cash flow and enhance your life style.

 

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