Ormita Global Overview Strictly Confidential Proposal
Unproductive or unsold assets are known as "dead capital " and there is an estimated 9.3 trillion dollars of it world-wide.
Unsold appointment time, empty hotel rooms, unsold venue passes, unfilled advertising space, rapidly depreciating stock, end-of-line items or oversupplied products all represent lost revenue which otherwise will never be recovered.
It is Ormita’s mission to transform this otherwise lost profit into new income, investments and tax benefits for corporations.
www.ormita.com
Barter is the Largest Unregulated Financial Service Industry in the World
www.ormita.com
Non-cash trade, in one form or another, accounts for nearly 30 percent of the world’s total business.
70% of all Fortune 500 companies utilize offset trading.
According to the Association of Advertising Agencies, eight out of ten media corporations engage in excess capacity exchange.
Approximately 65% of all New York Stock Exchange-listed companies barter.
Nearly 400,000 businesses engage in formalised non-cash transactions in the United States.
1. (2004)., Department of Commerce Fact Sheet. USA DOC. 2. Schmiddgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging firms., International Journal of Hospitality Management 3. American Association of Advertising Agencies. (2003). 4. (2004)., Annual Report, National Association of Trade Exchanges. Fact Sheet, International Reciprocal Trade Association. 5. Stodder, J. (2007)., Residual Barter Networks and Macro-Economic Stability. Renselaer Polytechnic Institute at Hartford, Hartford CT.
Four Key Benefits of Barter
www.ormita.com
Reduces existing cash costs
It is always better to make purchases out of revenue generated from new sales
– not existing cash reserves.
Creates value from under-performing assets / unsold time or capacity
Trade excess capacity for already-budgeted for goods or services.
Time sensitive products, space, tickets or services are unrecoverable if not sold.
Receive more value than discounting.
Lets participants buy goods and services at a discount
Use your spare time, excess capacity, depreciating inventory etc to make purchases.
The difference between your wholesale cost (cost to make a sale) and your selling price is the discount received.
Offers Interest-free, no cash-repayment, finance
Zero interest.
Repay borrowings out of new sales – not existing cash income.
Barter Is a Unique Financial Tool
www.ormita.com
In Switzerland barter accounts for approximately $6 billion USD in transactions every year between almost 80,000 business owners.
Barter survives during good times and bad and helps stabilise the wealthiest
economies of the world.
During Argentina’s economic crisis in the 1990’s more than 2 million members joined the barter movement, performing more than $7 billion USD in transactions.
Barter provides an immediate solution to businesses large and small.
Pepsi Cola once traded with the Russian Government the rights to their brand and formulas in return for exclusive rights to export Stolichnaya Vodka
Barter can be used as a way for businesses to convert their surplus into new
investments.
The Governments of Australia, Thailand, South Africa, China, Mexico etc all regularly swap millions of dollars in commodities every month
Barter can conserve cash and provide profitable outcomes.
Bartering Helps Save Cash
www.ormita.com
Ormita customers do not replace cash customers, instead they are incremental (new) income.
We bring new customers to a business through our own marketing activities.
These new customers make purchases and generate new revenue.
This additional revenue is used to pay for a businesses existing costs , expansions, improvements and new acquisitions.
Depending on your industry type businesses are allowed to charge part of their transaction in cash
Ormita is income supplemental to the cash already being generated by selling to existing cash-paying customers. Ormita saves cash by offsetting expenses. It is not meant as a replacement for cash and cannot be used to pay Sales Tax and fixed expenses. Once those expenses are covered, however, by existing cash business, then every additional customer through is new revenue, with a higher margin of profit.
Bartering Supports Local Businesses
www.ormita.com
Ormita:
Targets businesses which have reached a certain level of cash sales but which still have the capacity to expand output - without needing to increase their cash costs to do so.
Provides members the ability to trade their excess capacity or unsold inventory for products and services they need - without the need for cash.
Acts as a centralised broker for trading excess capacity by operating an online and brokered trade floor.
Promotes the trade of excess assets by arranging local networking meetings, producing an electronic and printed membership directory, sending email and SMS broadcasts of latest deals and distributing regular newsletters to participants.
Operates a bank-like system for trade transactions so that members do not have to engage in direct “barter”, thereby allowing them to sell to one member for trade credits and buy from another with the same trade credits.
Allows for trade in areas which are “rich” in skills and assets but “poor” in cash.
Provides a Way to Collect Debt
www.ormita.com
Ormita offers a unique programme which allows business members to
trade bad debts / monies owed to them for products or services which
are needed to reduce their current cash costs.
Allows creditors to take products in lieu of cash if there are no other recovery mechanisms available.
Creditors can exchange recovered products for goods and/or services they need.
Reduces costs for collection, legal fees & interest.
Reduces the risk (unpaid bills, doubtful collections etc).
Maximises the value of what is returned.
Helps participants reduce their ongoing cash expenses so they can pay future bills from cash saved, and in a more timely manner.
Helps Businesses Beat The Recession
www.ormita.com During periods of economic down-turn we can provide businesses the ability to:
Retain value
Turn unsold time or assets into something of immediate value
Build a solid asset base
Retain employees
Retain customers
Expand their market-share
Attract customers away from the competition
Offer loyalty ‘rewards’ to existing customers
Trade their excess capacity for advertising / marketing
Offer more products / services
Allow businesses to compete against the ‘big guys’
Offer low-cost incentives and give-aways
Buy locally – and at a discount
Build a network of businesses buying and selling to one another
Sell goods/services acquired via barter at a lower price than standard retail
Provide a new referral outlet
Reduce their cash output
Save on borrowings
Purchase goods and/or services using their own products – not existing cash revenues
Repay debt with barter
Pay staff-rewards in gift certificates etc
Fund client entertainment and travel through barter
Despite Being 30% of all World Financial Trade
Most Barter Exchanges Are Poorly Run
www.ormita.com
Incorrect mix of customers (not treated as a separate economy)
Members not knowing what is available and lack of education
Exchange owners getting the good products and services first
Existing exchanges are stuck with legacy customers
Lack of Essential Goods and Services
Barter is only useful if you use it to
acquire needed goods or services.
“ The Company also has the ability to spend trade dollars with no obligations to the exchange . The Company has historically spent more trade dollars than it has earned ”
Wayne Sharpe, Chief Executive Officer & Founder – Bartercard. 30 September 2005
Exchange owners constantly spend money they do not own
Lack of sensible credit management policies and procedures
No enforcement of the rules and regulations
Exchange networks being run by “ housewives ” not economists
Inflation
Everyone has “barter” dollars but
there is still nothing to buy.
Despite Being 30% of all World Financial Trade
Most Barter Exchanges Are Poorly Run
www.ormita.com
Trade between different barter exchanges is rare because exchange owners prefer to keep “the good stuff” for themselves / own members
The largest exchanges in the world ($6 billion USD turn-over per annum) shun the only two “associations” whose memberships are severely limited
Lack of a Common Platform
No coherent network of providers.
Caused by a lack of “community” involvement / understanding
Inflation, poor management, historical issues have led to a perception that bartering may have “less value” than federally issued money
Lack of Market Penetration
In some countries penetration has reached 30% or more in the past.
Many exchanges charge monthly fees – even if they did not help the customer perform any transactions that month
High joining fee, high annual fees, interest on borrowing fees etc
High Cost To Use
Typically 12% minimum in cash commission to use.
Lack of fiscal management / enforcement of policies
Imbalance between supply and demand (not really a parallel economy)
Cost to generate a “barter dollar” differs by industry (not really a parallel economy because barter dollars are not as readily convertible as cash)
Over-Pricing
Sellers charging more in barter.
Ormita Is The Answer
www.ormita.com
Founded and operated by Economists
No deficit spending
No currency inflation
Real-world prices
Selective membership
No monthly fees and no annual fees
Buyer pays no transaction fees
Lowest overall price in the industry
Seller receives part of their sale price in cash (thereby covering the fee to Ormita and sales taxes)
Participants do not sell until they have something to buy
We own and operate our own global telecommunications and IT infrastructure
Infrastructure already in place in 36 countries
24 hours a day, 7 days a week live service
Independent professional Board of Advisors
Committed to an environmentally sound, socially responsible future
Mobilises local assets and protects communities
Structure of the Business Model
www.ormita.com Ormita acts as a clearinghouse for the trade of excess capacities, goods and services through a combination of online e-commerce, transaction processing, 24 hour telephone brokering and independent licensees. Rather than promoting direct trade between participants the Company brokers trades through a centralized trade platform. Just like any brokerage firm, Ormita receives a cash commission on each transaction. 3 This ledger system utilises a “trade credit” as a method of accounting with 1 Trade Credit = $1. ( NB. Trade credits are also referred to as Barter Dollars by our competitors). 2 Transactions are recorded in a centralized “ledger” which records the value of the items purchased (debit) and sold (credit) - much like a clearinghouse does for stocks, or a commercial bank does for checks. 1
Ormita Reduces Participants Existing Cash Overheads – Every Day of Every Year
www.ormita.com
Ormita works with customers to return full
value for their excess capacity, unsold time
or devaluing inventory within a defined
time-period and as part of a buying
schedule.
We focus on a businesses existing, ongoing, cash expenses .
There are no costs until a transaction takes place.
We focus on converting a minimum of $2,000 of existing monthly cash expenses into barter.
Every customer provides
us with regular , ongoing,
solid revenues.
Example Business - Regular Fixed Outgoings Which Could Be Bartered $4,000 Employee gifts & bonuses $15,000 $8,000 $5,500 $3,900 $100 Website hosting & internet $100 Water cooler supplies $200 Toner, ink & copier supplies $500 Printing & stationery items $3,000 Legal services $15,000 Equipment (new asset) purchase $500 Client entertainment $400 Cleaning & cleaning supplies $1,000 Car maintenance & cleaning $500 Book-keeping & audit $5,000 Annual employee outing $100 Alarm monitoring $2,000 Advertising Once-Off Annually Quarterly Monthly
Ormita Offers More Ways To Transact
www.ormita.com Y N No-Fee Escrow Agency Services Service Comparison Y N Import / Export Trade Coordinator Y N Independent Complaints Committee Y N Local Exhibitions Y N Dedicated Trade Brokers Y N Local Networking Meetings Y N Member Magazine Y Y Buy & Sell Online Y Y Internet Banking & Online Funds Transfer Y Y Online Directory Quarterly N Printed Member Directory Weekly Monthly Email Newsletters Y ? Fax Broadcasts Y N 24 Hour Phone Banking & Live Brokerage Y N Mobile Phone Alerts Ormita Other Exchanges
Ormita is Community Focused
www.ormita.com
Major partnerships with non-profit organisations
Enables them to trade “in-kind” donations free of charge.
Provides non-profits with a secondary source of income.
Provides tax-deductibility for donated goods
We work to offset a businesses current and planned expenses and only charge once we find the things they need.
Non-profit organisations act as affiliates and referral providers
Builds organic support from within the community.
Provides greater outreach to business owners & socially responsible individuals.
Mobilises the local community
Recovers wealth from existing assets, time and space.
A green solution
Helps reduce waste and takes products off-market.
Meets environmental obligations for business owners.
Honest Service Fees
www.ormita.com
No joining fee
Why should you pay to join if you haven’t yet been delivered anything?
No monthly fees
We believe that we are a service provider – and that members should only pay when we actually deliver what we offer.
No fees until we meet a businesses needs
We work to offset a businesses current and planned expenses and only charge once we find the things they need.
No annual fees
We earn our income from providing a service – not from additional levies and charges.
No transaction fees charged to the buyer
We work to help you buy
Seller receives part of their sale price in cash
Sellers can cover their sales tax and a large portion of their overheads in cash.
Only 7% cash service fee charged to seller.
Sellers commission to Ormita is covered by part of the cash they receive from the buyer.
Founder and former CEO of XO Limited, one of the largest providers of software for the barter exchange industry.
American Economics Association
Canadian Economics Association
Commonwealth Association of Public Administrators
Economic Society of Australia
Internet Society
Midwest Economics Association
New Zealand Law & Economics Association
Kidney Foundation
James (Jim) Gielarowski
Experienced CEO & Business Leader
Founder and former CEO of Pittsburgh Trade Alliance, one of the largest independent barter companies in North America.
American Economics Association
EcoMod
Freelancers Union
Internet Society
Kidney Foundation
The Association of Maintenance Professionals
Global Experience
Seasoned Business Professionals
Economists, Lawyers & Technologists
Real-World Knowledge
Chris Lindstrom Founding member of Berkshares and author on barter and community currencies. Advisor to E.F. Schumacher Foundation. Sjaak Adriaanse Computer scientist and mathematician. Involved in several community currency projects. Maintains over 400 complimentary currency links. Xi Sun Masters in Economics and Law. Founder of Beijing Barter International. Organizer of the International Forum of Community Economic & Credit Systems. Marc Gauvin Founder of NetPortedItems S.L, creator of the DigitalShadowCaster technology. Serves as DMP Chair of Requirements and on Board of Directors. Lynnea Bylund Founder of Catalyst House. Founder of AdMax. Venture capitalist. Nationally recognized spokeswomen. Chris Cook Former director of the International Petroleum Exchange & originator of the Iranian Oil Bourse Project.
Good Corporate Governance
www.ormita.com
Sound Corporate Governance Procedures
Board structured to add value
Code of ethics
Business standards and codes of conduct
Integrity in transactional & financial reporting
Respects the rights of licensees, partners, members and shareholders
Recognises and manages risks
Independent advisory board
We Own Our Infrastructure
www.ormita.com
Our own e-commerce systems and tools
Own developed and/or locally customized Trade Platforms, CRM systems & Learning Management applications.
Unique operational, learning & support tools
Operations manuals for all aspects of the business.
Standards guides.
Process flows & guidelines.
Legal, procedural and functional ‘checks and balances’.
Sales solutions portfolios for every industry.
Educational literature for a range of solutions.
Access to more than $500 million dollars of products
Reciprocal trade agreements .
Direct counter-trade & barter agreements.
International telecommunications infrastructure
Providing local numbers and contact points across the globe.
Agreements With Major Non-Profit Affiliates
www.ormita.com
Agreements with major non-profit organisations to act as affiliates and resellers of the Ormita Brand
Existing active leads of more than 3,640 other non-profit organisations across Australia and the USA
Affiliates produce literature and promote the brand at their own cost in return for a commission on sign-ups and ongoing percentage of transactions
Affiliates build community support for the brand in ways that no other barter exchange has received before
Sustainable Global Growth Plan
www.ormita.com Ormita International National Licensees Regional Licensees Brokers Client Directors Independent Advisory Board
Organic Growth Based on Licensees, Joint-Ventures & Partnerships
Shares the risk.
There is strength in numbers.
Creates brand awareness and recognition while reducing marketing costs.
Offers financial and legal oversight.
Low overheads
Common infrastructure and systems reduces the cost for all licensees and partners.
Shared call centre services and telecommunications systems.
A “people driven business”
Low advertising and marketing costs.
Staff costs reduced through commission-based licensees and resellers.
All of our members provide us with sustainable, predictable revenue
We save our members money and we earn fees based on the cost savings we produce.
Licensees & partnerships world-wide
Negotiated or in negotiation in: Australia, Canada, Egypt, Ghana, India, Iran, Kenya, New Zealand, Philippines, Singapore, South Africa, Turkey, United Kingdom, United States.
Licensee Opportunities Available
www.ormita.com
The non-cash trade industry is one of the few remaining markets in the world today with not only consistent growth, but which is hedged against economic depression and thrives in environments with high business growth and competition.
Become a Barter Exchange owner today
If you have ever considered owning a barter exchange franchise, or starting your own barter exchange business, then you should contact the Ormita Commerce Network.
When you consider the opportunity that becoming an Ormita licensee represents consider this simple question:
Is it cheaper to pay $1000 cash for something (either borrowed money or from of your existing savings) or to make a purchase using $1000 worth of your (previously) unsold time or depreciating / unsold stock?
Any smart person knows the answer to this obvious question – it is better to pay for something out of new income, not current cash reserves.
Everyone wants to conserve cash and generate more wealth and in a highly competitive market every business is on the look-out for something that will give them a competitive edge.
The non-cash exchange industry represents an amazing offering for businesses – allowing them to “trade what they have – for what they want”.
Licensee Revenue Streams
www.ormita.com As an Ormita licensee you will receive revenue from five different areas of the business: 100% of all revenue earned from remarketing of assets acquired directly by the national or regional licensee Remarketing Income National licensees sell sub-licenses to entrepreneurs wishing to operate under the Ormita brand and to resell the Ormita service. Licensee Fees Each month, if a member does not meet their Buying Schedule Commitment, members pay an Association fee of $20 cash. 90% of this fee is split between the National and Regional Licensees. Monthly Fees Every time a member transacts (sells) they are billed a 7% cash transaction fee. 90% of these fees are split between the National and Regional Licensees. Transaction Fees New Ormita members you recruit are required to have a “Buying Schedule” completed by a qualified Client Director. 100% of this fee is kept by the Licensee for their distribution to their staff, sub-licensees and other miscellaneous expenses. Buying Schedule Fees
Explains barter exchange network systems, how they more
Explains barter exchange network systems, how they operate, the benefits to small business and the downfalls of some exchanges. Also talks about currency inflation, business management and how barter exchanges operate. Goes into detail about the Ormita Commerce Network Barter Exchange, barter exchange franchises, www.ormita.com and other information as well as presenting the global infrastructure of the Ormita Commerce Network in this totally recession proof industry. less
0 comments
Post a comment