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.
Ormita works with business owners exchange their “dead capital” in return for essential goods and services - things that they currently pay cash for on a regular basis.
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Did you know that Barter Exchanges rank first as the worlds most commonly used financial tool?
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Barter trade accounts for nearly 30 percent of the world’s total business .
70% of all Fortune 500 companies utilize barter to reduce their cash costs.
According to the Association of Advertising Agencies eight out of ten media corporations use barter on a regular basis.
65% of all New York Stock Exchange-listed companies barter.
Nearly 400,000 businesses engage in formalised non-cash transactions in the United States.
Barter exchanges are recession-proof!
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.
In countries such as Switzerland barter accounts for almost 30% of all transactions between businesses – with more than $6 billion USD being conducted in trade every year.
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Four Key Benefits of Barter
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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 finance with no cash repayments
Zero interest.
Repay borrowings out of new sales – not existing cash income.
Bartering Helps Save Cash
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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
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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
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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
What Is A Barter Exchange ?
Structure of the Business
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
Working To Reduce Existing Cash Expenses
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Ormita sales staff [Client Directors] analyse every business owners existing cash expenses .
We then find equivalent products or services for the same “price” from other businesses willing to barter.
A business owner will reduce their existing, every day, cash expenses and increase their sales.
The net benefit is more cash in the owners pocket, more customers, a healthier balance sheet, more referral business etc.
Businesses do not engage in one-on-one barter because Ormita acts as the central record keeper for the value of each and every transaction.
Eliminating The Need For One-On-One Barter
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Ormita Works With Business Owners To:
Market their product or service.
Find them new customers.
Generate more sales.
Increase their revenue.
Source new suppliers for them on barter.
Record values of barter transactions.
Act as their escrow agent.
Negotiate best prices on barter.
Reduce their existing cash costs.
How We Promote A Members Business
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How Ormita Promotes Its Members
Market their product or service.
Find them new customers.
Generate more sales.
Increase their revenue.
Source new suppliers for them on barter.
Record values of barter transactions.
Act as their escrow agent.
Negotiate best prices on barter.
Reduce their existing cash costs.
There Are Multiple Ways To Transact
www.ormita.com Yes No Multi-Currency Yes No Escrow Agency Services Yes No Mobile Phone Alerts Yes No 24 Hour, 7 Day A Week Phone Banking Yes No Fax Transactions Yes Yes Online Funds Transfer Yes Yes Buy & Sell Online Basic Service Comparison Yes Yes Manual Transactions Yes No Debit A Card Online Yes Yes Online Directory Ormita Other Exchanges
The Downside of Some Organised Barter Exchange Groups
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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“ 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
Many barter exchange owners constantly use the barter system to enrich themselves but offer nothing in return to members who they buy from.
Lack of sensible credit management policies and procedures.
Owners may issue “friends and family” with “barter credit” to buy from the exchange but the products offered in return may not be desired by other members making it impossible for the debt to be repaid.
No enforcement of the rules and regulations.
Many exchange networks are run by “ housewives ” not economists.
Inflation
Everyone has “barter” dollars but there is still ‘nothing’ to buy.
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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Incorrect mix of customers – you wouldn’t join four hotels in the same street and only one printing company because every hotel wants to buy printing but the printer doesn’t need any of the local hotels. Many exchanges simply join “anyone” to make the monthly fees.
Members not knowing what is available .
Exchange owners and their staff getting the good products and services first.
Many barter exchanges have the pitch “we will bring you more customers” but, because of their lack of focus on ensuring the right mix of members – have little to offer their members when the time comes for them to buy .
Lack of Essential Goods and Services
Barter is only useful if you use it to acquire needed goods or services.
You wouldn’t trade your valuable time or products for something you couldn’t use, on-sell or donate would you?
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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Some sellers of hard-to-find items sell them for more than they would on the cash market – this is often perpetuated by the Barter Exchange business because service-industries [who are simply trading an empty room] have a lower-cost to barter and can “afford” to spend more barter on an over-priced item than a product-industry.
There is an imbalance between supply and demand for certain goods and services.
If a member cannot spend his/her barter dollars they are more likely to inflate their own sale price for future sales.
The problem is cyclical – once an Barter Exchange has allowed over-pricing the practice tends to continue.
Over-Pricing
Sellers charging more in barter compared to cash.
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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Many exchanges charge monthly fees – even if they did not help the customer perform any transactions that month.
High joining fee.
Interest fees on barter overdraft.
The hidden cost of being time-consuming to use.
High Cost To Use
Typically 12% cash commission to use.
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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Caused by a lack of “community” involvement .
Lack of education for business owners as to the benefits of barter.
Inflation, poor management, inability to buy needed goods and/or services etc have led some business owners to have the perception that bartering may have “less value” than cash.
Poor management by some Barter Exchanges may give bartering a bad reputation.
Lack of Market Penetration
In some countries penetration has reached 30% - others, such as the USA and Canada have barely broken ground.
Many Barter Exchanges Are Run Badly – Providing Ormita With A Huge Opportunity
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Trade between different barter exchanges is rare because exchange owners prefer to keep “the good stuff” for themselves / own members.
Barter Exchange owners do not know if other exchanges have products or services that their own exchange needs .
Barter Exchange owners do not know if other exchanges have over-pricing and/or inflation within their exchange.
Most trade, with the exception of travel, is local.
The largest exchanges in the world ($6 billion USD turn-over per annum) is solely restricted to Switzerland and refuses to deal outside its borders.
Lack of a Common Platform
No coherent network of providers.
Why Ormita Is The Answer
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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
Own & key partners infrastructure already in place in 36 countries
Only company with 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
Ormita is the only Barter Exchange that works with a Buying Schedule and does not let any participant buy or sell until we have found both suppliers and customers to improve the members bottom line.
Ormita Reduces Participants Existing Cash Overheads – Every Day of Every Year
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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
Good Corporate Governance
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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
Known Industry Leaders To Enhance Credibility
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Daniel Evans
Experienced CEO & Senior Economist
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
EcoMod
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 in the Barter Industry
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.
World-Wide Experience
www.ormita.com Our Directors have personally visited more than 78 Barter Exchanges in 26 different countries
Community Focused
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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.
Agreements With Major Non-Profit Affiliates
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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
A Global Infrastructure
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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.
Honest Service Fees
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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.
No interest on credit lines
NO INFLATION
Real-world prices, honest membership criteria.
What Ormita Provides That Other Exchanges Do Not Have
A Global Presence
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Be part of an already well-established, rapidly
growing , brand
Present on 5 continents.
Company-owned infrastructure in 6 countries and 96 cities.
Product placement in 40 countries and 142 cities.
Reciprocal agreements with other exchange networks.
Multi-lingual.
Allows for exchange between members of your country and others.
Has current access to more than $560 million USD worth of counter-trade products for import/export to your country.
Provides global trade opportunities.
24 x 7 x 365 operation.
Well-known directors.
Leading Market Tested Sales Presentations
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Professionally designed power-point and PDF sales presentations customised with your contact details for:
Business owners [members]
Regional franchisees [your franchisees]
Client director / commission sales agents [your franchisees]
Affiliates [to refer business to you]
Non-Profit organisations [to bring you more goods and services]
Media [to generate publicity]
The Community [to generate local support]
Industry-Specific Solutions
www.ormita.com Accommodation Providers Advertising & Media Companies Automotive Service Providers Dentists Entertainment Venues Excess Inventory Liquidators Health & Beauty Companies Hire Outlets Medical Professionals Restaurants, Cafes & Eateries Retail Outlets Service Professionals … and more
Problem Specific Solutions
www.ormita.com Use Ormita To Buy Goods at a 95% Discount Cash Conversion Ideas How To Choose The Right Barter Network Ensuring Ormita Members Can Spend Evolution of Barter Trade Examples of Large Trades Fighting Inflation Future Sales Hidden Benefits Use Ormita To Get More Cash Customers Invest Without Spending Cash … and many more
A Professional Corporate Image
www.ormita.com Corporate Profile Mission Statement Global Vision & Values Codes of Best Practice Codes of Conduct Brand Standards Stationery tailored with your address and contact details
Pre-Packaged Working Licensee Systems
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Make additional income and spread your Ormita “brand” across the country by sharing revenue with your franchisees – or go it alone.
We have developed a range of materials, guides, training systems and tools to support you in your endeavours to develop your local operation. Complete with legal toolkits, application forms and templates.
Tested & Successful Affiliate Programs
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Let other businesses bring you clients!
Lets you rapidly build a network of referral agents.
Pay-on-performance system.
Provides detailed reports to affiliates.
Standardised methodology for sign-ups and referrals.
Expands your network of customers
Earn more money, faster
Information Rich Website Portals
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Business Info Website: www.ormita.com
Over 187 pages of information.
Only barter website with industry-specific solutions.
Only barter website with downloadable brochures.
Professional and high-quality design.
Customisable with your own domain name.
High ranking on Google.
Licensee Website: www.ormitacorporate.com
Over 98 pages of information.
Only barter licensee website with industry-specific solutions and downloadable brochures.
Helps generate regional and commission sales agent enquiries.
Stands out from the crowd.
High ranking on Google.
Compare Us
Other Barter
Companies Websites:
No detailed info
No industry info
Not well designed
Not easy to understand
Only found if searching for barter
Hard to find contact details
Difficult to lodge an enquiry online
No downloadable brochures
Multi-Million Dollar Online Trade Platform
www.ormita.com
Additional Non-Essential
Functions Available at Extra Cost:
Automated Telephone Banking
Mobile Phone / SMS Banking
Electronic processing of “Ormita” branded swipe cards
World-Leading Trade Platform
Online funds transfer
Buy and sell online
Online escrow
Multi-user
Multi-currency
Online statements
Debit an Ormita Card online
Manages multiple levels of commissions for franchisees
Cash receipts
Complete member management
Full reporting
More than 5 years of work by 52
full-time development staff.
Fully Hosted and Maintained CRM System
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Allows you to track and manage sales leads
Online contact & lead management
Accessible by remote offices via the Internet
Share sales leads across the country
Run email campaigns
Keep track of communications with leads
Opportunity and contact management
Detailed reporting tools
Conversion of leads to customers
Multiple levels of security
Well documented and complete with user manuals
Allows you to build your own email templates
Manage communications across the entire team
Share and transfer leads globally
No cost to use, maintain or host
An Online Learning Management System
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Assists in training your
staff, licensees and
partners
Low cost to train additional staff.
Provides online testing and certification.
Online videos and resources.
More than 10 courses on a range of topics from the history of barter through to management and sales.
More than 2960 hours of development to date.
Note: Online training system due to launch 1 October 2009. Not suitable for Regional Licensee sales and implementation training.
Global 24x7 Telephone Infrastructure
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Redundant Voice-over-IP telephone
PABX system
Fully hosted and managed by Ormita Technical staff – no maintenance cost.
Provides free global call routing – customers can reach you no matter what number they dial – anywhere in the world.
Free call-overflow to our 24 hour a day, 7 day a week, 365 day a year messaging service.
Add, move and change lines and setup instantly.
Free international calls to more than 30 countries.
Multi-million dollar system.
Complete Tool Set For Transaction Processing
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Tested Systems and Procedures
Personalised Plastic Transaction Cards
Point of Sale Material
Transaction Processing Material
User Guides & Manuals
Ormita accounts are global and,
subject to member and
exchange credit restrictions, can
be used globally
More than 423
hours of
development
Tried, Tested and Proven Operations Manuals
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Complete set of Operational,
Franchisee and Human Resources
Operations & User Manuals
Legal agreement templates included
Saves time managing staff
Provides consistency of operations
Reduces risk
Brand Standard Guides
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Guidelines for sending the right message and creating the right mood to communicate the Ormita brand and its promise.
Provides standardisation of literature between licensees, partners, affiliates and members.
Offers templates and materials for use for licensees, partners, affiliates and members.
Ensures consistency of logo use.
Acts as a repository for brand information.
Complete with new marketing materials approval processes.
31 pages plus attachments.
Accompanying CD Rom complete with source-files for all marketing, administration and in-house documentation.
More than 3,256 hours of unique development involved in creating the Ormita brand.
Administration Form Templates & Procedures
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Based on 37 years experience in the global barter industry.
Well defined forms and processes.
From applications, cancellations, lost cards, transaction queries, document approval, human resources applications, partnership approvals and more.
Pre-packaged for your immediate use.
More than 567 hours of development.
FAQ Sheets
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Provides you, your licensees and staff with standardised answers to common problems
Constantly updated.
Learn from the experience of others.
Provides a mechanism for sharing information between licensees in other countries.
Allows for standardisation of questions and answers to internal and external stakeholders.
Thousands of hours of development, based on years of experience.
Internationally Accepted Legal Templates
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Complies with international standards.
Financial service checked.
Lawyer checked.
Includes policies for members, licensees, partners, personal guarantees and more.
Based on years of experience in the barter industry.
Provides a solid framework in which to operate the barter exchange operation.
Saves money on legal costs and possible business interruption.
Tested Website Advertisements
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Visually stimulating banner advertisements
International partners will also drive traffic to your website as more people advertising the Ormita brand benefits all licensees as a whole.
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