Example - RETAIL STORE

Overview:
New customers will travel further, passing other stores on the way, to buy from your store because you accept their trade credit as a form of payment. When they spend trade credit at your store they are saving money (see your example scenario below).

Some assumptions:
1) You are the business owner.
2) Your store is open, the lights are on and your staff are working.
3) You want to sell more of your products.
4) Your "cost of goods sold" is 28%. (an item that you priced at $100.00 cost you $28.00 wholesale)
5) You don't know how you will spend trade credit.

The scenario:
A customer purchases an item priced at $100.00. They pay 100.00 in trade credit.
Then you purchase $100.00 worth of brochure printing for your store and pay for it in trade credit. That $100.00 purchase cost you only $40.00 (for a discount of 60% saving you $60.00).

Here's how we got there:
The item cost you $28.00 wholesale, and the trade exchange charged you $12.00 when you spent the 100.00 in trade credit (a 12% transaction fee). $28.00 + $12.00 = $40.00.

Summary:
Your store gained a new customer just by being a member of Island TradeLink, and you were able to purchase printing at a much lower cost.

Remember; you have fixed costs, and when your store is open for business, you have operating expenses such as utilities and salaries. We only factor-in your cost of goods sold because the store is already open with lights on etc.

In this example we described a purchase almost immediately after you sold something - but you don't have to spend your trade credit right away, you can save it like cash. And we described a purchase of printing - but you can buy whatever you want or need.
View our list of recent purchases for other ideas.

Customers paying with trade credit must be considered extra, new customers. You should welcome them only when you have inventory you want to sell easily (cash IS "King"). Customers paying with trade credit are accustomed to paying "regular" list prices, and you can designate certain items that you will accept trade credit for.

If you have slow moving inventory, sell it to members of the trade exchange at your regular price and use the trade credit for other things instead of spending cash.

Learn more about the benefits.