Example of the Restaurant and the Printer
The Scenario
A restaurant wants to change their menu and a printer has quoted £700 to produce them.
Options
If the restaurant wants to generate more business in order to pay for the new menus he has a few options. If he is not a member of Silvatre then to generate the extra business he must provide an offer such as a 2 meals for the price of one deal.
The 2-for-1 Deal
By introducing a 2-for-1 deal the restaurant must sacrifice some of their profits on these additional meals. If they make £20 per table of 4 on the new offer then they need to sell 35 extra tables to generate the £700
The Options
Selling the meals on Silvatree
If the restaurant is a member of Silvatree he can instead sell the meals that he would ordinarily sell for £100 for 100 Silva.
Selling the meals on Silvatree
After selling 7 tables of 4 to Silvatree members for 100 Silva each, the restaurant has generated 700 Silva. The Silva can be used to pay for the printing of the menus with a printer who is also a member of the exchange.
Comparing the Options
Cost of Providing the Cleans
With the 2 for 1 deal the restaurant needs to provide 35 meals forthe table of 4 to generate the extra money needed to pay for the menus.
Discount
By using Silvatree the menus have only cost the restaurant £245 instead of £700. This is how much it cost the restaurant to provide the meals.
Efficiency
Using Silvatree is a far more efficient mechanism for getting the most out of your business's spare capacity.
How did the restauranter and the Printer benifit for using Silvatree?
Each meal for menu resturant needed to sell 35 meals on the 2 for 1 deal.
With Silvatree the restaurant only needed to sell 7 meals to be able to pay for the menus.
Menus cost 7 x £30 + 5% Trade fee to 30= £245
The restauranteur did not have to bear the cost of the discount provided.
All diners still dined at a discount equivalent to their own Gross profit Margin!
Benefits to the Restaurant
There are numerous benefits to the restaurant from having conducted the business on trade. Some of these benefits are listed here.
Menus Paid for at Discount
Conserved cash in business
New Business
Extra Word of mouth advertising
Increased Turnover
Benefits to the Printer
There are numerous benefits to the printer from having conducted the business on trade. Some of these benefits are listed here.
Increased Turnover
Trade silva that can be used for others business
Increased Profit
Extra word of month advertising
Reduce square capacity
Members of the Silvatree Exchange can pay for their business expenses with their own goods and services and thereby get a large discount.
Using our barter system allows members to fill downtime in their business and so become more efficient and more profitable.
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