www.ormita.com recovering full value from unsold products and/or time
TRANSCRIPT
www.ormita.com
RECOVERING FULL VALUEFrom unsold products and/or
time
THE CURRENT SITUATION
• There are not enough customers (with money) to go around
• Liquidity is still an issue for many businesses
• Market competition created by a lack of customers can cause overall price reduction
• There is pressure from those with lower labour and material costs
• Few of us have cash to invest in the future …(even if we really wanted to)
Business Today
6 TRILLION DOLLARS WORTH OF UNSOLD
GOODS AND SERVICES IS WASTED EVERY DAY
GETTING RETURNS FROM EXCESS
CAPACITY
• 70% of all fortune 500 companies 2
• Eight out of ten media companies 3
• 65% of all New York Stock Exchange listed firms 4
• More than 129 governments 5
• Nearly 400,000 businesses in the USA 6
• $6 billion USD value each year in Switzerland 7
• 18% of the Argentina economy in 1995 8
• Most start-ups boot-strap themselves with barter• Frequent-flyer points
More than 30% of all global trade, is non-cash, including: 1
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 Management3. American Association of Advertising Agencies. (2003). 4. (2004)., Annual Report, National Association of Trade Exchanges. Fact Sheet, International Reciprocal Trade Association.5. United Nations Commission on International Trade Law. Vol XIX. (Yearbook). A/CN.9/3026. Stodder, J. (2007)., Residual Barter Networks and Macro-Economic Stability. Renselaer Polytechnic Institute at Hartford, Hartford CT.7. Studer, T (1998)., WIR and the Swiss National Economy8. Pearson, R. (2003)., Argentina's Barter Network: New Currency for New Times., Bulletin of Latin American Research
What the Media Says …
• Advertising & Media• Essential Goods & Services• Fixed Assets• Gifts & Rewards• Healthcare• Investments• Products & Services• Travel & Entertainment• Wholesale Commodity Items *
What If Your Excess Capacity Could Purchase …
* Available to qualified corporate traders and governmental customers only?
• Reduces existing cash outlay• Buying using your own goods or services as
payment is a lower-cost option than purchasing using cash
• Helps expand (or maintain) market share• Increase sales• Sidesteps liquidity problems• Cleans up bad debt situations• Offers interest-free credit• Credit is based on unsold capacity versus cash
credit which is based on pre-sold capacity
Creating Value from Under-performing Assets
THIS IS A FORM OF BARTER BUT IT IS
NOT DIRECT BARTER
1. You do not need to buy directly from the person you are selling to
2. You can buy from any member of our network
3. Goods and services are priced the same as cash
HOW CAPACITY EXCHANGE WORKS
1. Ormita will never devalue your current cash market
2. Ormita will only offer your service for exchange into markets where it does not currently exist and/or where there is low brand awareness
3. Customers who acquire your product or service through exchange are more likely to give positive feedback
4. The cost for you to service an additional customer may be nominal versus what you gain in return
Basic Principles:
Retail Shop
Radio Station
Hotel
Manufacturer
Hospital
Accounting Firm
Your business
Your business
Direct exchange
is not necessary
Retail Shop
Radio Station
Hotel
Manufacturer
Hospital
Accounting Firm
Your business
You wish to buy from
these companies
Retail Shop
Radio Station
Hotel
Manufacturer
Hospital
Accounting Firm
These people could
buy from others in the
network
Your business
Retail Shop
Radio Station
Hotel
Manufacturer
Hospital
Accounting Firm
Your business
Your business
These businesses could buy from you
Retail Shop
Radio Station
Hotel
Manufacturer
Hospital
Accounting Firm
Your business
Your business
To make the transactions workthis needs to happen
When you sell your account is credited
(for the same value as if you sold your spare time / capacity for cash)
$0
$1,000
$2,000
$3,000
Made sale worth $3,000
When you buy your account is debited
(for the same value as if you purchased using cash)
$0
$1,000
$2,000
$3,000
Made purchase worth $2,500
-$1,00
0-
$2,000
Accounts balance over a period of time
(you do not buy and sell at the same time)
$0
$1,000
$2,000
$3,000
-$1,00
0-
$2,000
Balance left in account = $500
Transactions are recorded in a central ledger (like a bank
statement)
• Sources new customers for you
• Records the value of each transaction when it takes place
• Acts as a third-party to mediate between delivery of goods and services
• Finds alternative (non-cash) suppliers for you to make purchases from
Ormita :
1. Ormita customers do not replace existing cash customers
2. Ormita brings new you only new customers
3. These customers generate new revenue
4. Your businesses uses this revenue to pay for: - advertising- existing fixed costs - brand development- business expansion- new acquisitions- business investments
Generating New Revenue
WHAT CAPACITIES CAN BE TRADED?
ADVERTISING- Ad Specialty- Billboards- Blimps- Coupons- Direct Mail / Flyers- Fax Broadcasting- Internet Advertising- Magazine- Messages on Hold- Newsletters- Newspaper- PR Management- Printing- Radio- Sidewalk- Signage- Telemarketing- Television- Trade Show Exhibits- Videos
ADVERTISING SPECIALTY - Audio Visual Prod- Graphic Design- Desktop Publishing- Engraving- Silk-screening- Film Separation- Photography- Printing- Publishing- Recording Studio- Web Page Design
AMENITIES- Awnings- Building Inspection - Building Maintenance- Electricians- Elevator Maintenance- Engineering- Equipment Rental- Gardening - Gas Installation- Gas Repairs and Maintenance- General Contractors- Glass & Mirror Installation- Glass Tinting- Grading & Excavation- Heating Repairs and Maintenance- Hot Water Repairs & Maintenance- Landscaping- Light Fittings & bulbs- Locksmiths- Painting & Decorating- Parking Lot Maintenance- Pest Control- Plumbing Repairs & Maintenance- Roofing- Snow Removal- Tree Removal & Trimming- Ventilation- Window Cleaning- Window Tinting
AUTOMOTIVE- Air Conditioning- Brakes- Detailing- Glass Repair- Muffler and Exhaust- Painting- Parts and Accessories- Repair and Maintenance- Stereo and Alarm- Tires- Towing- Transmission Repair- Truck Lease- Truck Purchase- Warrants / Permits- Window Tinting- Vehicle Lease- Vehicle Purchase
COMMUNICATIONS- Line Rental- Long Distance Services- PABX Purchase/Upgrade - PABX Rental- Telephone Answering- Telephone on Hold- Telephone Repair- VOIP Solutions
COMPUTERS & NETWORKING- Audit- Computer Cabling- Computer Hardware- Computer Repair- Consulting- Hardware- Internet Access- Network Installation- Network Maintenance- Network Monitoring- Network Support- Printer Repair- Printer Toner- Security- Software- Training- Website Design- Website Hosting
CONSULTANTS- Communications- Food- Health- Human Resources- Market Research- PR & Marketing- Sales- Special Events- Training
EMPLOYEE HEALTH- Addiction Recovery- Chiropractors- Dentist- General Practitioners- Massage Therapy- Optometry- Orthodontist- Psychiatry- Surgery
EQUIPMENT- Art & Art Hire- Books- Computers- Electronic Equipment- Equipment Lease- Equipment Repair- Food Handling Equipment- Furniture- Indoor Plant Rentals- Machinery- Medical Equipment & Supplies- Mining Machinery- Office Furniture- POS Equipment- Shelving- Specialist Products- Stationery Supplies
HUMAN RESOURCES- Catering- Data Entry- Employee Testing- Employee Training- Employment Recruiting- First Aid- HR Consulting- Newsletters- Secretarial Services- Seminars & Trade Shows- Temporary Services- Trophies & Awards
OFFICE SERVICES- Carpentry- Carpet Cleaning- Cleaning Supplies- Drapery Cleaning- Dry Cleaning- Furniture Cleaning- Janitorial Services- Repairs and Maintenance- Upholstery Cleaning
POSTAGE & FREIGHT- Air Freight- Bulk Mailing- Container Hire- Container Storage- Couriers (Local)- Envelopes- Freight Logistics Management- Freight Storage- International Freight- Long Distance Freight- Mail Handing Equipment- Mail Handling Supplies- Moving Service- Offsite Storage- Packaging Services- Packaging Materials- Pallets- Rail Freight- Sea Freight / Containers- Truck Rental
PROFESSIONAL SERVICES- Accounting & Audit- Customers / Freight Brokers- Financial Planning- Legal Professionals- Management Consultants- Security Specialists- Taxation Specialists- Telecommunications Consultants- Translation
TRAVEL- Air Fares- Airport Transfers- Backpacker / Hostels- Car Rentals- Conference Rooms- Hotels- Interpreters- Long Term Corporate Suites- Luggage- Restaurants- Taxi Fares
OTHERS- Equipment Rental- Food Items- Furnishings- Imported Goods- Machinery- Minerals- Office Rental- Raw Materials- Real Estate- Tools
SECURITY- Alarm Installation & Monitoring- Fire Audit & Control Systems- Investigations- Security Audit and Equipment- Security Patrols
STATIONARY- Binding Equipment- Binding Supplies- Cleaning Products- Coffee & Beverages- Filing Materials- Lamination- Office Misc.- Office Supplies- Paper Supplies Pens / Pencils Photocopy Services Printing Water Coolers Water Filters
… and much more
WHO IS ORMITA ?
> Multilateral Barter
> Tolling
> Counter-purchase
> Offsets
> Switch Trading
> Compensation / Buyback
> Venture Capital
COMPANY SNAPSHOT• Founded in 2001 as a financial services software
provider• Currently the world's largest non-cash (barter) trade
house in based on annualised figures as of Dec, 31 2011
• Operations across 17 countries (2011)• Expanding to 21 countries (2012) • Customers in 54 countries
Government32%
Manufacturing41%
Media8%
Mining6%
Hospitality4%
Other9%
MARKET ACTIVITY
MARKET SEGMENTS BY VOLUME
Jun 1998
Jul 2001
Feb 2002
Oct 2009
Jun 2007
Sept 2008 Dec 2011
OUR HISTORY
Business Internet Services Ltd partners
with ITEX barter exchange in New
Zealand
ITEX quits New Zealand. BIS directors
start developing financia lservices
application software
Incorporated as “XO Limited”, the company
begins to take on customers
Owners sell assets of XO Limited and begin
to acquire independent barter exchanges
Owners sell assets of XO Limited and begin
to acquire independent barter exchanges for rebranding under the
name “Ormita”
Ormita brand now operating in 6
countriesUK Government
publishes report on alternative financial
instruments and barter, citing Ormita as the
world’s largest global exchange network
0
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011
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5
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30
2007 2008 2009 2010 2011 2012 2013
BUSINESS GROWTH
GLOBAL TRADE VOLUME(millions of U.S. dollars)
NATIONAL OFFICES
People & Facilities
People & Facilities