Across the globe, more and more food and beverage establishments are turning to non-cash / gift-voucher trade as a way to improve their bottom-line. By exchanging their certificates for things that they need, entrepreneurial business owners have been able to pay for their existing expenses with minimal cash outlay. After all, can there be anything better than paying for things using new sales rather than digging into your wallet?
Such non-cash transactions also help restaurants, cafes, clubs, and bars fill empty seats, attract customers away from the competition, develop their market, and help maintain that essential “buzz”. A win-win all round.
Unfortunately, it’s not all plain sailing. Ideally, these types of businesses could trade directly with existing suppliers for things they need but this is not always practical.
Issues such as timing, needs/wants matching, quantity and seasonal variations make direct transactions of this type somewhat challenging, although those who have entered into them see the obvious benefits.
As an alternative to these one-to-one deals, large well-established centralised marketplaces, designed to broker multi-way cashless transactions, operate across the globe. These commerce networks allow participating businesses to engage in virtually any type of trade while eliminating the complication of direct transactions.
• Have unsold venue tickets on one hand, and ongoing sound and lighting expenses on the other?
• Are you buying imported, or local, wines for cash now but still have empty seats some nights of the week?
• Looking for more corporate customers to fill up your empty afternoons or to help you expand into the lucrative catering or venue-hire markets?
The Ormita Commerce Network has recently entered the Indian marketplace to answer these problems, and more. The companies cashless trade network currently spans 46 countries and performs more than $100 million US Dollars of similar transactions every month. Everything from electronics, machinery, produce and minerals are available to members of the system.
An Example Transaction
1. Let’s say that your restaurant has an ongoing budget of 1 Lakh per month for advertising, spread across billboards, newspapers, magazines, and radio.
2. Instead of paying cash for this advertising, Ormita will take 1 Lakh worth of gift certificates from you and give you the same value of advertising in return.
3. You now have 1 Lakh worth of advertising at a cost of between 15% - 30% (the raw material cost to make the meals) and you are paying for your advertising with new sales, not existing income.
Effectively Ormita has:
• Reduced your cash outlay by up to 85%;
• Introduced new customers to your establishment;
• Improved your profitability; and
• Expanded your market share.
Additional benefits
Research shows that, in general, less than 75% of all vouchers ever get redeemed and that a guest with a certificate tends to purchase more than the certificate itself.
You may also get the “breakage” on the certificates you produce - if a customer does not spend the full value of certificate as you do not have to refund the remaining balance.
Brought to you by Neha Gupta
Marketing Department
Ormita Australia Limited
http://www.ormita.com.au
