When the light bulb goes off.

When the light bulb goes off.

Posted: 18-Sep-2017

The fundamental idea that makes ITEX so powerful when benefiting you financially from ITEX transactions is Leverage.  Members that understand this concept, we call it "Getting it!", stay with ITEX for decades and do thousands in ITEX dollar transactions every year.

What is the actual cash cost for you make an additional sale?  Not the cost to keep your business open day to day.  The actual cost to make a new sale, replacing the inventory, etc.  these are costs directly related to the sale.  Called "variable" costs by accountants. 

Because your new sales to ITEX members are in addition to your ongoing cash sales they are considered "incremental" in nature.  In other words, there is a cash cost to each ITEX dollar that is equal to the actual cost the business experiences when making a new sale + the ITEX transaction fee.  Knowing what that cash cost is establishes the Leverage the member has when buying with ITEX dollars. 

Example #1 - A printer has a cash cost of $350 for paper and ink to print a $1,000 job for an ITEX member.  The printer's total cash cost will be $350 + $60 transaction fee = $410.  But he can buy something that would have cost him $1,000!  A discount or savings of 59%!

Example #2 - A chiropractor accepts an ITEX member as a new patient, performing $1,000 in services.  The chiropractor's total cash cost will be $0 + $60 transaction fee = $60.  The new patient is in addition to, not instead of, a cash customer.  He can buy something with ITEX dollars with an 94% discount! 

Leverage = Actual Cash Cost of a New Sale + ITEX Transaction Fees