10. Ormita Helps Members… Buy goods/ services at a Discount Gaining back previously lost profit Save on cash expenses by using credits for purchase Turn idle capacity or excess inventory into valuable resources Barter away “dead capital” for valuable resources Work with businesses to grow their cash customer base Identify and create opportunities Increase turnover Win customers from competitors www.ormita.hk
11. Normal Business Mode Ormita Credit Cash profit Cash profit Ormita Credit Costs Costs Revenue Revenue www.ormita.hk
12. Barter in Modern Times Foundation Core Value Mode Objective www.ormita.hk
15. Client A signs up with Ormita To be given detailed terms and conditions Signs up Membership Application Form No payment is required Clients is given a Ormita account to check out theirtrading history www.ormita.hk
16. Broker A contacts Client A Understands client’s offer of products and services, i.e. prices, specification, terms and conditions, etc. Finds out and understands the Wants of clients, i.e. Top 5 regular expenses of Clients that could be traded through barter . A purchase request form would be filled in by Client A. www.ormita.hk
17. Mix and Match in Ormita Commerce Network A mass email campaign would be broadcasted to announce the engagement of client A and the offerings. Entries would be created in the online network according to the Wants of Clients A. These entries would be reviewed by other Brokers who represents other members that might have offers to satisfy Client A’s wants. Broker A would review entries of other members to find out how Client A’s offers could be sold to other members Business Development Division would source out new members if currently the network cannot satisfy the wants of Client A. www.ormita.hk
18. Negotiation and settlement between buy-side and sell-side If entries are successfully identified and matched, broker would initiate the initial contact between the two parties The two parties would negotiate on the terms and conditions, with the broker helping smoothening the process (Any special settlement required? Partially barter partially cash? ) Should the negotiation and settlement be successful, the accounts of the buy-side would be debited and sell-side credited after the Broker has confirmed the satisfaction of both parties. Should the negotiation be unsuccessful, the Broker would source other members to satisfy the Wants or Offers of Client A www.ormita.hk
19. Notification and Payment to Ormita Each month, a statement would be sent to Client A about the trading history and amount. Client A could always access to the online statement with his or her account. The amount of commission would be listed in the statement and settlement should be made each month. www.ormita.hk
20. Recent Trade StoriesDec 2010 – Jan 2011 BlueScope Steel Purchase: AUD25,000 hotel vouchers Sell: Remaining steel Steel was sold to non-cash customers of BlueScope Won customers from competitors M.A.C. Cosmetics Purchase: €68,175 Advertising Sell: Obsolete Stocks in warehouse Attract more cash customers without spending cash Nokia Electronics Purchase: USD89,715 Printing and Packaging services Sell: Incorrect packaging and product backlog Turn “dead capital” into useful resources www.ormita.hk
21. Trade Example-product/services A wine distributor sold HKD100,000 red wines Commission charge on sale: HKD100,000x7% = HKD7,000 The wine distributor gained HKD100,000 Ormita credits The wine distributor can purchase HKD100,000 products/services from Ormita’s clients Purchased HKD100,000 accounting services Commission charge on purchase= 0%
22. Trade Example-Advertisement/ Expo Booths A wine distributor purchased HKD100,000 advertisement from Ormita’s medias Commission charge on purchase: HKD100,000x7% = HKD7,000 The wine distributor owed HKD100,000 Ormita credits The wine distributor has to sell HKD100,000 products/services to Ormita’s clients Commission charge on sale= HKD100,000x7% = HKD7,000
