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REA-5 Open for business. December 12th, 1985
Open for business.
Commercial significance.
A LETSystem will only develop its full benefits when a full
range of commercial services is available.
Most of our regular expenditures are in the supermarket, the gas
station, the hardware store or the restaurant.
The people who operate these businesses are members of the local
community and this is their way of serving it.
They can be acknowledged for these services in green money just
like anyone else.
Just like anyone else, it makes sense for any business in the
community to use money that recirculates, generating return
customers, each with more money to spend.
Business is just people at work, and green money makes every bit
as much sense for business as it does for people.
Accounting procedures.
Each mainstream business that joins the local LETSystem saves
cash for the membership and increases their spending power.
For the business it means more customers, and provided they
follow the intelligent course of collecting enough cash with each
sale to handle actual direct costs - wholesale costs, delivery,
taxes, etc. - they simply cannot lose.
Any business that can stay afloat in the conventional market can
flourish in a green economy.
It is very simple to use green money in almost all business
situations.
The task of accounting is only a fraction of the effort
currently required for keeping records and balancing the books.
Anyone who declines to make profits on the grounds that it takes
too much trouble to count them is not likely to be in business
much longer anyway, so let them be.
Landsman Community Services Ltd. REA-5 Page 1
REA-5 Open for business. December 12th, 1985
Pegging value.
A green dollar shall be considered to represent a dollar.
A dollar is simply worth what you can get for it.
Specific green dollar allowances in general retail markets
establish the local green dollar as equivalent value.
This is an important step as the labour market will be responding
to the comparative availablility of the green money with
differential rates, as indeed it should.
The green economy will always remain liquid and booming and
support higher wage scales than a cash economy in recession.
This can lead to concern and suspicion about inflated rates, with
a consequent detriment to the process.
When green money buys food at the store, dollar for dollar, the
issue is essentially resolved.
Short and long term.
Most business is concerned about its slice of the cake.
How big is the total market ? How big is my sector ? What is
the share that I get ?
In the initial stages, any business that is willing to think and
act on the figures can see a bottom line cash flow justification
for joining a LETSystem.
Even if the LETSystem has only a few members, the extra cash flow
from their patronage will more than offset any costs incurred.
Typical payback periods for a life membership will be often as
little as a few days, and virtually never more than a few months.
And this is taking no account of the value of the green dollars
themselves.
So in the beginning, business can be led by the carrot.
It is by nature competitive and profit-seeking and will respond
to anything that promises short term gains.
In the long term the LETSystem provides another layer to the
cake, and it makes sense for a business to be in it for that
reason alone.
Landsman Community Services Ltd. REA-5 Page 2
REA-5 Open for business. December 12th, 1985
Not to gain advantage over the competition but just to be in the
game at all.
The market shares of competitors may not move much, but the
market itself will be bigger.
In the end, the green money market will represent a large enough
proportion of the total that almost every business in your
community will take part.
It would be very bad business to do otherwise.
This isn't the stick that often follows the carrot, and beats the
reluctant into line.
It will always be perfectly possible to do business without
green, just as it is now, and evidently has been since the game
began.
It will just be bad business to exclude oneself from that sector
of the market, something like declining to serve people with blue
eyes.
Landsman Community Services Ltd. REA-5 Page 3
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