other members on a part-cash, part-trade credit
basis
Example:
The publisher of magazine that publishes, on a
monthly basis, a 75-page magazine will have a
nominal cost of adding pages, sold on a part-cash,
part-trade credit basis, to Cooperative members and
the incremental cost of making those sales will be
limited to the direct cost of providing those
additional pages because the operational expenses
are fully paid by the cash sales.
Therefore, the publisher can sell additional pages
for as little as 50% cash and 50% trade credit,
cover its cost and the rest is positive cash flow
and when the company uses the 50% in trade credits,
together with cash, to pay for goods and services
from vendors, also members of the Cooperative, those
savings add directly to the bottom line of the
business. (Note: This method has been used by
advertising providers effectively for over 30 years
in Switzerland).
Examples of Products and Services available from
Suppliers members of the American Trade Cooperative:
Paper, Ink and other product needed in the
publishing business
Goods and services provided by outside contractors
Machines, Equipment, etc.
Maintenance and other services provided by
contractors
Business Services
Real Estate investments
and more….