DO MERCHANTS RISK HAVING FULL-CASH CUSTOMERS TURN INTO PARTIAL-CASH, DUALCURRENCY CUSTOMERS?

In today’s competitive business environment, there are always risks with every sale, special offer or promotional program that businesses will take in less cash per item sold, while hoping to make up the difference in volume. In other words, the trend in commerce is for more and more customers to
find the lowest available prices (especially by searching the Internet). This trend cannot be blamed on DualCurrency Commerce, now or in the future. Such downward pressure on prices and cash flow is likely to continue, for as long as unbridled competition remains the standard mode of operation in business.

On the other hand, DualCurrency Commerce has several distinct advantages over traditional discounting that help to counteract the dangers of disrupted cash flow for participating merchants. First, while discounts reduce cash income that turns into employee wages and benefits or profits to owners, Business Dollars provide an alternative form of purchasing power in place of any that is lost. Second, while lost revenues traditionally send shock waves throughout an entire network of inter-dependent merchants and vendors, Business Dollars again provide alternative resources that create stability and upward momentum among all the related parties. Third, discounting generally costs additional cash for advertising to make the special offers known. A DualCurrency Network drives additional business to participating merchants, while lowering the cost of acquiring and retaining customers. The DualCurrency system also cuts transaction processing expenses derived from counting currency, coins and checks; from paper accounting practices and from fraud losses associated with bad checks. Lastly, similar restrictions and redemption guidelines are used, that already steer customers towards excess capacity specials sold at lower cash prices. Examples include:

• No Friday or Saturday nights • New members only
• Only available on the Internet • Not good with other special offers
• Limit one per customer • Off-season special
• One free with one paid • Available between 4:00 – 6:00 p.m.

If one day, Business Dollars are as fungible as U.S. dollars —and hopefully more fungible than frequent flyer miles —then most such restrictions will disappear, because the two financial instruments will be interchangeable. And why not? When new money solves the economic problems that its predecessor could not, eventually it climbs to the top of the wallet or purse as the pre-ferred currency. This is true, whether we are discussing the convenience and versatility of paper money over gold, or the many advantages of electronic commerce over paper.

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