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Earn Cash While Selling on Trade
- Some businesses can also generate cash as a by-product of earning Trade Dollars. Motels are a good example of this process.
- The mortgage, insurance and utilities on a motel are fixed, whether the motel is fully occupied or nearly empty. The incremental cost of filling an unused room is minimal. To pay for the extra house cleaning, laundry, and complimentary items such as soaps and shampoos, it costs about $20 per room night.
- But just think about how much cash revenue that twenty dollars can generate. The people staying in that room order room service, buy from the vending machine, magazines and gifts from the gift shop and eat in the restaurant. It's even more lucrative if it is a resort. When a destination resort offers sports, tours and entertainment, visitors spend a lot of money on peripherals.
- The hotel has generated cash it would not have had while producing full value for the room in Trade Dollars. In addition to the new cash flow, the hotel can use the Trade Dollars to offset cash expenses.