B2P investments and profits

At B2P currencies , the basic idea is that every company planning to put a good in the market, can finance his operations by paying to his providers with a currency issued by the company as a share in the future goods.

Breach of contract

If they issue more money than goods they actually produce and this money represents, the enterprise will be pursued by law. Customers can claim that they came with the money and there was no goods in the stores.

Investments and profits

The consequence is that investments and profits have to be paid with the company B2P currency as well. Investments and profits have to be paid at the beginning of the cycle, and not after the annual sales cycle. On perishable goods, after a certain date, the B2P currency is worth nothing. The goods are rotten.

How it works:

Buy goods

To buy variable goods and services, like maintenance, raw materials or labor, that is, to pay the exploitation costs, they use their own B2P currency to pay their providers. The providers will use this money to buy themselves the goods this enterprise is producing or will put it into the exchange market for those who want the goods this enterprise is producing.

Buy other currencies

1. To invest in capital goods, they buy the capital goods manufacturers money, in order to pay the mortgages or leasing's. The capital goods manufacturers owners and employees will need the perishable goods money for their daily consumption of perishable goods.
2. Finally, to pay their shareholders profit or the managers the bonus, they buy in the exchange market any global luxury money that can be spend at a nice holiday in the Caribean.

If sales go wrong

Sales can go wrong from the beginning to the end:

• It can go wrong at the beginning, if there is no interest at accepting this enterprise B2P currency , because there is no interest in the product. It means that part of the currency is not circulated. But there is another part in circulation, and those that have accepted the currency expect a percentage share of a given stated total production. At least the goods represented in the circulating money have to be produced. To adjust accounts, the most rigid cost is mortgages, the exploitation costs are partly flexible, and profits and bonus can always be deleted. Its up to the management to decide how to proceed. But its fair to assume that the company managers do not deserve a very high bonus.
• It can go wrong at the end. Customers that were eager to acquire the enterprise B2P currency at the beginning, enthusiastic about your promised products, at showing up at the shop, or likely before, were disappointed by the product, were not able to get rid of the currency in the exchange market, and they preferred not to claim the product. There is no immediate damage for the enterprise. All has been paid, just part of the product will go to the bin. But it is a terrible warning. These customers in all probability will not accept the enterprise B2P currency next year. The enterprise should take immediate reaction at reducing production next year and make some investments to improve quality, all meaning that shareholders and managers will be punished with low chances to get any profit or bonus next year.