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Using BizX

BizX Economics 101: Saving Cash and Getting Great Deals

December 24, 2014 | Written by Matt Beuschlein

There are a lot of advantages to being a part of the BizX community, but one that we want to highlight today is the great economics of BizX, and how it grows top line revenue, while saving your cash and providing a great discount on the goods and services that your business (or yourself) needs.

As you know, your input to the BizX community is not cash, but, your product or service. Maybe you are a restaurant that has a few tables to fill,  a dentist with some unfilled appointments or a retailer who would like to sell more inventory.

This capacity or inventory ties up cash and by putting it into the BizX marketplace you are able to “monetize” it for other things that you or your business needs.  Because you can sell it for full price on the marketplace, you are leaving your profit margin intact and effectively getting a big discount on everything you buy.

How does that work? Here’s a chart that breaks it down:


The illustration compares the impact on your bank account of buying an item for $10,000 in cash vs. buying that same item using BizX.

The cash side of the equation is easy – you write a check for $10,000 and you are $10,000 poorer.

The BizX side is more interesting.

First off, you get new sales because your inventory is sold for regular price to a loyal  and motivated group of business owners like you.  BizX members like to buy from BizX members. That’s $10,000 in new revenue. Nice!

Now when you need to spend some money on your business, you turn again to the marketplace.  Perhaps you need $1,000 in printing, $2,000 in advertising, $5,000 in web design, etc. That totals  $10,000 and rather than writing checks, you pay with BizX.

Remember the inventory we sold  to earn the $10,000? It did not cost you $10,000.  In business there are fixed costs and variable costs and inventory is a variable cost known to accountants as cost of goods sold (COGS).  In our example, here, the COGS are 40% of the total, or $4,000.

All told, the $10,000 item you bought cost you $5,200 in US dollars.  You saved $4,800 and got $10,000 worth of new top line sales, making BizX an amazing business efficiency tool.

BizX is designed to help improve your business and your life and getting the items you need with a minimal impact to your cash flow is one way we do that.

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