Apples vs. Apples
How to determine the cash equivalent of your IMS dollars
When making a purchase with your IMS dollars, you often pay prices slightly higher than a competitor’s cash discount price. It is important to be able to determine the real cash equivalent of your IMS dollars to be able to “weigh” the buying decision.
The chart below allows you to quickly figure the actual cash cost of merchandise and services purchased through the IMS payment system using your gross profit margin (GPM) as the discount you receive on those purchases. Here’s how to use the chart:
- Determine your gross profit margin (GPM), subtract the cost of the IMS service fees on purchases. If your GPM is 50% and the service fees are 13% cash, you will realize a barter profit margin (BPM) of 37% on a typical sale through IMS.
- Find the dollar amount of your purchase in the left-hand column, i.e., $400. Read across the top column to find your GPM or BPM. In the 35% column, a $400 IMS purchase actually costs you around $260 in cash.
To be a smart trader, in advance of purchasing use this method to determine when a purchase through IMS is a profitable transaction. Nine times out of ten, the discount earned by you on IMS sales will offer you a better savings than the discounted cash price.
Categories
Latest Posts
Top Four Trades of November 2024
At the beginning of each new month, we go back and see what the Top 4 Trades were from the previous month. This helps us understand what our clients are looking for and how trade is supporting them in their daily lives and endeavors.
4 Ways to Help A Charity without Spending Cash
As a company that strives to save your business cash, we are also a company that wants to give back to the community. We wanted to let you know that there are ways you can give back, both as a business and in your personal life, when your financial resources are limited.
Top Four Trades of October 2024
At the beginning of each new month, we go back and see what the Top 4 Trades were from the previous month. This helps us understand what our clients are looking for and how trade is supporting them in their daily lives and endeavors.
Top Four Trades of September 2024
At the beginning of each new month, we go back and see what the Top 4 Trades were from the previous month. This helps us understand what our clients are looking for and how trade is supporting them in their daily lives and endeavors.
Things for a Perfect Staycation
Are you getting that itch, that urge, that NEED to travel again? But you are not ready to make a big trip commitment? We at the IMS Travel Department suggest a staycation! Here are a few elements to consider when planning yours...