DUAL-CURRENCY TRANSACTIONS: A PATH TO HIGHER PROFITS

   REPLACE DISCOUNTS WITH PROFITS

+1 (775) 852-6280

    1. A different formula to calculate the actual cost, the I.C. (Incremental Cost) Factor, of outsourcing the sale of hotel

        and F&B services, allowing sellers to determine, ahead of time, the profit margin on the transaction.

    2. A trade system with its private currency, resulting in sellers receiving full payment, in cash, at rack rates, on the

        business generated.

​    3. A sales methodology, developed over decades, proprietary and capable of generating cradle-to-grave transactions

        with a sales force that scales at a fast rate.  

CASE STUDY: A restaurant with 1M in gross sales, 900K in expenses and 100K in profit, contracts with an Outsourced Service Provider (OSP), a restaurant delivery service which, over the fiscal period, brings $50,000 in delivery business. The service pays 75% of the menu prices and advertises the restaurant’s menu, takes the calls, orders the meals, picks them up and delivers them.  The OSP operation has no effect, nor cost, on normal operations except for the food cost, and to-go items, calculated at 25% of the tab. The restaurant realizes a net profit of $25,000 (50%) on 50K in business.

MANUFACTURING

​​​Projects Completed

The Company operates as a, third-party, sales contractor developing teams, specifically, for each project undertaken. For a partial list of projects completed.   MORE > >

Reno, Nevada  89521

Like its Swiss counterpart, the American Trade System and the private currency, the ATS Dollar, make for a self-contained, private, economic, finance, credit and monetary system that delivers spectacular results for clients and well-paid sales positions. It contributes to the economy by monetizing a portion of the unused and unsold inventory and capacity of qualified companies.   

OUTSOURCED SERVICE PROVIDERS (OSP):
A NEW GENERATION of RESELLERS

The Hawk Group brings to U.S. companies financial services similar to the ones provided in  Switzerland by the WIR Bank and Trade System, providing services to the Hospitality, Construction, Manufacturing, Retail and Services sectors. The model brings 3 innovations: 

CONSTRUCTION

PROFESSIONAL SERVICES

Ownership and Management

The Principals of the Hawk Group are Ezio and Rebecca Valentini. Hawk has undertaken projects in financial services, real estate, hospitality and call centers while developing, proprietary, sales methodologies that deliver results unimaginable using traditional methods.     MORE >>






​100M is estimated assuming 100% of the facility is used 100% of the time at rack rates. 50M is the actual cash revenue. The Trade Plan calls for 2.5M in hotel services to be purchased for 1.25M in cash and 1.25M in ATS Dollars, which are used to replace cash expenditures, resulting in additional profits.

Innovations include a unique financial model, based on the I.C. Factor (Incremental Cost) and the use of a private currency, and a new, ground-braking, sales and marketing methodology.   

A line of credit, in WIR Francs, is extended with an agreement calling for:

We are a well-established, cloud-based, B2B, Outsourced Services Provider (OSP), a sales organization with European and U.S. operations. We provide services to the Hospitality, Construction, Manufacturing, Retail and Professional Services sectors and create large corporate profits for qualified companies.

A Master Agreement is executed, quantifying the I.C. Factor (40%) and the Trade Budget ($2,500,000), to be done for 50% cash ($1.25M) and 50% ATS Dollars (1.25M), our trade currency. During the fiscal period, our brokers provide the hotel with  proposals  that  result in  the generation of enough dual-currency  sales  to acquire 1,250,000 ATS Dollars, while providing similar proposals to generate enough dual-currency purchases to spend the ATS Dollars, generating the predetermined profit. 

The HAWK PROJECT


In a cash-only environment, the seller can only use discounts to entice a sale. In a dual-currency environment the buyer uses less cash to purchase and the seller receives full payment, in cash, for its product or service. 

Knowing the I.C. Factor allows the hotel’s decision-makers to take  steps, including the  use of the private currency, to increase profits.

A New, Technology-Powered, Sales Channel

The Hawk Group

ABC HOTEL

At the end of the fiscal period the hotel will have sold $2,500,000 in services at a 60% profit margin, generating $1,500,000 in additional net profit.   A construction company with 100M in sales, an I.C. Factor of 45% and 5M in Trade Budget generates $2,750,000 in net profit annually. A restaurant with 1M in annual sales, 900K in expenses and 100K in profit with a 40% I.C. Factor and a $50,000 Trade Budget, will deliver $30,000 in net profit.   

The additional business is not going to increase debt service, payroll, leases, insurance, advertising, etc. Those costs are included in the 45M in cash expenses. The I.C. Factor contains only costs directly incurred providing the additional services, which can be below 10%. For the purpose of this presentation and keeping in mind that some of the services will include the cost of food and beverage, franchise and other fees, we will use 25% as the I.C. Factor. A 10% commission is added and 5% for the System’s charges for a total of 40%, therefore, the cost of delivering $2,500,000 in hotel services, is $1,000,000.

The line of credit to be secured.

WIR Francs to be used to repay the principal on the loan. 
Interest payments to be made, in cash, while the credit line is in use.   

Expedia, et al, called On-line Travel Agencies (OTAs), are also Outsourced Service Providers (OSPs). They pioneered the model which evolved with restaurant delivery services, as OSPs and resellers of restaurant product. We are the third embodiment and provide services, in addition to Hospitality, to Construction, Manufacturing, Retail and Services.  Based on a financial concept currently unexploited in the U.S., however, used in Switzerland where our sales team identifies companies with specific profiles and, as OSPs and resellers, generate highly profitable transactions.

​REPLACE DISCOUNTS

WITH PROFITS

HOSPITALITY

ABC Hotel with 50M in sales, 45M in expenses and 5M in profit. For the next fiscal period, the hotel becomes a member in the Trade System by providing the operation’s current metrics:  1) Income from corporate entities (50M), exclusive of revenue from consumers and not-for-profits; 2) The business’ estimated unused and unsold capacity (50M);  3) The I.C. Factor (40%). From the data, a Trade Budget of 2.5M (5% of 50M) is extrapolated, representing the amount of services the System will purchase from the hotel during the next fiscal period.

All rights reserved.

Copyright 2017 © Hawk Group, LLC 

RESTAURANT SALES at 50% PROFIT MARGIN

Corporate History 

The Hawk Group operates internationally and, in the U.S., has formed and operated 26 companies. The Hawk Group is debt-free, profitable and has a spotless record.   MORE >>

Companies must:

The I.C. FACTOR and TRADE BUDGET

The I.C. Factor is expressed in a percentage and refers to the actual, real, cost a company incurs when outsourcing sales to an OSP with its own marketing and sales mechanism. It’s the “break-even point” and, across the industries, ranges between 0% and 35%.

Hawk Group

RETAIL COMMERCE

WIR and the AMERICAN TRADE SYSTEM (ATS)

The American Trade System (ATS), a subsidiary of the Hawk Group, was created using the WIR System as a model. In 1934, 15 Swiss businesses, including 3 hotels, formed the WIR Trade System, designed to issue and manage a private form of money, the WIR Franc, used, in combination with Swiss Francs, to generate dual-currency buying and selling transactions between members.

The concept is already in wide use in the hotel industry where online resellers, OSPs like Expedia and Priceline, market unsold hotel inventory at deep discounts. Hotels use the IC Factor to manage, and extract value, from a vanishing asset: the unused and unsold hotel room. We also use the IC Factor, however, in our application, through the use of the private currency, the discounts are eliminated and the unused capacity is sold, for cash, at high profit margins.

Be profitable and conduct a certain amount of corporate business.
Have a certain amount of unused and unsold capacity or inventory.
Be able to generate a certain amount of additional business at a low cost.

WIR original members brought clients and vendors to the System and, today, 20% of all Swiss businesses are members, 60,000 in total, generating 6.5 billion dollars in volume. There are 100s of Swiss hotels and restaurants as members and the current aggregate amount of credit extended by the System is $1,355,000,000.  

For hotels and restaurants, it is important to be aware of the I.C. (Incremental Cost) Factor, the true cost of outsourcing the sale of unused and unsold capacity, therefore, the seller can predetermine the exact profit generated by each transaction.       
  

The I.C. (Incremental Cost) FACTOR or BREAK-EVEN POINT