31 May 2016    
Cloudfunding Main Street
    Re: Dairy farmers and farmgate pricing impact    
    Cloudfunding brings Supply and Demand into the Digital Era    

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Productivity in the most economies has remained in an environment that still operates in the 20th Century analogue world with dysfunctional dynamics, while global markets players have taken advantage of digital technology.

The pace that technology has given global markets over the last few decades has highlighted the spiraling difficulty in matching supply with demand using old world commerce mechanics, all while multiple incumbents continue to gain a bigger piece of the pie.

The dilemma that's so transparent for people to see is the disconnection that the dictating markets traders have with the cost of production at the grass roots level, supply chain suppliers have become collateral damage while the world digs its way through debt and over supply, through no fault of the producers  -  applying subsidies and tariffs, and other 'adjustments' to assist trade and industries will always be short term fixes as everyone knows, for industries to survive without relying on tax being re-diverted away from the public sectors is the ultimate goal in having sustainable industries.

Dairy Industry is one of many where the Suppliers can gain control

ComTechX saw this brewing dilemma in commerce between supply and demand, and set out to innovate and bypass the dysfunctional players in the old economy, by developing an economic platform that allows commercial players to take advantage of technology using new dynamics to form part of the new economy, and gain perpetual growth to commerce and productivity  -  this approach takes real time data on a global scale as its mandate rather than relying on historical info, trading manipulation and crystal ball forecasting  -  effectively what the platform does is it beats the current commodity trading regime at their own game without the use of speculative trading.

The current commerce dynamics issues confronting the Dairy industry are similar in a number of other industries across many other countries  -  what ComTechX has developed is an economic ecosystem termed as Cloudfunding, which gives control to the suppliers and their product's selling prices, while the buyers in the supply chain are given a buying price incentive that's too good to refuse.

The Dairy industry benchmark farmgate selling price is recognized at A$0.60 per litre and $6.50 per kg for solid, the Cloudfunding ecosystem is able to set and pay farmers those full selling prices using a global Outsourced Selling process that changes the pricing dynamics to a sell high buy low structure, and gives dairy processors an incentive to pay a much lower price than their usual market price offer  -  buyers still recognize the full selling prices but Cloudfunding offers the low buying price as incentive.

The 'sell high buy low' process flows all the way along the supply chain to the big and small end retailer and their local consumers, the retailer has an incentive to buy from a processor or wholesaler at a much lower buying price, and their local customers can then has the incentive to buy at a maximum $0.40 buying price per litre, much lower than the current buying price of $1.00 per litre.

Cloudfunding gives commerce more balance

Cloudfunding finds an impartial equilibrium in supply and demand that supports scalable productivity in industries by using a much broader buying power than relying on a single buyer  -  it uses the global crowd but in a much more advanced way than the familiar crowdfunding, Cloudfunding re-invents how commerce is fully monetized and payments are globally validated in real time without using the typical financial Capital Investment support from the crowd.

Payments are paid forward, when a processor agrees to buy at the low buying prices, the full $0.60 / lt selling price is released from escrow and immediately available  -  industry prices move higher automatically if global market prices do so but the local selling prices never drop below the listed benchmark  -  Cloudfunding offers a more genuine free open market with the buying prices fluctuating with demand coming from a democratic Global Crowd.

The Outsourced Selling operates similar to outsourced manufacturing but in this instance only the 'selling' process is outsourced to a Global Crowd  -  the obvious benefits are that employment and productivity remains local  -  it applies a debt free financial and economic system that directly generates productivity  -  only now is technology so advanced that such a system is capable of outsourcing the selling process of locally produced products and services on a global scale and be fully paid for before the items are released to the local end buyers.

The Platform's Trade Exchange Market is structured to operate similar to a cash economy, there are no listing fees or payment fees, and importantly it provides a marketplace environment that's more in line with the way free markets need to operate.

Local and national Industry selling prices can be based on local operating costs regardless of fluctuating global prices, if the Global Dairy Trade Price moves higher, then the local industry benchmark moves higher, still benefiting farmers and down stream suppliers  -  each supplier, starting with farmers and growers, remain in control as Outsourced Selling moves along the supply chains.

In the case of exporting products, the global market price is still used for payment by the offshore buyers ( if required by trade agreements ) irregardless of the local full selling prices, which remains for all farmers to receive whether involved in exporting or supplying the domestic market  -  the additional benefit on the local scene is the amount of savings that the industry players can gain with the lower buying prices from the peripheral suppliers, such as diesel fuel suppliers, even electricity, insurance, stock feed, food for families and other types of suppliers in the local economy,

The low buying prices can be flexible, there's even an option for industries and businesses to use Price Demand that begin at the full selling price and cascades down until a buyer takes the price, ideal for sellers wanting a real time competitive demand environment, it's similar to the black friday sales but again the sellers still get the full selling prices.

More details of the Platform's functionality are further below and on the website intro  -

Cloudfunding has debt reversal dynamics

The significance of Outsourced Selling's low buying price is to have a genuine impact on the recovery from debt ( rural debt ), while being an incentive to all players along the supply chains in generating demand that helps build healthy industries  -  with discounting becoming the norm in most retail and supply chain pricing, the low buying pricing acts as a natural defense for the platform sellers against cheap imports or desperate 'race to the bottom' discounting that can happen with end of season or closing down sales.

With record debt, both in domestic and commercial still mounting in most developing countries while productivity is going nowhere, it would be a fair indication that with all the policies put into place in the last few years after the GFC along with all the quantitative easing, it's only exacerbating the problems  -  Cloudfunding cuts to the chase and applies a fully validated free digital financial trading system to drive productivity, while at the same time cuts out adding more debt and starts to reverse the accumulated debt ( more below )

The significance of Cloudfunding is that there is no credit applied and the velocity flow of value is only generated by a perpetual forward motion using fully validated digital capital that has no debt to repay, this means that the financing is completely validated and in position for a product, service, local projects, R&D and infrastructure before it's released, and therefore no debt is carried forward to pay back  -  innovation is what all governments and the world are coming to understand will be the only way to set a solid foundation for the bigger issues coming in the next decades.

Cloudfunding doesn't use or need banks, in fact it doesn't even need the banking financial system to operate, it's fully autonomous and connects economies together in commerce on a global scale, to the extent that it's ubiquitous and can operate from one local region to another in the world, free of fees  -  it sits in a new paradigm and new frontier in global commerce and trade.

Cloudfunding takes advantage of the 'animal instinct' that's universal in all commerce where buyers will always be attracted to the lowest price and sellers will always want the benefit of gaining the top price  -  Cloudfunding has the Platform where both buyers and sellers gain an advantage and find a rare equilibrium in today's supply and demand.

What Cloudfunding does for industries is it takes modern technology that can operate on a real time global scale, a scale that the new generations more fully understand and appreciate, and applies new dynamics to trade and commerce to move past the old commerce dynamics that were structured for a much slower world.

Cloudfunding is able to filter into any industry without any takeover or major upgrade, it's free for any supplier in the supply chain to Outsource the Selling of inventory of any size and have buyers in the supply chain network take advantage of the low buying prices, the benefits and advantages can then be judged against the old traditional dynamics  -  there's no lock-in agreements needed, suppliers can come and go with their inventory by basically controlling their business from their mobile phone.

Cloudfunding is structured for commerce to be the instigator of activity and not be a profiteer in the new economy, it takes a different direction to how value is earned and exchanged between buyers and sellers, and how that value is distributed while still being able to organically expand exponentially  -  the old economy has used banking where money supply was simply created and centrally controlled using predatory actions that kept the commerce players in check through added fees and terms.

Cloudfunding in the new economy is able to use a real time democratic global consensus to generate productivity growth using the Free Digital Capital that's validated and governed by that genuine productivity and is physically restrained globally, it's this scalable productive cycle that gives the commerce players a clear run-way at scaling global productivity  -  to dismiss the power of the global crowd is to ignore what social media did during the Arab Spring and in the changes happening around the world.

Local commerce is now more global

Unlike traditional markets, Cloudfunding incentivizes the Global Crowd to reach the selling prices consistently and have the full payment ready to be released from escrow on delivery without needing trading terms, as compared to typical commerce where the buyer needs to finance the full purchase through credit terms, loans or cash and expect trading terms over weeks or months.

In Cloudfunding the quantity of the produce is listed at the full selling price for the Outsourced Selling process, this is where the global crowd competes using the Free Digital Capital in a unique bidding process that on completion escrows the full selling value before the product deals are even released to local buyers, at the low buying prices  -  there are ample processors in Australia to have strong competition to buy from farmers  -  quantities to buy or sell are able to be generated with the global crowd prior to products being available, it only requires sellers to release the quantity immediately available to buy or for the buyers to pre- buy a quantity and release the quantity they are ready to buy, all in real time.

Dynamics of commerce are changed with the full selling prices being monetized via the overall global market activity generated by the global crowd  -  all buyers along the supply chain, from the first buyer to the end consumer, only pay a 'fractional' value to legitimize the sale.

Local activity creates a defendable local free economic zone

A major difference the platform creates is the amount of local economic activity generated within the region when big and small local businesses use the platform to sell their products and services in the same 'sell high and buy low' way  -  the commerce between businesses and local buyers wanting to take advantage of the lower prices, forms a digital free economic zone where businesses can build a defense against outside competition.

Key benefits with Cloudfunding is how Outsourced Selling creates the velocity in productivity within a region and keeps payments and the cash flow value local  -  central to the digital free economic zone is the Direct Foreign Decentralized Capital ( DFDC ) that draws Foreign Capital Investment into a region, similar to FDI, except without the typical top down bureaucracy, and it's free with Cloudfunding.

The Platform operates with all types of commodities from milk, crops, fuels, if fact any product or service that can be priced to sell, it can handle any size volume in a consistent flow, even in industries like Dairy when the quantity of farmgate milk produced is an unknown factor until it's ready for pickup.

The Global Crowd is not restricted to external users, it can include the farmers and families who have a great self interest ( without conflict of interest ) in being part of generating deals using the free working capital ( more details below ) in strategies to generate product sales that have high selling prices for their own industry, and in doing so helps to increase the incentive for the next buyers in the supply chain  -  the Outsourced Selling process and the Trade Exchange Market platform are able to generate and handle millions of litres or units across multiple industries with all type of product or service simultaneously.

Collateral damage spreads wide

With all the varying reasons supply and demand is used for the benefit of buyers or sellers where there's usually a dominator and a loser, it may look contained between the immediate players but it spreads outward through the lack of value circulating in the local region of the sellers and the local economy.

The one piece of the puzzle that's swept to the side as collateral damage for the sake of a free market is the government's expected tax revenue from products and services that gets lost to discounting  -  just by taking a simple calculation of the amount of discounting that happens in a local region, even a country, the volume of discounting when added together and calculate the tax not collected, it would be enough to correct most deficits within a short couple of years.

Cloudfunding solves that issue by always selling at the full selling prices where the tax is applied, the seller is better for it and the buyer gets the discounted value to help their buying power with more to spread to other purchases  -  there's no rules in commerce that says that there needs to be '1 to 1' parity between the selling and buying prices  -  it's not rocket science but it will be innovation in technology that will change the status quo.

ComTechX the industry

ComTechX is a new industry, formed with Commerce and Technology, and Cloudfunding is the overall economic platform that provides the changes to supply and demand that can scale and keep pace with 21st Century productivity.

As a guide to the scale that Cloudfunding is able to operate at, one only needs to see how large the paid digital advertising industry is becoming being able to be distributed globally both in displaying of images and in collecting incoming payments and distributing outgoing payments to the networks involved.

Cloudfunding simplifies that business model by reversing the role paid advertising has in commerce by making advertising free and validating it against real commercial productivity  -  the extent of the size of Cloudfunding just doesn't involve validating the small percentage that paid advertising is of a product's selling price, it's the full selling price of the complete listed inventory that's validated as Free Digital Capital and that volume grows only at the pace of productivity.

With Cloudfunding the crowd uses the Free Digital Capital, as free working capital, which's used in strategies to help drive sales and productivity for the business or entrepreneur  -  while the crowd earns the free working capital, there're sophisticated algorithms that validate the Free Digital Capital value against genuine productivity, which happens in real time commerce around the world.

Free Digital Capital is a neutral global trading value that's compared in real time with all global currencies, unlike in banking finance where money is created for credit and loaned out at a cost  -  Cloudfunding is able to release and validate the neutral trading value against real time productivity on a global scale, without incurring fees, and importantly it never needs to be paid back, ever.

The crowd is global more so than typical crowd involvement because the Free Digital Capital is able to be validated to any global location without any border restrictions.

The Platform is structured as a NGO commercial enterprise to operate as a self sustaining neutral entity, primarily to generate economic growth in global locations.


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