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IntroductionEdit

Profit in the capitalist system is based on the goal of differential accumulation, the accumulation of capital faster than the overall system of capitalism accumulates on average. Profit in the idealized market system is value added to something before it is traded, or the cost of reproducing oneself.

A reduction in the cost of reproduction would result in a reduction in the need for profit. Goods, possibly including those used for reproduction, are purchased at reduced cost from outside an early-stage VIAAC. The reduced need to keep up with capitalization, and hence the need for profit, allows the reduction of profit margins for the internal economy of the VIAAC.

Zero-Profit as a Transition StrategyEdit

Part of a VIAAC's task is to eliminate the need for monetary exchanges, first internally, then externally. Zero-profit is a step in this process; step one can be considered "falling profit", where the VIAAC uses crowdfunding and alternative economy techniques to reduce its monetary costs until it has reached a state where profits are not necessary to cover or reduce costs. The end point of this step is considered zero-profit.

Advantages Edit

  • Due to its use of monetary accounting, it works easily within the current system.
  • The use of money, as well as the ease of explaining the idea, makes it appealing to more people.
  • Allows the use of existing business models with minor modifications.

DisadvantagesEdit

  • May be difficult in practice for organizations to stop taking profits, leading to perpetual "marginal profit".
  • Subject to market competition from profit-driven entities.

Tactics for Zero-ProfitEdit

One of the most universal yet universally overlooked properties of capitalist markets is the complete opacity of the costs of goods and services. This may be responsible for much of the ability of businesses to achieve high profit margins: Not everyone would be willing to pay $20 for something they know only costs $2 to make, unless such a high profit margin was really a necessity for the seller and not just the accumulation of capital or profligate wealth.

Transparent Pricing Edit

By using transparent pricing (here is an example of what that means), buyers can see exactly what they're paying for. Most people will choose goods and services that are priced at lower profit margins. Transparent pricing can be incorporated into the VIAAC's flow network to look at costs and profits through a whole supply chain.

See AlsoEdit

  • Cost the limit of price, a similar concept by Josiah Warren.
  • Social businesses are similar in their principles and goals to zero-profit organizations. Zero-profit can work both formally and informally, through either structured organizations or a series of agreements among different parties.