Correct.

Our pricing GPS works exactly like a car’s GPS in that you have to give it a goal and let it do the rest – provide the best route or in our case location that gets you to your goal or destination.

The Goalseeker GPS or Global Pricing/Profit System seeks the biggest prices for exporters and the smallest prices for importers. As with your car’s GPS, you don't need to know what's under your global positioning system’s bonnet to drive it.

Okay. Basically Goalseeker prices your three commodities …

This surprises a lot of businesses as well – three commodities? Let me explain those the three – product, currency and time.

The first is your product itself, which you fully understand. You can sell it in Australia or export it.

The second commodity is currency. You exchange your product for a pile of money – Australian money, Japanese money, British money and so on. You no longer have your commodity. Instead you have a pile of cash. You can now sell any pile of Japanese cash, Indian cash et cetera into Australian cash at the going rate of exchange.

The third commodity is time. Time is valuable and if there is a time gap between selling your product and settling payment, it too can be sold.

After selling all three you end up with your Australian dollar pile of cash

I think three examples might be better - one for each commodity. Other Goalseeker podcasts provide more details of each of these cases, but I'll give you an overview.

Firstly, I’ll use the flower grower to illustrate currency value.

Secondly, for time value I will use the case of the Sydney real estate agent.

Finally, and while you don't really need an example of fluctuations in the value of your own commodity, economics students are taught a model called “ the pig cycle” which explains commodity price volatility very well.

OK. Our flower grower is in Queensland and sold A$100,000 of flowers in the Brisbane market for a $20,000 cash profit. In Japan the price for their flowers at that time would have been 10,000,000 Yen. In fact, throughout this example the price in Japan is always 10 million Yen and in Australia always A$100,000.

At the start of this business example the exchange rate was 100 yen per Australian Dollar; so if the flower grower sold the 10,000,000 Yen it would have yielded 100,000 Australian dollars. This was the same revenue as they got in Australia so while they could also make A$20,000 profit in Japan, what's the point?

However, over the next year the Yen/Australian Dollar exchange rate was highly volatile. When the next crop of flowers was available nothing had changed in terms of growing costs or the revenue available in both Australian and Japan; the only thing that changed in this yoyo world of currency values was the amount of Yen needed to buy an Australian Dollar. In this case the Yen had risen in value (and therefore the Australian Dollar has fallen) and the flower grower only had to give up 60 yen to get one Australian dollar. This increases cash revenue to A$ 260,666 per 10 million Yen. Because production costs are unchanged the previous cash profit of 20,000 has been increased by A$60,666 to a total of 86,666 which is not too bad; indeed, it is a profit increase of 430%

The estate agent suggested to the American that he may prefer to change the sale from Australian dollars to American dollars so that his costs were now fixed in US Dollars. the current price of the American dollar in Australian terms was $0.70 so one Australian dollar equalled 70 US cents; at that exchange rate AS10 million equalled US$ 7 million.

The American company agreed; it gets rid of the risk of exchange rate volatility and any uncertainty as to the cost of the building.

The Real Estate agent immediately went to a bank and asks the bank: “If I give you 7 US 7 million in 12 months’ time, how many Australian Dollars will you give me? Under the contract they were making 10,000,000. The bank offered A$10,165,000. The extra A$165,000 is years’ time value for $US 7 million.

The Exchange agent was previously on a Commission of 1%, or A$100,000. If they keep the whole of the time value, they would increase that to A$265,000 – which is not bad.

As most economics students can tell you the pig cycle is where supply and demand interact to trigger volatility in both. So in the case of a drought or bushfires or viruses, the price of pigs and other products would rise and as a result pig prices would also rise. At higher prices pig farming would increase because you cannot produce pigs overnight. Eventually the new suppliers would flood the market, triggering another farmer exodus.

Industries which suffer from pig cycles are very common and occur in almost every country. Volatility of commodity prices follows (and remember that currencies are also commodities).

Because Goalseeker is a price list. It is a profit menu which provides you with current Australian dollar profits anywhere in the world. These will be continually changing it's up to you to choose from those opportunities.