Trading Guidelines

Edinburgh LETS Currency & Value

The unit of currency used by the Edinburgh LETS group is the Reekie. For the purposes of calculating costs, one reekie is roughly equal to one pound sterling. The general rule of thumb is that members charge and pay about R5 per hour for most services. Deciding on value in Reekies, however, is entirely up to you and your partners in trade. If possible, it is usually best (and easiest!) to decide on a cost before starting a trade.

Covering your Costs in £sterling:

When arranging a trade, you are free to arrange trade in part £'s and part reekies if this is acceptable to both parties. You might want to do this in a case where one party has incurred expenses in £'s (like ingredients for baking, or construction materials). You only need to put the LETS part of your trade through the system.

The Ethics of LETS

Many people ask "what if I go into debt?" Actually, that's not a problem, and there is no interest charges on negative account balances. Your account begins at zero, and for one account to move up, another must move down. That means that, at any given time, about half the members in a LETS group will have negative balances. As long as your account is active, and you are trading your goods or services with others, a negative balance represents a committment to trade, and is an essential feature of the system.

LETS Account Balances Are Not a Secret.

Now that we have an interactive website this information is available to members when logged on. Follow the Exchanges link to find out more. If members see that someone has a large negative or positive balance, they will try to trade with this person. "Money was made round to go 'round." Reekie cheques are generally rectangular, but this old expression applies more than ever to LETS systems. Large account balances, negative or positive, mean that that currency isn't being circulated. A large positive balance is as much a problem as a large negative one.

What if Someone Goes Far into Debt and Doesn't Trade Anything Back?

Believe it or not, this hasn't been a big problem. People who use LETS care about the community they have entered into, and want to contribute their fair share. Were a member to have accumulated a large negative balance without reciprocal trading, the committee would first ask that other members try to trade with that person to help them balance their trading. In exceptional cases, the treasurer has the power to suspend a member's account.

LETS is relaxed!

In general, LETS functions on trust and on the basis of our reputations and reliability as traders. Most members do their work within the LETS system on a part-time, relaxed basis. It is important to be assertive when asking for LETS appointments to get work done, but do recognise that people can be busy and not have free time immediately, so bookings can be made at a mutually suitable time.

Determining Value in LETS

Here is what Michael Linton, LETS founder, has to say about deciding value in LETSystems:
"Using the pound sterling as a convenient measure, prices in the sterling economy provide a starting point. But valuations in a 'local' economy tend to differ from those outside. Activities which are traditionally low-paid tend to be rewarded more generously. On the other hand, activities which are conventionally more highly-paid tend to trade at a lower prices. This is a function of the way the LETSystem operates. The differences result from using a 'money' which is not in short supply and which is only acceptable to other users of the system.
"Money does not value people, people value each other. But, when money is scarce, valuations become distorted . For example, I want to give you as little money as possible, for as much as I can get from you. By using a 'money' that is not scarce, people are able to value each other more appropriately."
The above quote was taken from the amazing and very thorough website that Michael Linton has put together about the philosophy and benefits of LETS worldwide. You can read his writings online at www.gmlets.u-net.com.

Transacting in Reekies

We have some cheque templates which new members receive. You are more than welcome to photocopy these for your own use, or to design your own! If you think of a good design, please send it to us. Please include the membership numbers of both members on Reekie cheques, as this makes the Treasurer's job a lot easier! Also, please try to send your cheques to the treasurer as soon as possible after the trade, so that records can be kept up-to-date and accurate. Cheques become invalid if not passed on to the treasurer after 14 months. To pay someone in Reekies, you can mail your cheques to Edinburgh LETS Treasurer c/o Peace and Justice Resource Centre, St. John's Church, Princes St. Edinburgh. EH2 4BJ Alternatively, now that we have an interactive website, you may carry out the transaction yourself online - follow the Exchanges link to do this in real time. There is no need to send a paper cheque if you have done the transaction online.

What do people trade?

This is a tough question for many new members. But don't worry! People trade all kinds of crazy things - basically, whatever skills or goods they have to offer. If you have trouble thinking of what you have to offer, think of things you don't mind doing which other people hate - like ironing, mending clothes or digging a garden. Maybe you have some extra books, tools or furniture cluttering up your house which might be useful to someone else. To help you think of some services or goods you have to offer, see our "inspiration list".