EXAMPLE OF DIRECT TRADE

Let’s say you are a florist and you need a DJ for one of your kid’s birthday parties. You find a DJ who is willing to do direct trade and will take $1000 worth of flowers for them DJ’ing your kids party. This type of trade requires you ask people who sometimes, well, don’t think outside of the box. They are used to cash/ immediate payoff in traditional monetary measurements. When you use this type of trade, you are availing yourself to basically getting the stuff you want at your rate of wholesale. If you have a 50% margin in your product/service and you barter away dollar for dollar your product/service towards something you want, the cost involved is what your cost is –your margin- and you are able to get stuff at a substantial discount.