Benefit of Bartering - by Eddy Anton

I could write a book about this subject.  Recently, I was filming an infomercial and educational package about bartering and I was asked by the director to give the three main benefits of bartering.  By the tenth or eleventh take I screamed "THERE IS ONLY ONE BENEFIT TO BARTERING (insert foul language here), MORE SALES".  Obviously, I over simplify my answer to the director.  So, it got me thinking about this issue. 

After some soul searching, this is my attempt to codify some of the benefits of using barter or trade.

CONSERVE CASH:  Barter helps you and your business conserve cash by using trade dollars to obtain what you want or need.  Trade dollars are credited to a trade account in the trade/barter exchange, which can then be spent on any item or service desired from within the network.

INCREASE EXISTING BUSINESS:  The barter exchange markets your business to other member businesses in your member directory, through weekly email blasts and through their Trade Advisers. Your business gets incremental sales from buyers looking for barter opportunities within the network.  You can improve cash flow by increasing sales and reducing costs. Participating in an exchange does both! Trade enables you to pay for the products and services you need with what you have. When you hire a contractor, paint your office, or buy office supplies with Trade Dollars, you conserve your cash to pay for other expenses. And, when you purchase using Trade Dollars, you pay for it with revenue from new sales - sales that you probably would never have had.

CREATE NEW BUSINESS: Every business owner has excess inventory, production, capacity or appointment time. That unscheduled appointment today has zero value tomorrow. When you join a exchange, it provides you with new business to put your excess to use in profitable ways. They accomplish this, by matching your product or service with businesses looking to purchase them on trade.   “Word of mouth” is the number one source of advertising for small businesses and if you do a good job for a exchange member, they will refer their cash-paying friends, customers, family and other businesses to you.  In addition, trade revenue from the incremental sales that the exchange will bring you, will attract more cash customers and build your brand and create new business by allowing you to advertise via television, radio, print, online campaigns, and direct mail.

WHOLESALE BUYING POWER:  With an exchange, the real cost of the goods you purchase on trade is actually the wholesale cost of your Trade Dollars earned. Making sales with built-in profits makes the cost of your purchases more economical on trade.


MOVE INVENTORY AND FILL IDLE INVENTORY TIME:   Trade allows you to improve inventory management.  By converting excess products into valuable goods and services. If you trade, you avoid having to liquidate excess inventory through drastic discounting.  If your small business experiences seasonal markets, trade provides a profitable way to use the inventory on a regular basis.  Using  a trade exchange provides a system to put that excess to use in profitable ways.


EMPLOYEES INCENTIVES: Trading is also a great way to offer bonuses, contest prizes, wellness programs and tickets - all available to you without using cash, and all based on your cost of the incremental business that the exchange has brought you.  For example, by using a trade exchange dentists, you can provide a much appreciated benefit to employees without having to pay cash for it.