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.
