Posts Tagged ‘Barter’
Earn Cash While Selling on Trade
Written by BarterPro
Saturday, 05 December 2009 19:24
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Many businesses can also generate cash as a by-product of earning Trade Dollars. Hotels and resorts are a good example of this process.

The mortgage, insurance and utilities on a hotel are fixed, whether the hotel is fully occupied or nearly empty. The incremental cost of filling an unused room is minimal. To pay for the extra house cleaning, laundry, and complimentary items such as soaps and shampoos, it costs about $20 per room night.

But just think about how much cash revenue that twenty dollars can generate. The people staying in that room order room service, buy sodas from the machine, magazines and gifts from the gift shop and eat in the restaurant. It’s even more lucrative if it is a resort. When a destination resort offers sports, tours and entertainment, visitors spend a lot of money on peripherals.

The hotel has generated cash it would not have had while producing full value for the room in Trade Dollars. In addition to the new cash flow, the hotel can use the Trade Dollars it earned from selling excess unsold inventory to offset cash expenses.

There are many other types of companies that can also generate new cash sales from participating in a barter exchange. These include, auto repair facilities that also sell vehicles, computer repair companies that sell computers and HVAC service companies that sell equipment. The companies can offer their repair and maintenance services on trade and also market vehicles, computers and equipment to these new customers to generate new cash sales.

 
Barter for Advertising
Written by BarterPro
Saturday, 14 November 2009 22:15
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Advertising is the best way to use Trade Dollars to attract cash business. Advertising media, including radio, television, magazines, newspapers, billboards, and direct mail, are all available on trade. After all, there’s no way to store advertising media and sell it later, so media companies welcome trade.

If a minute of available advertising time passes at a radio station without an advertiser buying it, that minute is lost forever. It can’t be put back on the shelf and sold tomorrow. The same is true in various ways for all other advertising media.

Bartered advertising is very affordable, particularly since your Trade Dollar income generally represents new business. This means the cost basis in your bartered advertising dollars is very low.

For example, a restaurant may have food costs representing 30 percent of the price of a meal. Since barter represents new business the restaurant would have been unlikely to attract, the actual cash cost of those Trade Dollars is 30 cents on the dollar. There is no additional cost in rent, electricity, insurance, payroll, etc. to service the additional business. The only expense is the incremental cost of the food.

Using Trade Dollars, the restaurant can buy advertising to bring in new cash business for less than a third of the regular cash cost. And advertising is a readily available barter commodity, one that represents an immediate opportunity to generate new cash business. In the example above, the restaurant has tripled the purchasing power of its actual cash cost.

Not everyone recognizes the opportunities barter represents, but anyone can learn. It just takes some creative minds and exposure to new ideas to fit barter into your every day way of doing business.
 
Quotes about Barter
Written by BarterPro
Sunday, 09 November 2008 20:14
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“If I had my life to live over again, I would elect to be a trader of goods rather than a student of science. I think barter is a noble thing.”
- Albert Einstein   

“There is no reason products and services could not be swapped directly by consumers and producers through a system of direct exchange–essentially a massive barter economy. All it requires is some commonly used unit of account and adequate computing power to make sure all transactions could be settled immediately. People would pay each other electronically, without the payment being routed through anything that we would currently recognize as a bank. Central banks in their present form would no longer exist–nor would money.” 
- Mervyn King – Governor of the Bank of England