Posts Tagged ‘Benefits’
Benefits of Barter

Businesses large and small choose to barter in order to gain specific benefits

Retail Trade

  • New sales and customers
  • Increased buying power
  • Conservation of cash flow
  • Alternative financing
  • Enhanced quality of life

Corporate Barter

  • Convert slow moving inventory into current receivables
  • Put surplus production or capacity to use
  • Increase market share with low cash investment

International Countertrade

  • hard currency
  • balance of trade
  • new markets
  • manufacturing capabilities
  • prices of export goods
 
Turn Trade Dollars into Cash

Virtually every trade exchange member regularly pays cash for something that could be bought on trade, which can then be resold for cash. If you can’t find it yourself, your trade broker should be happy to assist you.

For example, one of our clients is a magazine. One of its major expenses is color separations. We found another business that does separations and signed them up specifically for the magazine client.

The pre-press company does the separations and film on trade, and the magazine charges cash to its advertisers. With the help of a creative broker, the magazine now turns its Trade Dollars directly into cash.

The separations were an established part of the magazine’s fixed cost, so it was fairly simple to recognize the barter opportunity. Creative traders can also develop new product lines or new ways of doing business that turn Trade Dollars into cash dollars.

For example, a parking garage teamed up with an oil change and auto detailing company. Parking customers find it convenient to drop their cars off and not waste time on minor maintenance. The parking garage pays for the work in trade, then charges cash to its customers.

With the help of creative trading, the garage owner found a way to offer a new service and generate a new source of cash flow funded completely on barter.

There are numerous examples of how businesses can turn trade dollars earned from new sales to new customers into cash sales to customers that aren’t members of the barter exchange. A lawn maintenance company can use trade dollars to purchase plant material and sod on trade. An auto repair company can use trade dollars to buy auto parts on trade that can be sold for cash.

With just a little creative thinking, the possibilities of using barter to expand a business and improve the bottom line are endless.