Barter: An Old Concept for the New Age
Businesses are constantly looking for new ways to attract more customers and improve sales. Ironically, more and more businesses are realizing that the best way to do this is by using an “old” form of business called barter. Before the invention of money, ancient civilizations thrived on the concept of bartering. “What is bartering?” you ask. Simply put, bartering is the trading of one product or service for another. There is no exchange of cash. Any business owner or professional who has a product or service to offer can barter. The higher the demand for a product or service and the more limited the supply, the more opportunities you will have to trade for products or services you want or need. In this article, I will discuss how to get started in bartering and the benefits of bartering. Get ready. Get set. Let's trade!
Is bartering right for me?
Do I need to join an exchange? How can I know if joining an exchange will help my business? These are just a few of the questions asked by business owners and professionals who are considering bartering their products and services. Barter is a smart option for businesses of all sizes, especially if the following traits apply.
1. Your business has excess inventory 2. You competitors have advantages or leverage over you 3. You company's product/service profit margins are at least 25% 4. You can increase production with increased costs 5. You have accounts receivable collection difficulties
What are exchanges, and how do they work?
Most businesses begin bartering by joining a Barter (or Trade) Exchange. The exchange acts as the "middle man" for every transaction you make. They also act as your sales promotion and marketing department. The exchange will target other members who need your product or service and direct them to you immediately. Most exchanges will also list you in their member directories, weekly fax updates, and other monthly publications. This makes the process much simpler. For example, imagine how difficult and time consuming it would be to find a business that is willing to trade you printing services for the services you have available. The exchange does this for you. All you have to do is call them and tell them your business needs and what services or products you have available to barter. The exchange keeps a database of all of its clients. Most exchanges limit the number of members that can offer a service. For example, it is not feasible for 10 dentists to join. This would create more supply than demand.
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