|

 Barter
is the exchange of goods and services without the use of cash. It is the
oldest form of commerce and today more and more businesses are rediscovering
the power of barter. When
you need a product or service for your business, you can pay for it with
your otherwise unsold products or services, meanwhile allowing your business
to expand without additional cash outlay. Over
65% of the Fortune 500 companies engage in barter to one extent or another.
In Southern California alone over 7,000 business engage in barter as an
alternative to the cash driven economy.

Put
it simply, barter save you cash. You pay for the goods and services you
need with what you have to offer. Use barter tactfully can help you generate
more cash business.
Barter
reduce cash expenditures on operating costs therefore maximize working
capital. It is the perfect tool for moving excess/obsolete inventory or
non performing assets thus minimize costly write off or liquidation at
deep discount. You can also use barter to reduce overhead costs and increase
profit margin for the product or service you provide for your cash customers.
 Barter
brings new business. Your membership in the trade exchange bring you businesses
that are otherwise beyond your market base. Members of the trade exchange
are motivated to do business with you because you help them to save cash.
You gain visibility, establish business relationships, gain referrals
and pay for advertising using trade credits instead of cash, thus diversify
your advertising avenues to bring you more cash business.
Expand
your business geographically. Through barter, you can extend your business
beyond your current market base. ABC trade exchange maintain relationships
with many trade exchanges in the US and other countries, providing you
with opportunities to establish your business presence nationally and
internationally. On a smaller scale, barter allow your business to expand
beyond your city or country limits.

- International Barter. Companies trade internationally, where payment
is either in cash or goods or both. Seasonal goods and excess inventory
can be easily traded to reduce lost and promote business.
For example:
- During the end of
Summer, excess inventory from Spring and Summer fashin in the U.S. can
be traded to Australia for native goods rare in the U.S.
- Japanese culture items, cars or consumer electronics can be trade
to U.S. for American India culture goods for the Japanese market.
- Large firms use barter to move excess/obsolete inventory, allowing the
companies to exchange in new markets and establish market share and brand
names, therefore improve earnings and increase cash flow.
For example:
- Xerox traded a discontinued line of copiers for down payment of an
office building.
- IBM traded their obsolete computers to clear its shelves and offset
the cost of 120 VW and express mail services.
- Local businesses trade among themselves for products and services to
reduce cash outlay, promote business and improve personal life style.
For example:
- An attorney can
spend the barter dollars accumulated through trade for office supplies,
auto rental/repair, business dinners and plumbing service.
- A restaurant owner can trade his service for kitchen supplies, grocery,
new carpet, and plumbing service.
- A plumber can trade his service for auto repair, advertising, legal
services or home entertainment systems.
|