When you exchange goods and / or services without the use of money, you are exchanging. Barter is actually a very creative way of doing business today, especially to help cut expenses. Most importantly, you don't need to own a business to trade.
Due to flexibility, barter trading has grown in popularity. It has become a more sophisticated business module compared to ancient times. However, the concept remains the same. Trade goods and services with something you want or need. Unlike in the past, when such trading is done directly, modern times have adopted a trading platform for companies to trade and negotiate.
What are the benefits of barter for a company?
Generate new sales, new market penetration and customers.
New sales and new customers are important to the survival of a company. The mistake that most companies make is that they cut their advertising budget once the cash flow is low. Businesses must constantly find ways to generate new customers and new sales, and through barter exchange it helps you reach a larger customer base.
How is that possible?
Members in the exchange are looking for products or services they need in order to spend their business dollars. Since they are already trading, they know the benefits of barter and the leverage they have with their barter dollars. Therefore, these are captive customers that you can access because they prefer to spend their barter dollars with the barter members, rather than buying cash from someone else.
Reduce money lost from idle inventories
Every time your employees spend their time idle or when unsold stocks are on their shelves, money is lost. When this happens, you are forced to cut prices just so that your inactive inventories can be moved because your stocks become obsolete and lose value over a period of time. However, through a barter trade, you have the ability to sell your idle inventories at the full retail price in the trade, therefore at the same time making the most of employee idle time.
Cash is king ... so keep it
Our economy is shaped in such a way that it is important to have cash or liquidity. Most companies do not realize that when they exchange their goods and services, it becomes their greatest asset. This is because the amount of cash a company has in the bank will not restrict its purchasing power. Purchases are made through the potential to generate new income rather than from your business's sales history. Every business will experience a shortage of cash and is something to be ashamed of. However, when barter trading allows you to continue exchanging a valuable service or product that you need, cash shortages do not become an issue. Your Barter capacity will be limited by your creativity. I have business owners who trade supplies, hotel stays, a house, and even advertising that costs them next to nothing.
The above are just 3 tips on the benefits of barter trading. I tackle more profit strategies to help you learn how you can buy almost anything with little or no cash. You must understand that bartering is about leverage!
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