Bartering is an ancient practice that has evolved to become a sophisticated business model. It involves exchanging goods and services without using cash, and it can be a creative way to sustain a business while lowering expenses. In today’s economy, bartering has become more flexible and has grown in popularity as businesses seek new ways to generate sales and reach new customers.
Leverage organized trade
Trade exchanges have made it easier for businesses to trade multi-directionally and find build an overall larger client base. Members of a trade exchange are able purchase products and or services they need from other participating members, without spending cash. Instead, trade credits are deducted from the member’s account.
Active trade clients understand the advantages of modern barter systems and the leverage they have with trade credits. Hence, these are captive customers you can tap into because they would rather spend their trade credits with barter members, instead of buying in cash from someone else.
More cash, more customers
One of the benefits of bartering is that it helps businesses generate new sales, new market penetration, and customers. By using a trade exchange, entrepreneurs and business owners can reach a larger client base and generate new sales. They can tap into captive customers who are looking for products or services they need and are willing to spend their trade dollars with other barter members instead of buying in cash from someone else.
Another benefit of exchanging with businesses is that it can reduce lost money from idle inventories. Every time employees have downtime or unsold stock sits on shelves, that equates to lost money. Trade exchanges enable businesses to sell inventory at full retail price on trade and fully utilize idle time from employees.
Cash is king, so conserve it
Cash is king, so conserving it is important. When businesses start exchanging their goods and services, it becomes their biggest asset. How much cash a company has in the bank will not restrict their purchasing power. Purchasing is done through the potential to make new income rather than from a business sales history. Every business will experience a shortage of cash, but when exchanging enables a business to continue to trade a valuable service or product that they need, the lack of cash resources does not become an issue. Business owners can trade for supplies, hotel stays, advertising, entertainment, employee incentives, and other necessities that cost them next to nothing.
In conclusion, bartering is a sustainable and strategic way for businesses to sustain their business and lower expenses. By joining a trade exchange, businesses can generate new sales and reach a larger client base, reduce lost money from idle inventories, and conserve cash.
With over 33 years in the barter industry, Tradebank is a valuable resource for businesses seeking to benefit from modern barter.
