The Art of Bartering:
A creative business practice that keeps the cash flowing
Barter-Trade has been around for a very long time. In recent years, when money was tight, the practice started flourishing again. Today, thousands of individuals and trade clubs around the world are doing millions of dollars of in goods and services for their personal use and that of their business without the use of cash.
Take a moment to do a quick search for Barter in your city. You will find Amazon.com/trade, Barter on Craigslist, barter groups on Facebook, and Barter-Trade clubs – all with very active memberships. Barter is alive and profitable.
1. exchange (goods or services) for other goods or services without using money.
“he often bartered a meal for drawings”
synonyms: trade, swap, exchange, sell “they bartered grain for salt”
1. the action or system of exchanging goods or services without using money.
“it will be paid for by a mixture of barter and cash”
How are businesses using Barter-Trade in today’s marketplace?
Barter is the exchange of something of value for the equivalent value – No cash is involved. to participate, you need to have something that is of value to someone else to exchange for something of equal value for you. It is a win/win situation.
But what if you don’t need what the other person is willing to trade? A common concern. Will it be useful for me?
Out this concern, Barter-trade communities have flourished. A Trade community produces “Barter exchange dollars or vouchers” that are used within that community. (Some communities even have agreements between communities to extend the value of your barter trade even further.)
This is all Tax legal. In fact, the IRS has a Barter Tax Center and requires you to keep records and report your transactions the same as you would your cash deals. You are not evading taxes. Barter-Trade is another tool in your business toolbox that allows you to leverage more out of your current marketing expenditures.
Why you should consider unleashing the Bartering-Trade power in your business.
The following are 4 of many benefits a business will experience when they engage in Barter-Trade.
- Optimize resources
Barter does not replace what you are already doing on a daily cash flow basis. Implementing barter for some of your deals optimizes your resources. It will allow you to use something you’ve already paid for instead of cash as an exchange keeping money in your pocket available for other uses.
- Build relationships with new, loyal clients
Through the exchange of the goods and services with others eager to trade, you extend the numbers of businesses you reach.
- Conserve cash
There may be times when you require a service or product and the cash flow is allocated to other uses. A Barter-Trade exchange could be the perfect solution. Think creatively in offering your “excess” products, time or services to receive what you need when you need it.
- Create Buying and Purchasing Power
Bartering is an Art. “It is about Revising Assets and Recycling them into something of use.” Is there a way for you to provide a unique value that allows you to “bank” barter dollars to accumulate and use for a larger purchase?
With an introduction into Barter-Trade, I hope you are curious to know more. Have you used Barter in your Business? To dive deeper into the creative uses of barter for your business, give me a call.
Terry Loving can be reached at (206) 200-0914 to learn more about the Seattle eBarterExchange as well as arranging to speak about barter at business networking events. Give her a call today to get your questions answered.
Excellent book on the topic: No Cash No Problem