sabato 3 aprile 2010

Reasons to Barter

Reasons to Barter

If you have a business, you should take as many opportunities to barter for goods and services with other businesses as you can. You should try to trade for something before paying for it in cash. Barter deals usually require little or no money.

Ten ways that barter is beneficial for your business are:

  1. Bartering saves cash: The first and foremost reason why you would barter for goods before you buy them is that you would save cash. Money saved here can be then utilized in other areas of your business. A restaurant owner might use his meals to pay for dishware, rather than using cash to get it. It may seem like a small thing, but in a business like a restaurant this means a large amount of money saved.

  1. Advertising: Bartering in a trade network can help advertise your business in two ways. First, you can use your own products or services to purchase advertising in newspapers, magazines, television, radio, billboards, and so on. You will earn more cash-paying customers as they become more aware of your brand. Additionally, your business is advertised for free to other members within your trade network to bring you customers who can pay in the form of trade.

  1. Increases market: Bartering lets you reach out to a newer section of the market. These people become your customers only because your services or products are available to them on trade, whereas your competitors are not. This is new clientele that would not have come to your business otherwise.

  1. Barter for Equity: If you are a member of a commerce network, you can invest in equity stakes of other businesses by using any trade credits you’ve earned. This helps you increase your asset base and increase your investment.

  1. Saves perishable inventory: Bartering has helped save perishable inventory worth of millions of dollars. Airline tickets, hotel rooms, restaurant tables, advertising airtime, entertainment venues, etc., are all examples of inventory whose value is lost for every space that goes unsold, and barter has helped sellers recover millions of dollars worth of the value of those items.

  1. Helps explore potential of unused resources: Barter has also helped people use their skills that were previously of little value. Housewives and youth, for instance, have used barter networks to sell their services that are undervalued in the cash market.

  1. Mutual saving: Bartering is a mutual process, and because it helps you save, it necessarily helps others save. Each time you trade for something, you are helping not just yourself, but others when you trade your own goods. Overall, everyone cooperates and saves money, and this helps support the local economy.

  1. Helps you tide out a recession: Barter remains unaffected during periods of inflation. In many economies of the world, barter replaces money as the method of exchange when the currency is unstable, devalued by hyperinflation, or otherwise unavailable. Argentina and Myanmar (Burma) provide textbook examples of this phenomenon.

  1. Helps you reduce your need for credit: Your business may take out a loan from a bank or use credit from a credit card company when money is needed. This money is used to set up, establish, or run your business. However, if you are a part of a barter exchange, you can fulfill these needs without money by just using what you have to get what you need. This can help reduce or eliminate any debts you’d have from banks or credit card companies.

  1. Debt collection: Bartering is a great way to collect bad debts. You can ask your debtors to join barter network where they can earn trade credits, then they can pay you back with the same. The same applies if you are in debt to another business, where when cash is unavailable, you can use your unsold goods to pay off what you owe.


Copying and distributing this article

Ormita provides free updates about the generic benefits of barter to those interested in local currency, community currency, countertrade, reciprocal trade, barter exchange, time dollars, hours and other forms of community trade vehicles.


You may freely copy and distribute this article provided that you attribute the author and/ or source as the Ormita Commerce Network.


About Ormita

The Ormita Commerce Network spans 5 continents, with direct representation in more than 17 countries plus additional partnerships in a further 59 countries. The business allows companies to exchange goods and services on a reciprocal trade arrangement in order to expand their reach, access new customers, improve their buying power, monetise excess or unsold capacity and improve profitability.


Some of our Websites

Ormita Commerce Network Australia – www.ormita.com.au

Ormita Commerce Network Canada – www.ormita.ca

Ormita Commerce Network India – www.ormita.co.in

Ormita Commerce Network Mexico – www.ormita.com.mx

Ormita Commerce Network New Zealand – www.ormita.co.nz

Ormita Commerce Network United Kingdom – www.ormita.co.uk

Ormita Commerce Network United States of America (USA) – www.ormita.com


For Licensee, Franchise and Partnership Enquiries please visit : www.ormitacorporate.com


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