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Related Article Content


Barter Companies: Better Than Selling

by Terry Lamb

Barter companies let you expand your market and keep cash-paying customers. This means incremental business - customers who skip competing businesses in order to conduct business with you. Barter makes new customers since buyers are likely to pay with products or services and thus save cash. Many businesses prefer bartering and conserving cash.

Barter customers will pay retail, so you receive the full value for your goods and services. Retailers have to make inventory move, and our customers want the newest merchandise every season. Barter Companies bring you buyers to move the excess inventory along, getting rid of advertising costs and the heavy discounts which would otherwise be needed to do this.

You can sell your excess inventory easily with the assistance of barter companies, whose job it is to negotiate the surplus inventory's sales price with distributors. By employing barter companies in this capacity you can realize a greater return on investment.

Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Trade exchange should be considered a marketing tool, not a tax tool. Barter transactions typically involve companies with unsold goods on retail.

Companies big and small are now using barter to sell and purchase goods and services. Bartering is the exchange of goods and services without the use of currency. Although bartering has been used in commercial and private transactions since ancient times, its appeal notably increased in the waning years of the 20th century.

It is a surprise to note that bartering in the world arena has proven to be a complement to economies based on refined marketplace and a way to remain in existence in declining economies. For example, in the United States, the dollar value of barter transactions grew, on an average, at approximately 16 percent annually for eleven years since 1987. On the other hand, nearly 76 percent of business transactions by major companies in tainted economies are on barter basis.

Small businesses practice bartering of goods and services almost every day. This is what is known as small business marketing. Whenever one company makes an agreement to provide some good or service to another company for an exchange of something of similar value, a bartering deal has been made between the businesses.

If you work with a barter company, it will be easier for you to both find a larger target market and to maintain your current loyal customers. Barter companies coordinate the selling of surplus inventory by negotiating for you to receive either the going price in the marketplace or your normal selling price to distributors. Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Trade exchange should be considered a marketing tool, not a tax tool. Every day, both materials and services are traded between small businesses. In a nutshell, this is small business marketing.

Published August 20th, 2008

Filed in Marketing

 

 

 

 

 

 

 

 

 

 

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