Monday, June 28, 2010

What do you do without cash or credit? BARTER

BARTER
  by Joyce E. Barrie

WHAT?
What Is Barter?

 Barter is simply the exchange of goods or services for trade rather than for cash.  The one-on-one concept of barter is simply a trade between two people of what they wish to offer each other without using cash as the medium of exchange.  Sophisticated, computerized barter lets you trade your products and services with other clients through a nationwide network.

The acceptance of barter as a highly profitable way of doing business is most evident by the fact that barter now accounts for almost $700 billion in world commerce.  There are some very respectable barter companies whose purpose is to bring together business and professional people who are willing to exchange the products and services they sell for products and services they need to operate and expand their business, without the availability of cash.  Barter organizations make this possible through their vast networking capability.

HOW?
How Does Barter Work?

On the one-on-one level, it is as simple as you telling me you would like to do my taxes this year in exchange for a professional consulting session with me.  If we both agree on this exchange of services, we have bartered.  If you and I pay cash to each other for our respective services (even if the dollar value is identical) it is not a barter situation.

On a more sophisticated level, if you want to acquire some product(s) or services, and you don't have a cash flow and/or you have no idea of which company will barter with you, you can simplify the process by joining a professional barter organization.  The barter company as a clearing house for the goods and services of its members.  You can join a national barter organization by paying a one-time membership fee of $495, then it's $6 a month in barter and it's 10% cash for any purchase.  There is no transaction charge on the sell side.  The annual renewal fee is $60 cash and $90 on trade.  Other barter companies have similar sign-up fees, yet may charge you 5% cash for any purchase and 5% for any sale.  These fees are small compared to the tremendous leverage you have in purchasing power.

WHY?
Why Barter?

First and foremost:  You significantly increase your purchasing power and conserve cash by making purchases using the barter system instead of cash.  Second: Additional business.  The barter community will bypass the cash competition to barter with you.  This might even generate referrals that pay you in cash.  Third: Increase  your cash intake.  You can barter advertising, brochures, print and direct mail to bring new cash customer your way.

WHO?
Who Barters?

Countries, corporations, retailers, business owners and individuals are involved in this cashless exchange their merchandise for what they need from the barter network.  Individuals exchange their respective services with each other.  For example, I would be willing to barter professional seminars for a color computer scanner, telemarketers, graphic artists, professional organizers, a great dentist, book agent, computer teacher, fitness trainer, professional meeting rooms, a private office and/or loft space for scheduled classes.  I would also be willing to barter my services for a matchmaker (who has time to look!?!)

How about you?  If you are advertising, have a retail store or restaurant, have computer and/or fax machines, supply printing services, you are a prime candidate for the barter network.  Unfortunately, not everyone is accepted as a member.  Honorable barter companies are committed to the success of their members.  They will decline your application if they already have enough members offering what you wish to offer.  If you would like more information on bartering or would like to join a barter organization, email me at: coachcorner@aol.com

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