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Use Barter In Your Business

Written by: Robin Elliott

Article Overview: Barter is like printing money! Read how you can use this powerful tool for business leverage.

Use Barter In Your Business

When we exchange resources, goods, time, inventory, skills, equipment, goods and services, we’re bartering. Instead of using cash, we can barter underutilized time, space or other assets and even future services and production, especially if the products and services have big margins. And they may be depreciating, hard to sell or easy and cheap to produce. Extra capacity is as good as hard cash when bartered.

I know a dentist who bartered his services for advertising time on a radio station and a restaurant that bartered meals for cleaning services. Hotel rooms and staff training, consulting and legal services, high margin electronics and a host of other products and services lend themselves to barter. Barter conserves cash, and the goods are always bartered at their retail price! That means that if your food cost percentage is 34%, you’re buying at a discount of 66%!

You can even pay people to work for you with barter. And with redeemable coupons and gift certificates, you are essentially being loaned money at no interest until those coupons are redeemed. “Breakage” makes barter even more attractive – a certain percentage will not be redeemed.

Barter is like printing money! Deals can be triangulated and cash flow can be relieved and ramped up. Plus, one barter transaction can lead to repeat business and thus an exponential return on investment (without a cash investment!) Bartering services and slow moving inventory for advertising is extreme leverage. Barter can produce cash customers. Think about the resources you have and who would want them. Work ON your business instead of IN it.


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When we exchange resources, goods, time, inventory, skills, equipment, goods and services, we’re bartering. Instead of using cash, we can barter underutilized time, space or other assets and even future services and production, especially if the products and services have big margins. And they may be depreciating, hard to sell or easy and cheap to produce. Extra capacity is as good as hard cash when bartered.

I know a dentist who bartered his services for advertising time on a radio station and a restaurant that bartered meals for cleaning services. Hotel rooms and staff training, consulting and legal services, high margin electronics and a host of other products and services lend themselves to barter. Barter conserves cash, and the goods are always bartered at their retail price! That means that if your food cost percentage is 34%, you’re buying at a discount of 66%!

You can even pay people to work for you with barter. And with redeemable coupons and gift certificates, you are essentially being loaned money at no interest until those coupons are redeemed. “Breakage” makes barter even more attractive – a certain percentage will not be redeemed.

Barter is like printing money! Deals can be triangulated and cash flow can be relieved and ramped up. Plus, one barter transaction can lead to repeat business and thus an exponential return on investment (without a cash investment!) Bartering services and slow moving inventory for advertising is extreme leverage. Barter can produce cash customers. Think about the resources you have and who would want them. Work ON your business instead of IN it.

Related Articles
  Using Money You’ve Already Spent
  The Barter System -- Overlooked and Underrated
  Growing Your Business Profits
  The Hidden World of Bartering
  People rarely buy what they need if you can sell them what they really want

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