Benefits of Barter

INCREASE SALES:

Barter promotes your business to thousands of businesses in the barter network who are all potential customers, and helps you add on extra business over and above your existing customers. Businesses use barter to purchase different products or services that they need or want with our interest free trade credit and pay for their purchases with their goods or services.

PRESERVES CASH:

Saving Cash is the primary principle of Barter. Barter permits you, as a business person, to pay for what you need with your own goods or services, This helps you to conserve cash and working capital for other priorities. Purchasing with your Barter Trade Credits means that payment is made with sales done to new customers from the network.

Bartering helps reducing cash flow, overhead cost and operational costs. Several services offered through barter like Housekeeping, travel, advertising, accounting services etc relate to your overhead costs. Getting these services through barter helps you save cash. Businesses always need cash and barter always helps in preserving your cash.

INCREASE PROFITS:

Businesses in the Network make additional Sales within the network this means over and above your regular sales.This helps you in adding on new customers and adding new customer means more sales, hence more profit. Over and above that, the actual cost of the products or services you purchase on barter are actually the bulk cost of your Barter Trade Credits earned

EASILY ADD NEW CUSTOMERS:

Barter members can cost-effectively expand their reach by marketing their products or services to the barter network members. The large customer base of members provides a large market and a range of trading options.

INCREASE YOUR PURCHASING POWER:

Swap Products with barter the actual cost of the products or services you purchase on barter is actually the wholesale price of your Barter Trade Credits earned. Generating sales with built-in profits makes the cost of your purchases more economical on Barter. When you join a barter network, you open the door to a new, cash-less way of handling your business and expenses.

SURPASS YOUR COMPETITORS:

Barter helps you to expand your customer base,generate additional sales, improve cash liquidity and increase profits,thus surpass your competitors and gain a winning edge. Bartering through a Barter trade Network can help a small business to portray the image of being a big business without the cash-costs incurred by much larger businesses.

IMPROVE YOUR INVENTORY MANAGEMENT:

Bartering allows you to effectively improve your inventory management by converting excess inventory into valuable products or services. If you barter, you avoid having to liquidate excess inventory through drastic discounting. If your small business experiences seasonal markets, barter provides a profitable way to use the inventory on a regular basis. Barter provides a system to put that excess to use in profitable ways. Barter accomplishes this objective by matching your products or services with businesses looking to purchase them on trade.

HELPS YOU PURCHASE AT A DISCOUNT:

In many cases what businesses want is stronger purchasing power.

Members of a barter network sells their products or services to earn barter trade credits. By calculating the cash cost of obtaining barter trade credits, you can figure out the leverage or purchasing power of trade for your business.

The cash cost of each trade credit is the cash you directly have to spend to earn that credit. It is a combination of your cost of goods sold and the trade fees that trade credit costs you to get and spend.

How much more purchasing power do you have when you are buying with trade credits? By leveraging your new source of income you are essentially buying everything you get on barter at approximate 20% - 40% discount.

HELPS INCREASE PRODUCTIVITY:

Barter helps companies put inventory, equipment and employees to effective and efficient use, creating new revenue that would not have been available otherwise. That new revenue can be used to finance the purchase of new equipment, raw materials or services to support the business. Essentially, a company’s less productive assets are exchanged for more valuable goods or services through the help of a barter exchange.

IT DEVELOPS INCREMENTAL REVENUE:

Businesses with obsolete or idle inventory frequently find that bartering the assets yields a much better value than liquidating it for paise on rupee. Instead, the company can sell the inventory to a barter member for trade credits close to the book value, and then apply those credits to other business expenses, such as marketing, entertainment, travel or raw materials. Exchanging an unwanted asset for something else of value helps recover a significant amount of incremental revenue that might otherwise have been lost.

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