How Barter Works

How Barter Works

Barter is simply business as usual with an unusual twist. Instead of using cash to
buy the items that you need, you use trade credits that you earn by selling your
product or service to other trade club members. By using barter in your business
you are actually filling two voids at the same time. You are providing other business
owners with an opportunity to obtain items that they are in need of and they in turn
are providing you with the same.

By using barter, you are expanding the normal limits that are placed on your
business for reasons of location or the cost of entering distant markets such as
advertising. It is very unlikely that business you receive through the use of barter
would ever be available to you through any other channel. Barter members are
willing to travel much farther to obtain needed items from other barter members
first. If you are not a member, they would have no way of locating you.

It is recommended that trade can act as a terrific vehicle to supplement your
business. It is necessary to limit the amount of trade to the proximity that you can
spend it. The way to determine how much trade you can accept is to calculate how
many items that you are now presently paying for in cash can be substituted for
trade. For example if a business is presently spending $3,000.00 per month for non
rent/payroll items such as advertising, printing, accounting, cleaning services,
security, messenger, travel & entertainment, most of these costs can be
substituted by the use of barter. With this calculation, this business could accept
at least $36,000 in a given year. Aside form cutting your expenses, barter also
allows you to expand the services that you are presently able to use. This can
serve to help highlight your business in the marketplace.

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