An Overview

• Can you use new business?
• Do you have un/underutilized products or services?
• Do you have products and services you need to purchase for your business?
• Are you finding it difficult to compete with the "big boys" with the "deep pockets"?
• Wouldn't you like to have a competitive edge?

Barter is an excellent way to get the new clients you need to grow your business. Barter can help you utilize your products and services more fully. Barter allows you to purchase some of the products and services you need for your business without spending cash. This article will give you an overview of how you can use Barter to grow your business.

WHAT IS BARTER?

Barter, also referred to simply as trade, is the oldest form of commerce or business in the world. Barter is simply the exchange of one product or service for another without the exchange of cash. Described another way ? barter is using what you have to get what you want or need. Virtually all of us have experienced barter, particularly in our youth ? trading baseball cards, doll clothes, etc. Businesses of all kinds and all sizes, from home-based, self-employed companies to multi-billion dollar corporations, are trading more than ever for a wide variety of products and services. Barter is now a multi-billion dollar per year global industry. Herein, we will show you how you can take advantage of the opportunities afforded by barter to grow your business.

HOW DOES IT WORK?

There are a number of ways and types of barter that you can utilize to grow your business. The two types of barter that are the most accessible and easiest to utilize are discussed herein. They are Direct Trade, or one-on-one trading, and trade via a retail Trade or Barter Exchange.

Direct Trade, or one-on-one trading, is where you offer to trade your product or service with a business owner or professional who offers a product or service that you want. An example would be a restaurant owner who offers to trade a certain number of meals to a printer to have their flyers printed.

A Trade or Barter Exchange is a network of business owners and professionals who have agreed to offer their products and services on a trade basis to other clients of the exchange. The exchange markets your products and services to the other exchange clients. Utilizing a Trade/Barter Exchange is usually the most efficient manner to maximize the benefits of barter for your business since you do not have to negotiate and account for each trade yourself.

WHICH PRODUCTS AND SERVICES CAN YOU BARTER?

Anything that can be sold or bought on a cash basis can also be bought or sold through barter. Many people will buy your products or service, or more of it, on a trade basis when they would not do so on a cash basis, due to cash flow, their buying discount with trade, etc.

Since August is traditionally “back to school” month, now is the time to offer a “mini-barter class” to emphasize what members can do to be more successful traders. No matter how proficient we think we are at working deals on trade, it never hurts to remember the basics of bartering – whether buying or selling.

Let’s start with the seller… You want to offer your product or service at a fair retail rate with good trade terms on a controlled basis. That sounds simple enough, but you might be surprised at how many people inflate their prices or want to offer only a token amount of profit in trade – and who honestly feel they are providing a good incentive to do business with them. Here’s the bottom line – if the buyer isn’t saving money by trading with you instead of paying cash elsewhere, they shouldn’t be buying from you. If your price is at fair retail and your trade terms are such that no more than 30-35 cents on the dollar are tied up in hard costs, it’s probably a good deal for the buyer. Considering the amount you desire to spend on trade, your measured offerings will pay off handsomely.

When you are the buyer, there are also a few things you can do to stay ahead of the game. First, utilize all the information you receive from MerchanTrade – consistently. You should consult the quarterly Trading Post or simply call us for the latest updates, additions and references almost all of the time before paying cash. We will steer you in the right direction. The weekly emails and faxes promote new businesses, one time deals, or repeat members needing business, and they should be your rudder to guide you towards successful trade opportunities in no more than 5–10 minutes per week. Smart traders prioritize these few minutes each week.

In addition, use the monthly MerchanTrader Newsletter to be aware of new members, limit changes, new phone numbers, and seasonal offerings in the “Spotlight”. Also don’t forget the monthly updated website as a source of current information. That’s why it exists, so be sure to use it!

Finally, be a considerate and courteous buyer and seller when working transactions. Remember, if both you and your fellow traders “win” and everyone feels good after the deal, more people will do the same in future transactions. Members just like you are the building blocks who form the future of this exchange. Let’s make sure we not only have a solid foundation but a steady structure as well!

IT IS TIME-CONSUMING TO FILL OUT A TRADE SLIP, HAVE THE BUYER SIGN IT, AND THEN MAIL IT TO YOU FOR CREDIT. MUST I SUBMIT A TRADE SALE THIS WAY OR CAN I SUBMIT IT OTHER WAYS?

You can submit sales in a variety of ways. However, you as the seller need to be diligent in getting a buyer’s signature somewhere. The trade slip was created to protect both the buyer and seller in any debate over whether a transaction was done. In any dispute, the MerchanTrade office can fax copies of the trade slips to buyers so they know who signed for services or product purchases.

Since we know the process of filling out and mailing trade slips takes more time than some members want to spend, we also allow members to email, fax and even call transactions in to be recorded. However, no matter how a transaction is turned in to MerchanTrade, it is critical that the seller have on file a signature from the buyer on some official document as proof that the sale was authorized.

Understand that if a buyer disputes the transaction but the seller has no signed evidence anywhere authorizing a trade, then MerchanTrade as a third party record keeper must rescind the purchase until the dispute is resolved between both parties.

In summary, you can turn in transactions in a variety of ways, but we ask that you ALWAYS protect yourselves by getting the buyer’s signature somewhere on a work order, invoice, etc., showing the amount of trade approved. This way, all parties go away happy!