Indore December 2, 2013: Barter is a medium in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange (without use of money).
The companies buy and sell products and services to each other using an internal currency known as barter or trade Rupees. For example- A three star hotel made staying and food arrangements for a big client of a corporate, the hotel expects return of its services from corporate, which in turn provides its products worth service charges to hotel.
It is estimated that over 350,000 businesses in the United States are involved in barter exchange activities. There are approximately 400 commercial and corporate barter companies serving all parts of the world and the % volume is as high as 40%. In India still the percentage of barter business is around 15 to 20%.
There are many reasons to use a good barter exchange:
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Increased purchasing power |
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Increased revenue |
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Preserving cash |
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More clients (both from the barter exchange and from cash-business referrals from barter clients) |
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Better cash flow |
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Greater marketing opportunities |
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Improved efficiency |
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.
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 YOUR PURCHASING POWER
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.
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.
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.
PR 24×7 Network Limited the leading communication company of the country is strong believer of barter and provides services to clients on the basis of exchange of services with products of the clients. A good number of clients apart from receiving companies’ regular PR services are also dealing with its services by bartering their products/services. Barter has been proved catalysts to many clients and company as after using it in transaction; the results were fantastic at both corners- and that too without involvement of a single rupee. CCI Newswire
