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HOW BARTERING WORKS...
Finally, an Internet trend Fred Flintstone could grok!
Barter, which
has been around since a hunter first traded a woolly mammoth
tusk for a flint ax, has moved
online in a big way. Its primary
adherents are small businesses that benefit by getting goods
and services without having to lay out cash.
Even though most cultures adopted
cash-based economies millennia ago, barter never really went
away. About $16 billion worth of goods and services were
bartered in 1999. Much of that happened through small regional
exchanges and informal community networking.
What Internet barter sites bring to the
party are a much broader reach, unconstrained by geography, and critical mass.
Scale matters, and the Internet provides scale!
Why Does Barter Work?
Most companies have surplus inventory, unsold goods, and unused labor. For instance, hotels don't sell out every room
on a daily basis and airlines don't typically fill all seats in
the plane on every trip. Magazines may barter to fill
advertising space. Restaurants use barter as a way to increase
business during slow periods. Retail businesses and
manufacturers may barter products to make space for new
inventory, etc.
Who Barters?
Bartering Boom: Barter is back in style and spanning the globe.
The International Reciprocal Trade Association estimates that in 1998 over 470,000 companies actively participated in barter in the US for a total of over $16 billion in annual sales. Over 65% of the corporations listed in the New York Stock Exchange are presently using barter to reduce surplus inventory, bolster sales, and ensure that production facilities run at capacity. The U.S. Department of Commerce estimates that 20 to 25% of world trade is now barter, and corporate barter is now a 20 billion dollar industry.
How to Barter...
As one of our Barter clients you must post your wares at fair-market value, the same rates you would charge cash
customers. When someone takes you up on the offer, they get
that dollar amount of credit on the system, which they can
redeem whenever they want.
Why Barter?
1. To Conserve Cash:
Preserve Capital. Many businesses at
certain periods during their business lifecycle will have
periods of slower cash flow or limited capital. Start-ups and
expansion companies with limited money for growth can use
bartering as a strategic tool to acquire needed services.
2. To Increase Buying Power: access to
limitless goods & services to help you grow!
Buy Media Bartering may be the simple
reason your competitors are buying more advertising than you
and outselling your small business. By turning your excess
inventory or services into print, TV, or other forms of
advertising media, your company can maximize marketing and
improve its bottom line.
3. To Increase Your Customer Base:
Bartering offers a way to establish or build on your reputation. You'll also be adding new clients that you probably would not have had to your list, which may lead to new cash referrals or repeat business. Word of mouth is the best advertising. Your barter customers become your best advertising via word of mouth.
4. Move access or surplus inventory:
You will actually be able to create a list
of items and services that you want to barter and a different
wishing list with all those services and things you are
interested in! By offering your services and products through
the TriangleBarter.Org, new businesses can build credit in TriangleBartering Dollars that they can later use with other businesses in
our DataBase.
5. Enhance your lifestyle: use barter for business or for your
personal needs. Benefit from travel, restaurants,
entertainment, luxuries and more!
And believe me, it works! I am now
actually bartering my Web Design services in exchange for FREE tickets to Disney World in Orlando for four
days, 3 nights in a 5-star hotel with Shuttle Service to all
major attractions, and a FREE cruise to Cancun with all
expenses paid.
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