The Benefits of Business-to-Business Bartering

Barter is not a new idea. It has, in fact, beenmight not be attainable any other way. And that
around seemingly forever. There is a good reasonaccess to potential new customers provides you
for that. The act of bartering - exchanging goodswith a resounding competitive advantage over
and services for goods and/or services- isother small companies offering the same products
generally beneficial to both parties.or services you provide.
Bartering often takes place between two· Barter Helps You Avoid Bad Debts. This
individuals (consumers), but it also frequentlyshould be an obvious advantage. When you
occurs in a business-to-business environment. Inaccess membership in a Barter Exchang e
fact, there are companies today that act as acompany, you generally know, in advance of any
sort of clearinghouse for businesses that wish totransaction, if your bartering partners have the
engage in bartering.wherewithal to meet the payment requirements.
These barter exchange firms offer memberships,The chance that payment will not be forthcoming
primarily to small businesses, and the businessesis virtually non-existent. That should be comforting
that have obtained the memberships can thenfor you to know.
engage in bartering arrangements with other· Barter Provides You With Wholesale
members. It works for both parties because smallBuying Power. There is a simple truth you need to
businesses are often strapped for cash and theknow about companies that engage in bartering. It
bartering option offers them a viable alternativeis this: the real cost of products you purchase or
and a realistic and sensible way to acquire atrade is actually the wholesale cost of the "barter
product or service that might not otherwise bedollars" you've earned for the transaction that
able to afford.took place through the Barter Exchange
It's worth noting that there are many benefitsCompany. That's a fact.
that accrue to businesses that engage in this type· Barter Simplifies Your Record keeping.
of enterprise. Equally important, there is little, ifCompanies, like yours, that use Barter Exchange
any, downside. Consider all of the positives.Companies enjoy an important added benefit:
· Barter Leads to Additional Sales. Youmore control and much better record keeping.
may ask yourself how that is possible since noWhy? You have a virtual partner to help in the
real money exchanges hands in the barterrecording of transactions - the Barter Exchange
transaction. However, successful barteringCompany itself.
between businesses builds goodwill and a solid· Barter Helps in the Collection of
reputation for the bartering company. And thatReceivables. This may be a big deal for you. Your
can lead to additional sales, at a later date, for theclients, probably small businesses, as well, may be
products and services the business offers thatcash-poor from time to time. The same may be
have not been part of the bartering arrangement.true for you, of course. In either case, barter
The fact is sales increases do occur forgives you, or your clients, the added option of
companies that build trust through bartering.offering valuable goods or services in lieu of cash
· Barter Leads to Solid Referrals. It's true.as a way of settling a debt. Needless to say, this
Companies that enjoy successful barteringcan enhance your receivables and help you keep
transactions with one another often tell othersoutstanding debt or unpaid bills off of your books.
about the positive experience. The referral may· Barter Can Help You Develop Employee
result in additional bartering, but it also may leadIncentives. Perhaps you think it's not possible. In
to new sales ... and, more importantly, new andthat case, you would be wrong. Your membership
loyal customers.in a Barter Exchange Company can often put you
· Barter Helps Companies Move Excessin touch with other members whose services you
Inventory. This should come as no surprise.may covet, such as a dentist, for example ... or a
Companies that acquire memberships with aclothing retailer ... a jeweler ... or countless other
Barter Exchange organization open up a new andtypes of businesses. The use of barter will enable
potentially large customer base for themselves.you to provide your employees with valuable
That's because the Barter Exchange Companybenefits -- like dental care - that costs you
provides access to other companies that wereabsolutely nothing.
previously unknown to the new memberWhen you consider the broad array of
company and, therefore, not potential customers.advantages available to you (especially if you are
These new companies that become customersthe owner of a small company), it makes darn
will, of course, purchase products and/or servicesgood sense to make barter an essential part of
in addition to any barter arrangement they mayyour daily business operations. The fact is barter,
initially participate in. And that, of course, leads towhen used judiciously, can help grow your small
reduced inventory.business even while you are probably
· Barter Helps Provide a Competitiveunder-financed.
Edge. Surely, you can understand how this mightIt may be an old idea, but for you, it's also a
happen. Once you become a member of a Bartergreat idea. And, while barter is generally best
Exchange company, you give yourself access toaccomplish when you have a membership with a
dozens, perhaps hundreds, of new companies,Barter Exchange Company, it may also be
each of whom has the potential to become morepossible to use barter with those companies with
than a barter exchange partner. In truth, yourwhom you already have a relationship.
connection to a Barter Exchange companyIf you believe barter fits in your future, consider
creates a kind of built-in prospect list for you thatall the options and check each one out carefully.