When you exchange goods and or services without the use of money, you are bartering. Bartering is actually a very creative way to do business nowadays especially to help lower expenses. Most importantly you do not need to own a business to barter.
Due to the flexibility, barter trade has grown in popularity. It has evolved into a more sophisticated business module when compared to ancient times. However, the concept is still the same. You exchange goods and or services with something that you want or need. Unlike in the past when such trade is done directly, modern times have embraced a commercial platform for businesses to negotiate and trade.
So what are the benefits of bartering to a business?
Generate new sales, new market penetration and customers
New sales and new customers are important for a companys’ survival. The mistake most companies do is they cut-down their advertising budget once the cash flow is tight. Businesses must constantly find ways to generate new customers and new sales and through barter exchange, it helps you reach a larger client base.
How is that possible?
Members on the exchange are looking for product and or services they need so that they can spend their trade dollars. Since they are already bartering, they know the benefits of barter and the leverage they have with their barter dollars. Hence, these are captive customers you can tap on because they would rather spend their barter dollars with barter members, instead of buying in cash from someone else.
Reduce lost money from idle inventories
Every time your employees spend their time not doing anything or whenever unsold stocks sit on your shelves means money is lost.