Tag Archive for business bartering

Bartering Tips For Online Business

Back in the early days of civilisation when there was no accepted form of currency, purchasing was based on the barter system. If the caveman down the way had a hunk of dinosaur meat you were interested in, you could offer him a pelt of fur in exchange for it. You got to eat, the other guy got to stay warm. It was a win-win situation.
Things have certainly changed in modern society but the barter system is still in use. Trading products, services, or promotional efforts provides an affordable way to extend your internet marketing reach.

Trading Services
You might be in need of professional services for your company. Often accounting or legal services, necessary for the growth and compliance of your e-commerce company, present prohibitive costs to the small business owner. Why not barter for these services?
Consider offering a free banner ad or a complimentary write-up on your blog in exchange for an initial consultation or a service from a professional who offers the services you need.
If your first offer doesn’t pique the interest of a professional provider don’t give up. Provide a list of things they can choose from. There is bound to be something you can offer that is of interest.

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Promotional Bartering
You can really extend your marketing reach if you partner with others to help spread the word about your online business. This is a simple concept, usually offered in exchange for like promotional efforts.
Working with another online individual or company, you can offer to exchange banner ads, blog posts, a link in a blogroll, or even do-follow comments.
But you can also use other items to barter with. If your website sells products, consider giving something away in return for a posted review, a testimonial, or a referral on a social media site.
Planning an event? Whether it is an online or offline gathering, find the vendors who can supply the needed components, such as webinar software. Ask if you can exchange the necessary product or service for advertising spots on your website or a complete write-up of the event afterward that showcases the vendor’s offerings.
Need a logo for your start-up? Why not offer the graphics artist a direct link from your site in exchange for the design or a deep discount?

General Bartering Tips
Bartering works best if you attempt to exchange items or services of similar value. Offering a blog post in exchange for the complete legal setup of your business is probably not going to entice a lawyer to take you up on this deal. It is easier to make appropriate offers by first assigning a dollar value to the product or service you are using to barter.
If you don’t already have a relationship established with a vendor, provide them a show of good faith by giving something upfront. With so many scam artists on the internet these days, many people are leery of deals from an unknown source.

Business to Business bartering

Originally on http://www.cyberrepublic.net/growth-in-small-businesses-drives-business-to-business-bartering-on-b2betrader-com.html

The dictionary defines bartering as the ‘exchange of goods and services without monetary transaction’. It is simply an exchange of goods between two parties, who need something from each other. This mutual give and take has been practiced since antiquity, but has had its share of problems too. Picture this, a fishmonger wanting a new fishing net goes to a net maker with a handsome catch of fish. But the net maker isn’t interested in his fish. So, the fishmonger has either to remain without a net or make one on his own. And he can’t do either. So, he exchanges his fish with someone else for an item that the net maker would be interested in, and exchanges it to get his fishing net. This is what happened till money made its appearance.

Bartering has not just stayed alive through time, it has made a significant come back in the business world. The International Reciprocal Trade Association reports that bartering today is a whopping six-billion-dollar business-to-business success story worldwide.

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Benefits

Conserves cash: Cash, the lifeblood of business, is always in short supply, whether for a corporate giant or a small-scale industry. Since bartering generally doesn’t require financial transaction, such a deal becomes mutually advantageous, as neither party has to part with cash to obtain the desired goods or services.

Generates sales and profits: Not only does bartering conserve cash, it can actually generate sales and profits. This is because inventory turns over more quickly and service providers sell more of their time than they would otherwise, had they insisted on cash.

Creates new customers: Bartering brings together unlikely parties, which would never have met in the normal course of business. If satisfied with the deal, these parties can refer many more customers to each other, including the ones who pay cash. Even the original barter customer may start paying cash in future transactions.

Moves surplus stock: Barter moves surplus stock, which otherwise would have remained in the storehouse. It also saves money that would have been lost in advertising and weighty discounts.

Utilizes downtime and unused capacity: If you are not utilizing the full capacity of your plant or service all the year round and can handle new customers, then bartering may pave the way for new business opportunities.

Lowers prices: With bartering the goods and services procured always turn out to be cheaper than they would have been with cash, since there are no overheads. This can give you an edge over competitors.

The most common type of bartering is one-on-one or direct bartering that you can indulge quite successfully. The other type of bartering is called the third party bartering. It uses some form of currency to allow more dynamic exchange between the parties. Businesses generally use both types for best results.
Take advantage of this proven age old process and keep your business alive.

An unsung marketing tool: business barter

Originally on http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/sales/an-unsung-marketing-tool-business-barter/article2142109//
By: Ryan Caligiuri

I think of marketing as being all about finding the right strategies and tools to help your company grow.

That means everything from finding competitive advantages to implementing multiple lead-generating programs to using a variety of ways, from traditional advertising to social media, to spread the word about what you have to offer.

ou also have to have in place strategies to keep costs in line – and find ways to get products or services your company needs to grow that you would normally pay for with cash, but which you might not be able to afford.

That’s where one of the oldest and most underutilized tools in the entrepreneur’s tool belt comes in. It’s called business barter.

It’s not rocket science and it’s not new, but for many small and cash-strapped businesses, it can be a very effective part of the arsenal for growth.

Running a small business, I like to keep my cash close and have to be careful about how I spend my money. I don’t want to spend on things I know I can barter for when I want something from someone, and I can give them something — my marketing services — in return.

Think I’m kidding? I’ve used barter for the last eight years to acquire everything from marketing materials to office furniture to a company car. Right now, I have three barter deals going for a complete website redesign; for a company rebranding (logos, business cards, etc.); and…for suits and ties.

Barter background concept glowing

Bartering can help your company look and act the part.

A former client really wanted to give off the image of being an artsy and forward-looking organization. Its furnishings didn’t go with the image.

So it bartered its marketing services with a furniture retailer — and when clients saw the new, higher-end and more artsy furnishings, they commented on how much they matched the company’s branding.

Companies have not only saved money using business barter but have also created revenue streams out of these transactions.

Take, for example, a small radio station in Florida.

It was having a tough time making revenue to keep its doors open, so the owner decided to trade his product – advertising – for other products and services.

His first barter transaction was to swap advertising time on his radio station for about 1,000 electric can openers.

Most might look at this and see no opportunity, but the owner saw plenty and decided to try to sell the can openers over the air.

After a very short time, he sold them all, and made enough money to keep the station open.

But he didn’t stop there. He decided to continue trading products and services for advertising time. Continuing on this path, he turned that once-struggling station into a company that now generates about $1-billion a year in sales.

That company, by the way, is now called the Home Shopping Network.

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There are two types of barter that a small business can explore: a one-to-one trade or triangulation.

One-to-one trades are the simplest form of barter. You simply go to the most suitable business and propose a trade of your product or service for one of theirs.

One-to-one trades can also allow small businesses to enjoy significant cash savings, because they can trade something at retail for something of equal value in the marketplace.

For example, you might trade something you have to offer for $10,000 of equal retail value that might have only cost you $1,000 to develop. You end up saving yourself $9,000.

The other form of barter is called triangulation. That’s when you involve three or more transactions in a barter deal.

This form of barter comes in handy when the straight one-to-one transaction doesn’t work out because your initial partner is not interested in your product or service.

In that case, you can find another partner with something your initial partner may want. Get control of that product or service and then go back to the initial partner and complete the trade.

For example, let’s say you’re a creative agency and need new furniture for your office. You already tried trading your creative services with a furniture store but it wasn’t interested. So you ask what it would like. The answer: New carpets.

Knowing this, you go off to find a business that deals in carpets and propose a trade of $10,000 worth of carpet for $10,000 of creative services.

If they agree to the trade, you now control $10,000 worth of carpeting and can go back to the furniture store and trade it for $10,000 worth of furniture that you need for your own business.

If you’re going to try bartering, start with someone with whom you have a level of rapport. Maybe you know Web designers, graphic designers, printers or advertisers who might benefit from your products and services. If not, try out your first triangulation deal.

Be flexible and make sure you come up with a win-win proposition. If someone else charges more hourly for their work than you do, you may have to offer more hours of your time for less of theirs.

Think about the things that are missing in your business that you can’t afford to pay cash for but that would help your company grow better or stronger. Focus on going after barter deals for them.

Whatever you decide to do, start small. It will allow you a chance to refine your pitch, get comfortable with the process and become a seasoned specialist in business barter.

Some Benefits Of Using Bartering For Your Small Business

Originally on http://www.freefinancialtoday.com/2011/08/19/some-benefits-of-using-bartering-for-your-small-business/
By: Jules Vandermint

Bartering is becoming ever more popular as a method of commerce. The US Department of commerce says that between 20% and 25% of all of world trade is now done through this sort of method. As such, if you are setting up a small business then it is a good idea to take advantage of this tool. If you do choose to do this, here are some of the main benefits of using bartering for your small business.

One of the main benefits is the fact that barter increases new business opportunities. You can attract customers and referrals who would not have known about your business had you not joined a Barter network. Members of the network will be a lot more likely to choose you over your competition as there will be no outlay of cash and you can instead use Barter credits. This will then increase your cash sales due to the additional exposure and through referrals.

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Barter will also expand on your customer base. You can maintain your current customer base while continuing to expand on it through your network. If you offer a better service to your current customers then they are far more likely to pass on word of your service to others and therefore this will begin to increase your overall customer base.

The lifestyle that you lead will also improve as well. Being part of a network offers numerous benefits one of which will be the option of being able to use barter credits rather than real cash when you pay for different services and transactions. In addition to this, if you find a service that you require that is not part of the network you can then recruited then into the network and get a bonus for doing so.

When you want to join a network it is certainly possible to find numerous ones online. The idea that you do not have to live in any specific state joined a network is also a massive benefit.

These are just a few primary advantages that you will see when you join a barter network.

Bartering Sees Comeback with Businesses

originally on http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd by Tacoma Perry

Small business owners are getting creative during these tough economic times and sometimes that means conserving their cash.

And now, an old currency system is seeing new life and it’s helping small businesses survive and thrive.

Remember back in the day, in school, when you used to trade your cookies for a juice box or chips? Well it’s that same concept that’s allowing small businesses to keep their doors open in otherwise tough times.

It’s not a new concept, but among small businesses with tight budgets and dwindling customer prospects, it’s seeing a comeback – it’s bartering.

“Bartering essentially has been around since the beginning of time, even before your most common forms of currency being coins and then bills. People were essentially trading what they had for what they needed,” said Todd Gerry of Tradebank.

And while traditionally bartering has been done on a one-on-one basis, the concept has gotten much more sophisticated with the rise of bartering networks like Tradebank. Small business owners can offer their service or skill to hundreds of other businesses and get needed services or products in return.

“I get all my landscaping done, painting at my shop, gutters, dental care, I get all my basic necessities – prescription glasses,” said Joe Cox of Georgia Electric Service.

And he’s gotten those necessities without using cash. Joe cox is the owner of georgia electric service – and in exchange for his services, he says he’s able to get about 80% of what he uses on a daily basis. At a time when most businesses are cutting advertising budgets, cox has expanded his.

“I’ve got a billboard downtown, two blocks from the capital that I’ve got 100 percent on trade as well,” said Cox.

According to the folks at Tradebank, you don’t have to barter a lot in order for it to help your business. In fact, they say if you just barter 5 percent of the time, you can increase your bottom line by more than 30 percent.

“You normally have to spend time and money getting cash business, with barter, I actually have to turn away business. I’ve got more than I can do,” said Cox.

Tradebank is just one of dozens of bartering networks out there. They charge a one time retainer fee and a quarterly accounting fee – but both Cox and Gerry say your most important commodity is your service, skill or product.

“Everybody needs electrical work at one time or another. So it’s been a very positive experience for me,” said Cox.

“I think that business owners now more than ever realize that they’re going to have to be innovative in terms of how they bring new business through their doors,” said Gerry.

Experts say the key to bartering is finding the right network for you.

Share and Trade Advertising

Posted on: December 17th, 2009
http://www.advertisingguidelines.com/advertising-agencies/shared-and-trade-advertising

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One of life’s basic rules goes something like this: if it seems too good to be true, it probably is. That can be the case with used cars and blind dates. But every once in a while you’ll find a great deal that actually turns out to be a great deal. Generally speaking, the price of a product or service is directly related to quality. Higher priced goods are better quality, while poorer quality fetches a lower price. Past experience can lead to prejudice, status can determine value, and both can hike costs.

No one should have to settle for second-best because of budget constraints, especially small business owners. Fortunately, there are creative ways to get both great quality and affordable prices. If you have a product to offer, but don’t have a large advertising budget, there are different ways to get the effective advertising you need.

Shared Advertising
The Internet is a great resource of shared advertising. By placing your advertisement on another individual’s or company’s website, and returning the favor, both parties will receive double the exposure and frequency of hits. Again, shared advertising is most effective if it appeals to the same target audience. It goes without saying that an ad for senior’s health products may not get great results if paired with a punk rock clothing store.

Trade Advertising
Also called “bartering”, trade advertising is exchanging your product for advertising space. Bartering for ads can give small businesses excellent opportunity and value beyond what they could normally get, even with a bigger budget. Advertising on the radio, cable and your local newspapers or magazines can give a definite perceived value for your product; but by trading your goods or services, you haven’t spent a bit of cash.

Even more value can be found in an endorsement agreement. Convincing a radio or television host to endorse your product is the best form of advertisement you can get. You will provide the host with your products or services up to an agreed amount, and he or she will say wonderful things about your company on the air. You can’t put a price on this type of broadcasting power.

Bartering Strategy

Posted on December 14th, 2009

http://colllog.blogspot.com/2009/12/how-to-barter-exchange-successfully-and.html

barter

Support bartering when feasible and when it is a fair and satisfactory exchange for goods or services. To barter exchange successfully and save money can be an easy and smooth transaction. This form of trade has been historically documented throughout many eras and in every part of the world. During the modernization of society and the industrial age, many have been lulled and programmed into a credit and money reliant system created by big business. Back to the old fashioned way of using a system that has withstood the test of time. Here are some instructions to consider, that can provide the basic principles, on how to barter exchange successfully and save money.

Draw up some kind of letter of agreement stating the product or services that both parties have agreed upon. The time line and closure date for the completion of these transactions: services rendered and goods delivered and received. A receipt for both parties should be made and filed away.

Find who is willing to reciprocate in a way that is satisfactory to both parties. There may be several venues nearby or online that offer bulletin boards, perhaps in your neighborhood or community, by word of mouth. There are certain designated clubs, such as, computer gaming, outdoor equipment, women’s clothing and cosmetics. Don’t sell yourself short. Find out if the value of what you are offering is equal to the other’s needs. For example: you need your house cleaned for weekend guests and an anniversary party. You are unable to take the time or put in the energy and effort that it would take to make this happen to the standard that you require. Your neighbor’s friend needs a new bathroom upgrade that your husband can do. Services traded by an experienced housekeeper and a professional carpenter and plumber. This is a basic service for service barter exchange. Both parties have agreed and the actual time that each job takes does not come into play.


Neighbors bartering goods and services

Find out if there are any tax liabilities that you need to be aware of. The IRS offers that the fair market value exchange for services, or services for products, can be taxable. This can be researched in more detail for your situation on the IRS website.

Set up a strategy, make a list of what you have to offer in product or services. Look at what your needs are in return. Plumbing, carpentry, painting, housekeeping and cooking are popular service areas. Furniture, baked goods, fresh produce, milk and cheese, clothing, jewelry and artwork are popular products and goods that may be successfully bartered.

Stay on friendly terms. Try to get away from and above the corporate money ideology and mentality. Be a part of a helpful, communal consciousness that can sustain us, plentifully, through good and bad.

Bartering Online!

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http://antique-review.blogspot.com/2009/12/bartering-websites-barter-trade.html

We would like to thank the poster of this blog for mentioning BarterQuest!

Have you ever heard about Bartering Websites? Well, they are really popular right now. Bartering websites started about a decade ago, but with these hard economic times that hitting our country these days, bartering websites are on rise. Indeed people turning to these kinds of sites to save money by doing a something that have been done by humankind since the beginning of times! When you start bartering you are hook! It can be a great hobby or a great way to save money. A DVD for DVD, a Book for a Book, Videogames for Videogames… I’ve even heard on this recession time a house for house! If you have a lot of stuff in the basement that you even use, why not give it a try, you’ll be surprise what people are able to exchange for your old stuff! Their a few sites that give this service and make it so easy! (See the list at the bottom) BarterQuest.com is one of them, the website is free to use, and you’re only responsible for the shipping. Moreover on these kinds of website, if you have special skills, you can even trade services. Indeed they have registered Lawyers, Cooks, Dog trainers and everything in between… recently a guy traded to redecorate an office in exchange of building a website. Here’s a list of trading website offering this service that surely make it easier to practice this ancient way of bargaining – barter trade exchange: www.barterquest.com, www.swaptree.com, paperbackswap.com, peopletradingservices.com.

7 Tips on Barter for Small Businesses

Posted on December 9th, 2009
Originally posted by: bobreis
http://bootstrapping101.wordpress.com/2009/12/09/

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Barter, an $8-12 billion dollar industry, is one of the businesses that flourishes in bad economies, as it offers entrepreneurs many opportunities to acquire things they need and want for no or little cash. Here are some of the things you should know about Barter, a great Bootstrapping activity.

  1. It is the exchange of goods and services for other goods and services with little or no cash involved.
  2. Small Businesses exchange almost every imaginable product or service like medical services, media, landscaping, clothing, food, real estate, legal services, toys, cruises, cars, hotels, etc. The list goes on forever.
  3. The advantages of Barter are:
    - You receive goods and services you need without paying cash.
    - You receive full retail value for what you are trading which enhances your balance sheet, it allows you to utilize your excess capacity and time and it can help you get new customers from the company you bartered with as they will continue to buy from you for cash when they run out of credits, if they are pleased with your offering and service. This satisfaction generates the most effective form of advertising: word of mouth which will get you new customers.
  4. Most Barter works through exchanges who locate the buyers for you and offer the huge range of products you can acquire through the trade dollars you get when you sell your product. This way you do not have to find buyers for your products as they did in the early days of Barter.
  5. You pay a fee of about 12% to the exchanges for their services. Most exchanges charge to join.
  6. All Barter transactions are taxable.
  7. To locate the Barter Exchange that best fits your needs, go to a major search engine and type in Business Bartering.

Bartering booms in recessionary times

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Posted on December 9th, 2009
http://www.news-journalonline.com/NewsJournalOnline/Business…

When the owners of Joey’s American Road Service wanted T-shirts for their staff, they didn’t need money. Instead they bartered services for the shirts and were able to conserve their cash for more important things.”I have always loved working with the bartering system,” said Gabe Magnone, co-owner of the business at 1725 S. Nova Road.

While the idea of bartering — the direct exchange of goods and services — is hardly new, advances in technology have expanded the scope of bartering far beyond the early days of swapping butter and eggs for sugar. Firms now use trade dollars or credits they earn by trading available inventory or staff time for products and services.

Christopher Muller, a professor at the University of Central Florida, said bartering has been used effectively by restaurants and other businesses for years. “When the economy turns soft, many people think of it as a good way to control cash flow,” Muller said this week.

At various times, all restaurants do some kind of trade for goods and services, he said. “It is especially useful for radio and television advertising programs.The restaurant will offer a certain amount of face value dining coupons and the media outlet will run advertising in the same amount, both sides see themselves as winning.”

Bartering is a great way for businesses to get rid of excess inventory during slow periods like the current recession. Many businesses don’t have the cash flow they need or are sitting on excess inventory with no buyers in sight. Paul Rompf, another UCF professor, agreed. “Bartering makes sense if you have excess capacity and you want to reduce cost. It (also) is a way for businesses to acquire goods and services they otherwise might not be able to afford,” Rompf said.