In 1776, Adam Smith suggested that there were three great inventions: written word, mathematics, and money. For nearly all aspects of life, money has become the primary tool to acquire things. It is very efficient trading tool as the markets grow more dynamic and larger in scale. Money simply represents the process of buying and purchasing; we trade our money for something that we eat, use, like, and do. As a trading tool however, there is something that came up before; it is called barter. As a matter of fact, money was probably invented to make the bartering process easier, quicker, and basically more efficient. As old-fashioned as it may seem, bartering is still used now and growing more popular to assist todays’ economic challenges.
In very simple terms, barter can be defined as a direct method of exchanging goods and/or service between two parties or more. The original definition of barter is “something for something”. Although purchasing or selling items in modern days also means the process of bartering money for goods and services, the traditional way of bartering does not involve any money. Think of a doctor who accepts potatoes for checking your blood pressure.
Barter is once again considered a creative way of expanding business particularly for start-ups, services and those with excess time or inventory. It is possible to barter goods and services directly between two parties who understand each other’s needs, so the bartering process is entirely mutual.
In many ways, bartering can help business owner to cut down company’s operating cost in many aspects. A company may have slow-turning goods which require maintenance and storage cost. Bartering can be excellent survival strategy because the company can trade those goods with faster-turning goods or even other valuable resources such as new equipment for the office, advertising, computer upgrades, better lighting, or maybe new vehicles. Expenses for those improvements are normally covered by cash flow, but the slow-turning goods remain in the inventory without giving much profit. This way, the company can conserve cash, reduce operating cost, yet it is still able to sustain growth.
Finding a person or another company to trade with is now easy as well. Numerous business startups are putting online ads for bartering on advertisement websites. It is possible to trade directly with a person or company, as long as both parties have mutual needs, however that can be a difficult and time-consuming experience. By belonging to an Organized Barter Exchange this can all be steam lined, easy and fun. When small business or new entrepreneurs have less cash to spend, bartering turns out to be effective strategy to keep on expanding without additional cash expenses.
While free online service is certainly efficient for bartering, local networks and barter companies can even do the job better. To put it to context, barter companies can act as a third-party between two or more companies. The best thing about barter company is that it has continuously growing members, so the benefits for companies go beyond conserving cash. With more members, every company has access to numerous bartering members, meaning there is also the benefit of networking and bringing in new customers.
As mentioned earlier, bartering can save money without restricting business expansion and improvement. But with a vast network, there are also more choices of goods and services to trade for and perhaps even items you never thought were on trade. Besides reducing inventory and cutting maintenance cost, a barter network opens the door to get exact thing that your business needs. It can be renovation, advertising, accounting, and more. Working with a barter company can also save money on marketing campaign. It takes you into a network of buyers and sellers, creating new potential customer base. If your product gives great value for several companies you trade with, there is a good chance that other companies are interested in buying your products.
Most businesses have excess of inventory. A professional (Lawyer, Doctor, Accountant, Chef, or even Artist) have empty time slots; some hotels are only full during summer; airlines have empty seats; restaurants have empty tables; wholesalers have unsold items. Your company maybe having the same issue at this moment. As time goes by, unsold items are no longer profitable, so bartering them before it is too late may provide better values than cash flow. Within a bartering network bridged by a barter company, there is a greater chance of a successful exchange.
The invention of money has successfully addressed the complexity of bartering, primarily the relative value of goods and services. Using a barter company like Tampa Trade Brokers, you not only control how much barter you receive, you also guarantee you get a return in value for your trade. Tampa Trade Brokers provides access to over 30,000 other likeminded businesses that see the value in barter both locally and nationally. It takes minimal action on your part, fill out the member application or, use the contact us link to schedule an appointment. One of our experienced Trade Brokers will be in contact with you within 24 hours to discuss how barter will work for your business and tailor a campaign based on your needs.