Why Bartering Is The Key To Better Business

By John Perry Pellegrino

The concept of bartering has existed long before modern business models. In its simplest form, bartering is the exchange of one good or service for another. Instances of this trade system date all the way back to 6000 BC, with some records pointing to the ancient Mesopotamia tribes, later adopted by the Phoenicians.

Precursors to real monetary systems allowed for equal, fair trade for necessities, and civilizations have stood by this concrete method of exchange for centuries. 

The process could also be scaled up and down; salt for fish, or a ship for an army. Both sides benefit from a barter, as long the terms of the deal are equally established on both sides.

Modernized Exchanges

Today, International Reciprocal Trade Association (IRTA) estimates the current worth of the industry is at a range of 12 to 14 billion dollars. About 50% of this amount is derived from retail trade exchanges and corporate bartering services.

Tradebank is a cashless commerce exchange, meaning we promote your products or services to a vast marketplace of members. When you join our network, we introduce your business to hundreds of new customers without requiring advertising or promotion expenses. Tradebank constantly monitors for new customers and expand your trade opportunities; ultimately resulting in a larger market share.

With a barter exchange, there’s a near endless amount of zero-cash transaction opportunities available; all without the pressure of sole 1-on-1 trades.

If you pay cash for your day-to-day services, those transactions can most always be converted into a barter opportunity. 

Put your excess inventory to use

Oftentimes, businesses will have excess inventory laying around, or unused products. These products present a unique barter opportunity. By offering these products through a barter exchange, companies can sell something they deem “low value” and offer it as high value to another member.

Again, the worth of those products is converted into trade dollars, which you could then spend within the marketplace for any product or service.

Gain Brand New Customers

If you’re a small business, acquiring new customers can be a pain point. It requires upfront and long-term marketing costs. How do you dedicate time in connecting with potential customers? Where do you find them?

Many of these questions can be answered and solved by joining a trade exchange. We feature hundreds of clients within our marketplace and create ads and campaigns for your company. It’s essentially free marketing. 

Not to mention, frequent trading will most always result in a business relationship. The more you trade with a member, the more trust you build with them. If they deliver quality products and services, you’re more likely to recommend them to a peer. 

These digital campaigns and word of mouth recommendations can blossom your business. 

Incremental Revenue

Companies with idle inventory often find that trading provides a higher net value, compared to liquidation. By trading their inventory to another member of the exchange, they receive a monetary amount that’s relatively close to it’s dollar value. 

Those trade dollars can then be allocated to other business expenses.

It’s important to remember that exchanging unused assets for trade dollars can often save large amounts of incremental revenue.

Compensating Employees

Companies often face difficult times and have to waive a significant portion of employee compensation and bonus opportunities.

If you’re struggling to reward employees that perform, consider bartering your products or service in order to pocket cash along the way.

Summary

If you haven’t considered joining a barter exchange, you’re missing out on serious cash savings and trade opportunities. Trading products and services engages your community, puts motion into surplus or unused inventory, and exposes your business to potential new customers and sales. 

At Tradebank, we scout your wants and needs, and guarantee new business opportunities. Cashless commerce is a smart, and flexible business decision in today’s modern age.

For more information, see what Tradebank can do for you.

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