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WHAT IS BARTER?
Barter or trade is a powerful tool that represents a solution
for companies with available inventory or services. By accepting payment
in trade dollars instead of cash, a business maximizes their efficiency by
increasing inventory turnover or billable hours. Using the trade dollars
earned, that company can purchase goods or services they want – without paying
cash.
A Multi-Billion Dollar Industry
According
to the International Reciprocal Trade Association (IRTA) estimates just in the
U.S., over 470,000 companies actively participate in barter for a total of over
$12 billion in annual sales. Over 65% of the corporations listed in the New
York Stock Exchange are presently using Barter to reduce surplus inventory and
bolster sales and to ensure that production facilities run at near capacity.
The U.S. Department of Commerce estimates that 20 to 25% of world trade is now
barter, and corporate barter is now a 20 billion dollar industry. Barter
continues to carve out an important place in the U.S. and world economy.
HOW DOES BARTER WORK WITH A TRADE EXCHANGE?
A Trade Network, Inc. Consultant works with you to bring your company new sales
and increased market share, to move available inventory and to minimize cash
outlay for everyday business expenses.
Clients of an exchange use trade dollars, instead of cash, to handle their
transactions. Trade Network, Inc. provides you with an alternate
distribution network. You can charge retail value for goods and services in
trade dollars, instead of selling them for reduced rates in cash or having them
go unsold.
An exchange acts as a third-party record keeper, providing clients with monthly
statements that reflect all trade purchases and sales and show the current
trade-dollar balance.
How Barter Works:

WHAT ARE SOME BENEFITS OF
TRADING?
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Barter Generates New Customers,
allowing you to expand your market and maintain your cash paying customers.
This is incremental business – customers who bypass competing businesses to do
business with you.
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Barter Conserves Cash and Increases Profits:
Barter creates new customers because buyers are motivated to pay with their
products or services and save cash. Simply put – if you had to purchase a
copier for $1000 – what would you rather do? Write a check or pay with an equal
amount of your product/service at its normal selling price to a new customer?
Most businesses prefer to trade and conserve cash.
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Barter Moves Excess Inventory:
Retailers: Retailers must keep their inventory moving. Each season, customers
shop for the most current merchandise. Trade Network, Inc. will bring you
buyers to move excess inventory, eliminating the advertising costs and heavy
discounting otherwise needed to accomplish this.
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Manufacturers/Wholesalers: We can coordinate the
selling of your surplus inventory, while helping you obtain the best possible
prices for your products. We negotiate for you to receive either the going
price in the marketplace or at least your full normal selling price to
distributors. This allows you to maintain your current pricing integrity as
well as upgrading your return on investment.
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Increase Productivity by Filling Downtime and Unused
Capacity:
Service Business: Increase billable hours! If you are not at 100% capacity
twelve months a year and can handle new customers, we can help you fill your
idle time with new business opportunities. And now you will have trade dollars
to purchase what you need.
Hotels: Suppose you have 10 vacant rooms at $100 a night and you need a
new brochure for $1000. Barter provides a way for you to buy your brochure,
fill your rooms (at your cost on the rooms) and maintain your cash.
Manufacturers: If you are currently operating at 90% capacity, going to
93% changes very little in the cost of production. Wouldn’t it make sense to
take on a new barter customer to cover the cost of next year’s product catalog?
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Networking Expands Your Customer Base:
Barter customers will bring you all of the cash referrals that your present
clients bring. You will gain new cash paying customers too - as long as you
give your barter customers the same great services and pricing as you offer
everyone else.
HOW DOES TRADE NETWORK, INC. MARKET YOUR BUSINESS?
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Our trade brokers phone member businesses that
regularly purchase your products or services and facilitate an introduction.
Our brokers become part of your sales force.
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We place your ads in our monthly newsletters.
Newsletters are direct mailed to our client base.
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We send frequent emails where we sell your
products and promote your services.
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We provide a free listing in our membership
directory.
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We provide regional and national exposure to businesses
looking to expand their horizons. We do this through the "Barter
Banc” which is nationwide.
Much of the content in this section has been graciously provided to us by Debbie at
Barter Business Unlimited, Newington, CT. Thanks to BBU for their permission to share ideas.
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