It often takes a while for new clients of a barter exchange to fully comprehend the economic benefits of this unique relationship. Some business people are even reluctant to become involved with an organized trading company because they don’t really understand the nature of barter transactions. Quite frequently, a prospective client objects to the program, claiming that he needs cash and can’t afford to trade his merchandise or services. However, an honest, open-minded analyst of most commercial activity will reveal that every business goes through periods in which it has some degree of excess capacity, or is saddled with some unproductive assets. Also, every business has some immediate, legitimate needs which will invariably require an outlay of cash. These needs could range from items such as printing (stationary, business cards, letterheads, forms, etc.) to store remodeling and maintenance; and from media advertising and sign painting to sales promotions and employee incentives - in other words, anything required above and beyond such basics as rent, utilities, and payroll.
While the usual method of acquiring these needed extras is to either write a check, or pay cash for the services, there is a better, more profitable way available.
As an example, let us assume that you need to purchase $400.00 worth of printing work. In accordance with the traditional way of doing business, you would place an order with your local printing company, and when the job is complete, write a $400.00 check to them. This transaction - while necessary - has actually decreased your firm’s available cash reserves.
Now let us consider the same situation, but this time we’ll outline a barter scenario.
You still need $400.00 worth at printing, but instead of subtracting from your cash pool, you utilize your IMS membership and deal with one of the printers in our barter program. This allows you to keep your $400.00 in the bank, because IMS will actually create some new profits for you. We will purchase some of your existing merchandise - possibly even some unproductive, hard-to-move items, such as last year’s models, trade-ins, etc. - and we will purchase these at your normal list price, giving you a full profit margin on the sale. You can then use these newly created incremental profit dollars to pay for your printing work.
This same procedure can be followed to fill many of your other business and personal needs, but the implementation of this program is dependent upon you. You must pick up the ball and get into the game, and you can begin by reading these articles in the Editor’s Choice on the IMS website. You need to become aware of all the products and services that are already available to you through barter, and you should feel free to call our office for help and for further information and ideas. Our staff is ready and willing to show you how to put your trade dollars to work most productively.
Always remember that clients of IMS want to deal with other clients whenever possible. Therefore, you have a built-in market of hundreds of referral customers. In most instances, we can accept as many of your goods and services as you are capable of providing on a trade basis, and through every transaction, you will expand your sales and customer base, increase your profits, and keep your existing cash in the bank. As you can see, barter really does increase your cash flow!