Top 9 Benefits Of The Barter Exchange System
Bartering refers to the trading of goods or services between two parties or more. This renders money or any kind of currency obsolete as no via media of the same value or medium of currency as the goods or services sought, is required in this kind of cashless transaction. The barter trade system dates back to a time in our history before proper currency even existed, and is the oldest known form of trade and commerce. In fact, it is quite amazing to see how this system of exchange, though simple, has managed to withstand and continue to be relevant and efficient throughout the ages! In simple words, bartering can be described as a boundless hack for any small business because it is a means to draw dynamic services, products, or inventory at a nominal charge while also building collaborative partnerships. Barter exchanges back-up clients and companies in a local economy. It kindles small businesses by moving services and products available for other facilities or goods with higher value because it is not as available to the business.
The many benefits of the barter system of exchange
Given below are the numerous benefits and advantages that the barter trade system bestows on all the members of the barter network of trade and exchange:
1. The barter trade system helps in the boosting of your sales
The barter system of trade aids the promotion of your business among potential customers such as hundreds of other businesses within the barter trade network. This, in turn, will help increase your sales.
2. Bartering helps you to preserve your cash reserves
The whole premise of the barter system of trading is to encourage cashless transactions, which in turn, helps you save the cash you would have otherwise had to use to pay for the product or service availed. It allows you to pay for the goods or services you need with any goods or services that the seller is seeking, thereby resulting in a transaction that allows for mutual satisfaction without having to use any form of currency. Thus, bartering aids in decreasing overhead costs, operational costs, and cash flow, which is highly beneficial to the business as they have a constant requirement of cash and bartering helps preserve it.
3. It helps you achieve an increase in your profits
All the businesses that are part of the barter network make additional sales within the system which are exclusive of your regular sales. So, you end up with an increase in your profit margin due to the increase in your sales from the addition of new customers. An increase in sales and a decrease in costs would result in a significant rise in income and you will be able to see your bottom line improve dramatically!
4. The barter trade system aids in the easy inclusion of new customers
The barter network offers a very large customer base, which in turn, provides a wide range of trading options in a large market. Further, members of the barter network can very easily barter their products or services to each other, thus expanding their reach in a really efficient and economical manner, putting in minimum effort and gaining maximum yield. Members of the barter network usually look at fellow members of the network when they require to make a purchase. Once a link with you is established or forged, they will, in all likelihood get in touch with you again whenever they are in need of similar products or services, thus helping you build a loyal customer base.
5. It helps in boosting your purchasing power
Cashless transactions lead to more cash saved and preserved and as a result, more cash in hand, thereby increasing your purchasing power significantly. Used as a marketing tool, bartering provides potential buyers with sturdy purchasing incentives in the market. Also, when used as a financing tool, it can be used to pay the required services and goods instead of money directly with own services and goods. Further, the scope for the direct exchange of goods and services is attractive to many. Barter doesn’t stipulate only goods for goods exchange. One could trade goods for services and vice versa. The icing on the cake is the absolute redundancy of international currency and thereby the elimination of the risk of foreign exchange. Not to mention that barter comes to the rescue when there is limited trust or sketchy information about the creditworthiness of trade partners. Barter enables optimal allocation of resources by the exchange of goods in quantities that represent similar values what's more is that the barter system can help economies achieve equilibrium by virtue of demand equalling supply.
6. Bartering enables you to shoot past all your competitors
Bartering helps you to widen your customer base, improve cash flow, increase profits and generate additional sales, thereby enabling you to shoot past your competitors have an edge over them.
7. It helps make your inventory management better
The bartering trade system allows for a significant improvement in the management of your inventory by transforming surplus inventory into products or services of considerable value. You can avoid the liquidation of your superfluous inventory through extreme discounting. Bartering also provides an efficient and gainful way to use your inventory on a regular basis, if your fledgling business makes it prone to seasonal markets. If your business practices seasonal markets, Deshpee Barter proposals a profitable means to use the inventory on a regular basis. Deshpee Barter provides a system to put that additional to use in profitable means. Deshpee Barter achieves this objective by matching your services and products with businesses looking to procure them on trade.
8. Bartering aids you in making purchases at a discount
In most instances, what businesses are looking for is more or increased purchasing power. The members of a barter trade system usually prefer to sell their products or services so as to earn barter trade-credit points. Calculating the total cash value of these barter trade-credit points helps you to gauge the purchasing power or actual leverage that this system of trade grants to your business. The cash value of each barter trade credit is equivalent to the cash you would directly have to spend to earn that trade credit point. Thus, by utilizing your new source of income, what you are basically doing is that every single thing you get by bartering, you are getting at a discounted rate that can range from anywhere between 20% to 30%.
9. The barter trade system aids you in increasing your productivity
The barter trade system enables companies to put their employees, equipment, and inventory to proper, efficient as well as effective use, thus facilitating the growth and creation of fresh revenue that would otherwise, in all probability, not be available. This additional revenue can be used towards the purchase of services, new equipment or even raw materials to help support your business and make it flourish. Typically, a barter exchange facilitates and aids the exchange of those assets of a company that is not very productive with goods or services that are of more value, comparatively.
So, would you like to join the barter trade network now? What are you waiting for?! Join the Deshpee family today and enjoy all the numerous benefits that bartering gives you. Visit the Deshpee Barter website for any inquiries you have or information you may need. We have also listed the services and products we would like to barter for on our website and if you happen to provide those goods or services, we would love to trade with you!
You could do all of the above or just visit us at Deshpee Barter and let us take care of your bartering needs for you. We bring to the table affordable, quality services in exchange for your products or services. So, if you seek to get what you want, look no further than Deshpee Barter. Help us help you experience the joys of trading in a cashless market. Bartering via Deshpee Barter can help a small business to portray the image of being a huge business without the cash-costs incurred by much larger businesses. We help businesses put equipment, inventory, and employees to efficient and effective use, developing new revenue that would not have been available otherwise.
That new and efficient revenue can be used to finance the purchase of new equipment, raw materials and services to support the business. Essentially, a business’s less productive assets are exchanged for more resourceful assets or services via the help of a barter exchange. Barter members at Deshpee Barter can economically expand their reach by marketing their services or products to the barter network members. The larger client base of members offers a huge market and a varied range of trading options.
So, if your budget is tight or if you are piloting some new ideas, get creative and give a thought to bartering with another business. There is vitally no limit to the diversity of assets you can barter with, as long as it's resourceful for all the parties involved. Bartering has been in the scenario around for a long time and is still as essential currently in the events industry.