Barter Companies And Small Business Trading by Terry Lamb

If you work with a barter company, it will be easier for you to both find a larger target market and to maintain your current loyal customers. Such a model is called "incremental business"-- the ability to find customers who will choose you over your competitors. The barter system will bring you new customers by allowing them to pay with products or services and thus saving them cash, something almost any business aims for.

You will still get paid your full retail prices when selling your goods and services to barter customers. Every season our customers seek up to date merchandise so retailers easily move inventory. Through the use of barter companies you will find willing buyers that will help you to cut back on the heavy cost of advertising, while moving surplus inventory without the need for costly discounting.

Barter companies coordinates the selling of surplus Inventory by negotiating for you to receive either the going price in the marketplace or your normal selling price to distributors. This allows you to maintain your current pricing integrity and upgrade your return on investment.

Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Trade exchange should be considered a marketing tool, not a tax tool. Barter transactions typically involve companies with unsold goods on retail.

Larger enterprises and smaller firms too are making use of bartering nowadays to obtain and sell both merchandise and services. It is defined as exchanging products and services without any money changing hands. While such trading has existed both commercially and in deals between individuals for thousands of years, it has become significantly more popular since the later years of the 1900s.

It is a surprise to note that bartering in the world arena has proven to be a complement to economies based on refined marketplace and a way to remain in existence in declining economies. For example, in the United States, the dollar value of barter transactions grew, on an average, at approximately 16 percent annually for eleven years since 1987. On the other hand, nearly 76 percent of business transactions by major companies in tainted economies are on barter basis.

Every day, both materials and services are traded between small businesses. In a nutshell, this is small business marketing. A business arrangement is considered consummated if one company consents to exchange service or goods with another in return for something of similar value.

About the Author

If you work with a barter company, it will be easier for you to both find a larger target market and to maintain your current loyal customers. The barter companies assist you with bringing other business's excess inventory to your customers, thereby slashing the costs of advertising.