Have you ever thought about how you can use bartering to help your business? Barter has a great value for businesses if you take full advantage of the opportunities provided you. And best of all, it’s not overly complicated; you just need a sound understanding of value to become a master barterer.
Determine Your Leverage Position
The first step in becoming an expert at barter is to determine your barter leverage. You need to ensure that there is a market for the products or services that your business provides, which is something you should have been thinking about from the very start, of course. With a market for what you can provide, you’ll be able to barter profitably.
After this, then think about all the things you want or need for your business. Maybe you need technology supplies, office equipment, furniture—whatever it is that your business needs and other businesses in your area can provide.
Bartering for Goods and Services
How does this work? Think about it: the products you make and the services you provide cost less than their retail price. The same is true for other businesses. Retailers have lavish markups for their products, and even when their prices are brought down due to negotiations or promotional pricing, they’re still making a respectable profit on their products. It might not be the full markup of 100 to 300 percent, but it can still easily be between 30 and 50 percent.
When you barter with a retailer, you should put forward a direct exchange of your product for theirs. Offer an equal dollar amount of your goods or services, which they need, in exchange for their goods or services, which you need. Emphasize that you’re willing to make the trade at full retail value, which is a very effective way of getting other businesses interested in bartering with you. When you barter at full retail price, it’s a way for the other business to make their full markup, and all the while you still save money because you’re likewise trading your product at a markup.
As long as the other party has a use for your product, there’s a good chance they’ll be interested, even if it’s not something they need right away. It can always be put aside for future use.
The Advantages of Bartering
Following these simple steps can win your business huge rewards. Because you’re trading at retail price instead of the cost of actually creating your products, you can save as much as 80 percent on the items you barter for instead of purchasing. Moreover, it allows you to not worry about cash at all. You are able to get things you need with money you’ve already spent.