Monday, August 18, 2014

Is Bartering Right for Your Business?


    
AMERICAN EXPRESS - ARTICLE ABOUT BARTERING

OPEN forum by American Express - Is Bartering Right for Your Business?
Mike Periu, President, Proximo, LLC

JULY 23, 2014 Cash is king, but what do you do if your business needs something desperately and can't afford it? Take a cue from the past and barter your way to what you need. Bartering has existed since the beginning of history, where people exchanged goods or services. "It predates the existence of money and is still used extensively today. American businesses alone barter an estimated $1 billion worth of time and products every month.

Why Businesses Barter

Use excess capacity. Many small businesses operate at a fraction of their capacities. Overall, U.S. businesses currently operate at around 79 percent capacity, leaving too much time in idle hands. The closer your business can get to operating at 100 percent capacity, the more profitable it should be under normal circumstances. Bartering is a way to use that excess capacity so it doesn't go to waste. If you spend one-third of your time surfing the Internet due to a lack of work, then why not barter that time for something else? You won't make as much money as if you actually sold your services for cash, but bartering is better than nothing.

Grow your new business. Many professionals like physicians, lawyers and accountants use bartering when they launch their own practices. It's a way to capture new customers that don't know you or may be skeptical for other reasons. By accepting barter as a method of payment, professionals achieve various goals. First it breaks down the barrier of resistance to spending money with someone you don't know yet. It also provides an opportunity for these customers to get to know the new guy in town. This usually leads to word-of-mouth marketing and a successful practice.

Bartering isn't for every business, but is worth considering if you're looking to grow, or are currently going through a slow period.  If you want to start bartering but aren't sure where to start, consider working with a bartering exchange. ITEX is one
of the largest bartering networks.  



Happy Trading.
  ITEX Connect Trade Save Logo  
Karen Kelly

President and Problem Solver
Confident Currency Inc.
d.b.a. ITEX in Chicagoland
847.755.3000
 
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