Why Barter?
Barter, as most people know it, is a trade between two parties with no cash changing hands. Since both parties are making a new sale, the cash outlay for the merchandise they received is equal to the wholesale cost of the merchandise they sold. In effect, barter allows you to acquire products and services at your wholesale cost.
EXAMPLE: A jeweler sells a watch for $500 and his cost is $250. He needs to purchase $1000 of catalog printing. He has two options:
- Write a $1000 check for the printing.
- Trade two watches for a value of $1000, with only a cash outlay of $500.
Which Way Would You Choose?
NEXT: Expand, Improve
Member spotlight
Name:
Larry J. Cohen
Company:
Owner — Bel Air Construction, Inc.
Member since 2003
 |
I find Barter is a supplement rather than a replacement for existing cash business. In fact, I use my barter to buy advertising for more cash business!  |