Trade Exchange Membership Is An Important, Appreciating Business
success requires having some common-sense and using your ability
to look at a situation from a slightly different perspective.
let's look at WHY you should not only be actively trading, but
spending more time on your bartering strategy and efforts. It
all begins by ascertaining the true value of your trade exchange
membership. A heightened awareness will be stimulating!
as all markets become more saturated with goods and services,
new customer acquisition, especially in the cash marketplace,
becomes increasingly difficult. That's why the new mantra in marketing
and sales is lifetime value.
Is The Lifetime Value Of Your Trade Exchange Membership? First,
let's define this value. Lifetime value is a function of frequency
of sales (annual) multiplied by the gross margin (your barter
cost) multiplied by the years of duration (your active participation
in the exchange).
In other words, if, as a member you're making ten barter sales
a month and your gross margin is $50 per sale ($500/month or $6,000/year)
and you're a member of the exchange for twenty years, the value
of your trade exchange membership is $120,000.
as this aggregate figure is, it's just the "tip of the iceberg,"
because these satisfied customers you're successfully and happily
serving will become a conduit for more business through word-of-mouth
advertising. Bringing you additional trade and cash customers.
If only one brings you another happy colleague the value of your
trade exchange membership increases to $132,000.* (Actually the
value of the membership will be even more because we're not considering
any continual referrals by the happy colleagues.)
The value of your trade exchange membership is really what you
choose to make it.
given the enormous advantages of doing business in this manner,
and looking at it in this new context, you've probably realized
that your membership could well be one of your company's most
valuable assets. because it's an "appreciating asset."
Your figures may be considerably higher if you do more than $6,000
a year in gross margin barter sales, or trade for more years than
in our example, and/or get more referrals than suggested.