Manufacturer Used Barter
For Quick Turnaround
glass manufacturing company located in the Southwest, although
producing good products, was forced into a Chapter 11 bankruptcy due
to severe management problems. But under a new management team full
of enthusiasm, and with the help of a seasoned barter consultant,
the company was turned around and �back on its feet� within two
did such a quick turnaround happen? Certainly having a good product
helped. But sales potential always existed, so that wasn�t the
answer. It was due to a series of decisions by a hardworking 3-man
team, whose dedicated overtime efforts boosted the company�s sales
50% within a 9 month period � to over $3,600,000.
of their smartest moves was realizing that barter could hasten their
recovery. They committed to utilizing up to 11% of their gross for
bartering, as long as they felt the trade was well spent. Lacking
experience in this area, they retained the services of a well-known
barter consultant who was paid in trade dollars along with a promise
of stock (an equity position) in the company.
Here�s what the consultant suggested to the new management team:
�Work on the obvious needs first and get as much done on trade as
possible.� In analyzing the situation he was aghast to find that
this company had never produced any catalog materials or brochures
to showcase their excellent products, even though their method of
sales was primarily through distributors.
This meant that sales were only made to distributors within driving
distance of the company�s plant. Because their products could easily
be shipped across the nation, the first priority was to design
professional four-color brochures.
Immediately moving on this project, they produced the desired
materials by using the members within the exchange, i.e. a
photographer, copywriter, typographer, color separator and printer.
With these selected pieces in hand they then attended conventions,
as well as instituted a direct mail campaign to a select group of
Next, the consultant worked on improving the company�s financial
statement by boosting their assets through the acquisition of real
estate and trust deeds, with a mix of trade dollars and the
company�s products. His 30 years of experience as a real estate
exchangor provided the company with an invaluable service in this
Deferred maintenance problems were also addressed, including
plumbing, electrical work, and a new face lift for the
administrative offices. As well, the mundane everyday expenses were
dealt with in an expeditious manner ... using trade dollars whenever
Such things as simple catering for their marathon management
meetings, the handling of company travel expenses, and the use of
perks in the form of gift certificates to select restaurants in the
area for the hardworking staff were all obtained through barter.
With determination, effort and an assist from barter, the company
made a remarkable turnaround from bankruptcy to the possibility of