12/16/2008
What’s Happening In Today’s Marketplace...The Use Of Trade Exchanges
& Corporate Barter Companies
Part 1
Bakery Does 30% Of Annual Sales Through Barter
The prevailing advice to business owners, when asked how much barter
they should do, is 5% to 10% of sales. The better answer should be:
“Whatever percentage makes financial sense for your company.”
Case in point: Michael Garzouri, owner of the Killer Baking Company
in Northern California, says he does 30% of annual business in
trade. Garzouri acquired his ovens on trade, through the IMS Barter
system. He says he’s always looking to barter, because “I’m paying
for the acquired products or services with my brownies — at my
cost.” It’s impossible to buy at a better price.
Florist’s Gift Baskets Filled With Acquired Barter Product
Richard Salome, a Florist in New York, maximizes his profits by
acquiring gourmet chocolates on trade...and then uses the chocolates
in his gift baskets. He also looks for other products useful in the
operation of his florist business, like hotel rooms when attending
flower auctions, shipping labels, and dental care for all of his
employees and family.
Barter Takes On New Prominence In Corporate Marketplace
A
recent story on AdWeek.com reinforces the changes taking place in
today’s marketplace. Manufacturers and wholesalers, faced with
slower sales, are experiencing excess inventory headaches.
Result: They’re becoming pro-active and talking openly to their ad
agencies about solutions that include barter — even incorporating it
into the RFP (request for proposal) process.
When it comes to the spend-down of trade credits, traditional media
is still the core offering. But we are beginning to see digital
media requests for a company’s use of trade credits, which is sure
to grow in the future.
And globally, larger multi-national clients are wanting to apply
trade credits accrued in one region of the world to be transferred
and used in another part of the globe.
U.S. Retailers Bartering To Move Overseas Products
Unsold inventory acquired “on the cheap” from China — everything
from clothes, jewelry, TVs and furniture — is quickly being moved
out by U.S. merchants into countries where they are not bound by
contract restrictions. That way retailers will often receive a
higher price for the products, than if selling to domestic close-out
firms and liquidators. |
