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Beyond The Limits Of Cash or Credit

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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.

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