Benefits of Barter

Benefits of Barter

Aloha Barter Group (ABG) advertises your business to dozens of local and hundreds of national businesses who are all potential customers, and facilitates incremental business over and above your existing cash-paying customers. Businesses use ABG to purchase their needs with their trade dollar account or credit line, and pay for their purchases with the additional sales of their goods or services. Obviously, if you do a good job for another Barter business, they will undoubtedly refer their cash-paying friends & associates to you.

Businesses that routinely trade for products and services will bypass your competitors to deal with you because you take trade/barter dollars. This is the BEST loyalty program ever!

In many cases what businesses want is stronger purchasing power. By calculating the cash cost of obtaining trade dollars, you can figure out the purchasing power of trade for your business. The cash cost of each trade dollar is the cash you directly invested to earn it. It is a combination of your cost of goods sold and the trade fees that trade dollars cost you to get and spend. If your cost of goods sold is 50% then every trade dollar you bring in costs you $0.60 ($0.50 for product and $0.10 for trading fees). Overhead costs like rent, utilities, and labor are not included in the equation because you would have to pay them whether you had trade income or not. How much more profit do you have when you are buying with trade dollars? By leveraging your new source of income, you are essentially buying what you get on barter at a 40% discount.

Cash savings are one of the primary benefits of barter. Barter allows you, as a business owner, to pay for what you need with your own goods or services, allowing you to conserve cash and working capital for other purposes. Making purchases with your Trade Dollars means that payment is made with sales made to new customers from ABG. Bartering helps reduce cash outlays and reduces overhead and operating costs. Many of the services offered through barter, such as accounting, cleaning, corporate gifts, printing, restaurant dining and travel relate to overhead costs. Obtaining these services through barter saves you cash.

ABG members can cost-effectively expand their market reach by marketing to the exchange network’s membership base. The membership base provides a large market and a far higher selection of trading options. Aloha Barter Group has nation-wide resources and a network of thousands of businesses in trade exchanges Internationally. This provides strong marketing and trading options through its directory service.

Expanded customer base, expanded geographic markets, additional sales, improved cash flow and increased profit; increase your advantage over your competition. Bartering through a trade exchange can assist a small business to portray the image of being a big business without the cash-costs incurred by much larger businesses. For example, barter enables businesses to execute additional marketing and advertising to gain more sales without spending cash.

Bartering also allows you to improve inventory management by converting excess inventory into valuable products and services. If you barter, you avoid having to liquidate excess inventory through drastic discounting. If your small business experiences seasonal markets, barter provides a profitable way to use the inventory on a regular basis. Using Aloha Barter Group provides a system to put that excess to use in profitable ways. ABG accomplishes this objective by matching your products or services with businesses looking to purchase them on trade.