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Barter Enchances Cash Business, Not Replaces Cash Business

by XYZ Barter on November 30, 2009

I’m writing this post because often times the first objection to barter is “well it won’t pay my rent or my credit card or car payment.”

The response is that barter is not meant to replace your cash business. It’s meant pay you in times when you have NO CASH business coming in. It’s a supplement, an addition to cash business. In other words it meant to keep you from getting $0, zip, nada. Unless you are operating at 100% capacity in a cash, then you have room to barter that excess capacity (time or inventory) until your business grows to the point where you can’t handle any more non-cash business. And that’s a good problem to have (at least in my personal opinion).

A hotel that has 10 vacancies on any given night gets $0, whereas bartering those vacancies will bring in full retail in Barter Dollars to spend just like cash. So you have a choice, get nothing or get barter dollars that you can spend on with another companies under utilized capacity. It’s a win-win.

So in essence this assumption is merely an error in the understanding. And unfortunately this error costs a lot of business owners a lot of money in referral business, higher cash prices for items they are purchasing anyway and lower profits and cash flow.

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