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Barter Companies And Excess Inventory

by Terry Lamb

Barter companies allow you to expand your market and maintain your cash-paying customers. This is incremental business-customers who bypass competing businesses to do business with you. Barter creates new customers because buyers are motivated to pay with their products or services and save cash. Most businesses prefer to barter and conserve cash.

Barter customers pay retail prices, so you get the full value of your goods and services. Retailers must keep their inventory moving and our customers shop for the most current merchandise each season. Barter Companies will bring you buyers to move excess inventory, eliminating the advertising costs and heavy discounting otherwise needed to accomplish this.

Companies involved in barter trade help you in the sales of your surplus inventory at either the current market price of the product or the price at which you sell to distributors. Thus you are in a position to maintain your current pricing integrity and also enable you to fetch better return on your investment.

Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Trade exchange should be considered a marketing tool, not a tax tool. Barter transactions typically involve companies with unsold goods on retail.

Barter is becoming a very popular method for companies both big and small to trade their products and services. Barter is the direct swapping of items or services without the use of the intermediary we call money. Bartering used to be very popular, but with the introduction of money it became less so.

Surprisingly, bartering has proven worldwide not only to complement the sophisticated marketplace economies, but also to be a means of surviving moribund economies. In the U.S., for example, the dollar value of bartered transactions grew at a rate of roughly 16 percent per year in the 11 years after 1987. By contrast, in corrupted economies, bartering has an essential role in almost 76 percent of business dealings that involve major companies.

Every day, small businesses exchange goods and services. This is known as small business marketing. Such bartering deals happen when a company agrees to offer a product or service to another in exchange for a second company's product or service of like value.

Barter transactions typically involve companies with unsold goods on retail. The barter companies coordinate the selling of surplus inventory by negotiating for you to receive either the going price in the marketplace, or your normal selling price to distributors. This allows you to maintain your current pricing integrity and upgrade your return on investment. Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. The trade exchange should be considered a marketing tool, not a tax tool. In a nutshell, this is small business marketing.

Published August 20th, 2008

Filed in Marketing