Barter Networks Save Small Businesses
Posted in Small Business | 10 views
In 1998, Stan Thomas thought his truck-side marketing company wasn’t going to survive. His business, which uses a special adhesive to fix vinyl ads to the sides and backs of trucks, looked deep into debt. Cutting payroll and expenses didn’t help – joining a barter network did.
A savvy business owner, Thomas used barter, a cashless system of exchanging goods and services, to boost his business. “I took barter from a casual asset to an integral part of my business,” says Thomas, “and it did save the company from bankruptcy.” Today, Magellan Transit Media is a leader in its market.
Barter, the world’s oldest economic system, isn’t some antiquated throwback, but a thriving solution to today’s economic troubles. Modern companies pay commission fees to join sophisticated business-to-business networks. They receive trade credit based on the dollar value of their products, then use their trade credits to “purchase” goods and services from other companies. Business owners don’t have to use cash, so they can reduce costs and avoid debt while still supplying their companies.
Thomas joined a corporate barter network called NTA Trade, the corporate barter division of International Monetary Systems (IMS). IMS is the largest publicly traded barter company in North America. He opened a barter account with $50,000 in credit, studied the other companies in the barter network, and bought office supplies, cameras, computers and travel certificates with his trade dollars. Today, Thomas uses barter to cover $500,000 in advertising, airfare, hotel stays and other expenses each year. While other companies slash advertising expenses in times of economic trouble, Thomas’ company still operates normally.
Learning how to barter well in various business situations takes time and patience. “Barter is not a perfect world,” says Thomas. “But we think barter all the time. When I talk to people about barter, I say, ‘If you can spend your barter, be happy. If not, spend your cash.’ Barter is another form of currency, and I always try to trade value for value.”
Courtesy: NewsUSA
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Bankruptcy, barter network, business networks, Business-to-Business, Debt, Marketing, travel certificates
