The key here is balancing the demand for your product or service with the capacity of your business to use trade dollars. Your ability to spend trade dollars is directly related to your willingness to look at alternative suppliers in the Bartercard network in order to save cash.
Wouldn’t it be great if you could use Bartercard to gain new cash customers?
The best way to describe this Trading Tip is through a real example from one of our members.
Just Water were quoting against other cooler companies for a contract to supply water coolers to a major national retail chain of 30+ stores. They didn’t want to discount their product to win the contract, so instead they thought outside the box.
When submitting their quote they offered to take a percentage of their quote in gift cards from the retail chain. They secured the contract because the retailer realized they were getting a discount equal to their gross profit margin, by paying with their product. Just Water then sold the gift cards through Bartercard and used the trade dollars to purchase business related items therefore saving cash.
Just Water utilized Bartercard to give their business an edge over cash competitors.
One of the first areas businesses look to save money is on their advertising spend. This is a double edged sword as it can also reduce the number of customers coming through the door. One of the best ways you can spend trade dollars is attracting new cash paying customers.
There are a few different ways you can increase your advertising spend while competitors are reducing theirs:
A pest extermination company wanted to gain new cash business. They purchased a weekend package at Treetops on the Sunshine Coast, Australia, at a cost of T$540. They then set up a booth in a Shopping Center and ran a promotion whereby if a new customer used their extermination services within two months they went in to a draw to win the weekend package. The promotion attracted $6,000 in new cash sales. The Member gained new cash customers to the value of $6,000 after outlaying T$540.
This trading tip is about spending trade dollars to make your business more attractive to cash paying customers. By doing this you can increase your market share without spending cash.
Do you have any regular cash clients who have fallen on hard times and are struggling to pay you?
Rather than pursuing the debt and having the relationship turn sour, you may be able to use this trading tip, for a win/win result. The idea is to offer them an incentive to pay you now.
Here’s an example of how it could work:
A printer is owed $10,000 cash from a jeweler and the invoice has been outstanding for 12 months. The printer could offer the jeweler an incentive, by saying they will accept half of the debt in cash and the other half in product or gift vouchers. This incentive could have a limited timeframe in order to motivate the jeweller to resolve the debt. The product or gift vouchers would then be sold through Bartercard for trade dollars and the printer would use the trade dollars in their business.
If there is hardly any hope of them paying some cash, then the printer might accept the whole debt in product or gift vouchers or, even ask the jeweler to join Bartercard in order to pay the debt directly in trade dollars. Surely it is better to be paid now in trade dollars rather than hanging out for the cash and risking not being paid at all.
If you could pay some cash bills with trade dollars that would be a good thing, right? There are a couple of different ways that this is possible.
The first is to review your suppliers and look at who might be open to receiving goods or services in lieu of a cash payment. Then purchase goods or services from within the Bartercard membership for your supplier, who would in turn give you a credit on your account.
The second way to achieve this is to suggest to your supplier to accept trade dollars. If this was a permanent arrangement then we would sign them into Bartercard. If it was a one off deal, then we have another option of a Bartercard spend down account.
Instead of giving up on unwanted products and writing them off as a loss, promote them to a new marketplace who might have use of them. If you’re unsure how that could be made to happen, ask yourself these questions. Do you have excess inventory sitting in your business? Is your competition coming out with newer products while yours are collecting dust and losing value? Or, do you want a higher turnover for your inventory?
Rather than heavily discounting, running last minute deals or writing off surplus inventory, you can keep its value by selling it through Bartercard’s network at the normal selling price! We provide you with the tools to sell excess inventory, ensuring you maximize your returns and your productivity during slow periods and utilize spare capacity.
Use trade dollars to reward staff in your business.
Wages are often one of the largest bills a business has and staff look for a pay rise yearly. Many Bartercard members pay their staff bonuses in trade dollars which they are then able to use at restaurants, for car repairs, haircuts, gifts, dry cleaning, massages, chiropractor visits, or even a vacation.
You can use trade dollars to reward staff, keep them motivated and increase performance. Bartercard has two tools to help you achieve this:
Staff Accounts – This is a separate account to the business account, only the parent account can transfer funds into it and only the parent account will pay fees.
Gift Cards – These are a great way of giving your staff a one-off trade dollar payment or bonus – e.g. at Christmas time you might give each staff a T$500 bonus.
The key is to work with your Trade Broker to discuss your requirements and learn how you can best benefit from you Bartercard membership.