Cash is King...so Conserve It
We are a currency-driven society, with liquidity in the form of cash as the most nimble form of trade. For that reason alone... cash is king. As business operators, we know that any form of trade is king. The more we trade, the more we can position our businesses for growth and keeping market share.
Alternatives to cash come in the form of credit, which comes with a percentage as a cost. Having a healthy cashflow permits the payment of goods and services on time, so having that cash on hand is very important. So how do you save for that big expansion, equipment purchase or launch of product, at the right time, in the right market, and at a scale that makes everything worth while? That growth will most likely take cash, so it’s important to conserve it and have it for growth.
Options to dealing in cash have been around since the dawn of time. The financial markets are been heavily disrupted by technology. Options for the trade of good and services are coming back, using technology to blockchain investors’ value. Barter is one of those options. A “you give me this, and I’ll give you that” model that, when based on an agreed value system, allows you to achieve fair trade.
It’s not for everyone. Barter of some goods across international borders becomes very complicated, although governments have bartered since governments have been around.
Barter does not allow you to avoid paying taxes. Taxes are an integral part of trade and without taxes, many community services would be unavailable, such as a transportation system or health care system. In barter calculations for product, price is already there. It’s just the method of how you get the ROI and where your return is used that’s unique. This makes moving to a barter system easy, as it makes sense to barter with the focus of making your business or life better. Not everybody can barter. For starters, you need a product or service somebody needs. It’s the fundamental function of trade, and why barter between businesses works so well. A main challenge of barter is finding a buyer, let alone someone who is willing to barter. Enter BarterPay, a network of barter friendly companies, willing and able to trade.
With a network of members, BarterPay has over 275 businesses locally participating and has grown in popularity as technology has permitted the tracking and accounting of trades with a high degree of integrity and certainty. Trades are tracked and reports and statement are provided monthly. Accounting departments have no issues, and recording of monthly transactions becomes quite seamless.
It’s easy to keep track of your trades, and to decide to bank trades with trade or barter dollars, to be used another day.
When members accumulate enough trade dollars, they can find products offered by other members and acquire them.
Barterpay also hosts silent auctions, online auctions and members’ events. The best way to get started is to prepare a product list of what you’re willing to barter, and what value you will put on your product or service. The standard practice is to use the same value or incentive as you would with a regular customer.
This is great if you’re a wholesaler and have some excess inventory to put it up for trade. Members on the network are looking for products and services, so you have the ability to sell idle inventories at full retail price on trade. Trade works all over the world, but works best when geography and transportation is not a big factor. What if you could pay that business lunch with barter dollars? Or renovate your office with barter dollars? Imagine the flexibility you would have and the cash you would keep. It’s happening right now. Companies all around Waterloo Region and Guelph are doing barter. It’s just become more sophisticated, and is approaching critical mass.
David Harnock, at GTS Windows and Doors, is a 12-year member. “It has helped us immensely”, Harnock says. Not only do they benefit by using the services of other BarterPay members, but they also have increased sales from members and receive referrals to outside business from other BarterPay members. “We have benefited from networking with Barterpay members,” he continues, “drawing from their experience and expertise in marketing and advertising and small business issues.”
Marie Slater, from Hearts & Flowers, uses BarterPay to maintain her business’s services like electrical, plumbing, and telecommunication equipment. They’ve used Barter dollars to promote their business using signage and printing services available through the network of members. She does all this “without spending cash.” As an added benefit, holiday times see an assortment of seasonal products available through trade, as Slater also gives thank you gifts to their employees. Since 2000, BarterPay Waterloo-Wellington franchise is owned and operated by Tom and Andree Schnarr. BarterPay has offices across Canada, where franchisee operators work with account executives to help coordinate trades. Give them a call today.