How Your Business Can Benefit From Bartering

From Vivian Wagner:

Humans have been trading goods and services since time immemorial. Today, brokers are taking the ancient art of bartering to a new level that's helping businesses. In today's marketplace where credit is tight, bartering can turn excess inventory or underutilized time into income. It can also be a way to build brand awareness and business connections.

Small companies can do informal bartering on their own—trading menu-printing services for free Chinese take-out, for instance. But barter brokers make the process easier and potentially more profitable.

Trade Banking

One such broker, Tradebank International, connects business and service providers so they can trade their wares.

Plumbers, lawyers, accountants, restaurant owners, hotel operators and many other businesses register with the broker and agree to accept Tradebank dollars. Payment goes into a Tradebank account, and the businesses can use that currency to pay for other goods and services within the network.

As with any bank account, business owners can log in, check their balance and save their funds. Then they can check the directory of thousands of other businesses when they're ready to spend it.

"If you’re paying cash for services—for printing, landscaping, signage, payroll services—we can convert that to barter," explains Kyle Walters, a Tradebank regional owner in the metro Atlanta area. "You’ll see an enormous discount for doing that."

Walters says that bartering can be fun and profitable for businesses.

"It’s the kind of thing that once it gets in your blood, it can be really exciting," says Walters. "You’re getting a new revenue stream that's separate from cash."

From Weddings to Vacations

Bartering is especially useful for small- to medium-sized businesses. It's a way to boost income and increase brand awareness in the local community. It also lets business owners save up barter funds for large purchases like weddings, vacations or store-remodeling projects. Or they can use them on personal goods and services, such as theater tickets or manicures.

"It’s a great program," says Ilene Oxman, owner of Harry’s New York Pizza and Subs in Atlanta and a Tradebank barterer. "It brings a lot of opportunities to us that we wouldn't otherwise have. It’s almost like an automatic savings account. It’s money I probably wouldn’t be saving."

Oxman and her husband paid for their wedding using barter dollars. Their restaurant is being remodeled entirely on trade. Oxman also uses barter dollars for eating out or taking her kids to shows at the Fox Theatre, which she says she probably wouldn't do if it weren't for the barter dollars.

"We go to every single show at the Fox Theatre, and we get great seats," says Oxman.

Marketing Benefits

Bartering is a form of marketing for Oxman, bringing in customers who might not otherwise have heard of her restaurant.

“It attracts more customers because people have told others about us," says Oxman. "I look at it as an opportunity to get our name out there. We would not have that business otherwise."

Does your business lend itself to bartering?

Vivian Wagner is a freelance writer in New Concord, Ohio. She blogs for Contently .

Photo credit: iStockphoto/Thinkstock

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