The basic premise of bartering is that a business will use an unwanted or underperforming asset
to secure goods/services that they do need. In the corporate world, this is often arranged through a dedicated barter company like BarterInc that specialises in facilitating these deals between businesses.
Bartering became more popular largely in response to tighter credit and budgets. Businesses were looking for new ways to create or capture value. In some cases, bartering is seen as a way to steer around the limitations related to cash and credit and is also used as a method of expanding channels and finding new customers.
For example, Leading electronics firms have bartered discontinued stock, placing it in leading hotels in exchange for media and trade credits — gaining a potential new client in the hotel group in the process. Food manufacturers have bartered excess inventory in exchange for media credits or trade certificates allowing them to purchase other services such as hospitality and cleaning. Lufthansa has bartered real estate for media credits and aviation fuel, and these are just to name a few.
Companies considering bartering should consider these three questions:
1. Are there services for which you could barter to reduce your own costs or expenses?
2. Do you have any underperforming or non-strategic assets that could gain you value through bartering?
3. What other ways could you benefit from bartering? Could a barter deal expand your reach, credibility or brand recognition in the market?
If the answer to any of these questions is yes, then Bartering could be the way forward for your company.
Its simple really. BarterInc allows businesses to use Inc Dollars [I$] rather than cash as a purchase medium, which enables them to trade freely with others, resulting in deals that suit all parties.
These Inc Dollars are earned based on the full price value of the goods or services that the business has already given away on the platform, or pledged to give away.
A business can use the [I$] available in their account to purchase goods or services that they need from other member businesses in the network. All the account information is available on an easy to read dashboard online or on the BarterInc App on their mobile phone.
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BarterInc is a part of the Daylight Group established in 1979.