Business is generally transacted by one party offering merchandise or a service and the party on the receiving end pays cash. This is a neat and simple transaction.
There is another way, however, to do business. This other way is called barter. In this type of transaction one party offers merchandise or a service and the receiving party pays with merchandise and/or a service. Both parties have to place a value on what they offer and agree to make the exchange.
There are two main ways to barter. You can make deals on your own (direct trade) or you can join a barter network. By making deals on your own, your options are likely to be limited. For example, a plumbing wholesaler would have some difficulty trading with an accountant, lawyer, a hotel, etc. on a regular basis.
If you join a barter network there is a much bigger market available. There will be many more people or companies available to purchase your products or services and there will be many more opportunities for you to purchase things you need in the system.
When you join a barter network and you sell merchandise or a service, you receive payment by receiving barter dollars. You can then use these barter dollars to buy things that you need in this network.
The question is why would people want to transact business on a barter basis and not on a cash basis. By bartering you generally will get business that you would normally not get. For example, if a plumbing wholesaler would sell a bathtub on barter for $500.00 he would probably be getting a new customer who probably would have bought this item elsewhere. The wholesaler would then have a sale for $500 and his cost may only be $250. If the wholesaler then goes out to buy something in the system for $500 and if he purchases it at a competitive price, the wholesaler has just saved $250.00.
Bartering can be a very effective way to get new business, save money, sell obsolete inventory and to improve your overall financial well being.
Black Swan would be very happy to work with any of our customers to help them get involved with barter. We have been trading in the barter network for years and we do have some experience.
Another service that Black Swan would offer to our customers is to possibly purchase their obsolete inventory. Black Swan would pay for this merchandise by credit memo. Our customers could then use this credit to purchase Black Swan products. In other words, Black Swan will barter our merchandise for your obsolete inventory.
If you are interested in bartering your obsolete inventory, please contact us. If we can find a market for your inventory, this could be a nice deal for everyone.