Barter 101: Case Studies

Typical Scenarios

Ticket Broker buys 100 tickets @ $100.00 hoping the event will sell out so he can sell his tickets at a premium price. As the event date approaches the broker offers the tickets for cash @ $250.00. The broker breaks even by selling 40 tickets. After selling as many tickets for cash as possible, rather than “eat” any remaining tickets, the broker offers them for barter.

Hotel: If not sold out on any given night, empty rooms are available for barter. There is no additional cost to the hotel to provide unsold rooms on trade.

Restaurant: Empty parking lots and empty tables are the restaurateur’s worst enemy. Barter puts cars in the parking lot and patrons at tables during the slow times. The wait staff is happy because they earn more in tips.

Contractor: A general contractor pays several experienced, trustworthy, and skilled employees salary. They are paid each week regardless if there is work or not. The Contractor does barter jobs in between the cash jobs. He is already paying his employees and rather than have them sit idle waiting for the next cash job, he keep them men busy and also earns barter dollars.

Publisher - Broadcaster: The publisher has two primary objectives. 1. Increase the number of readers/audience. 2. Increase the number of advertisers. The greater the audience or readership, the greater are the benefits to the advertiser. More advertisers makes the media more appealing. Potential advertisers are impressed by the tacit endorsement of the many other advertisers. The cost to publish or broadcast an additional advertisement is negligible compared to the high cost of acquiring new advertisers. Example: By including bartered advertisements, the publisher of a recently launched newspaper was able to entice many non barter advertisers to also advertise.

Caterer/Musician/Photographer/Party Equipment and Amusement Rental, etc: Corporate, private parties, and special events are an ideal opportunity to showcase your product or service and pick up new cash customers. Trade your product or service and earn barter dollars in addition to the valuable exposure.

Graphic Designers, Webmasters, Illustrators, Commercial Photographers, and Writers: Bartering your service is a way to pick up new and often prestigious clients you might not otherwise have. Samples of bartered work help to round out your portfolio and client list.

Fine Artist: Fine art is commonly traded. Barter your work to help establish its worth and preserve it’s value. Your work is of more value to you and the community when seen in the homes and offices of collectors rather than sitting idle in your inventory.

Equipment Rental: The large investment you made to purchase inventory for rent earns you nothing if sitting idle on off days. Offer to rent your equipment on slow days and slow seasons. Car Wash: Barter people will travel out of their way driving past your competitors to have their vehicles washed on trade. With a fixed cost to your daily operation, barter customers bring you virtually free income.

Manufacturer: A manufacturer recently retires a line of products due to a redesigned package and label. A few skids of product with the original packaging remain unsold. Rather than destroy the products in the old packaging, they are offered for trade.

Protect Brand Name Identity: A media company sells expensive branded seasonal garments bearing images of its nationally recognized emblem in its own retail stores located in major malls. Unsold inventory must be moved to make way for new seasonal merchandise. Rather than sell at deep discounts to liquidators, unsold merchandise was being destroyed to protect the high retail price point. Through the barter system, the media company is now able to trade remaining seasonal inventory at full retail price.