Since ancient times, humans have been exchanging goods and services. Centuries ago, Mesopatians, Babylonians and Egyptians bartered things like weapons and spices for survival and better living. In the Middle Ages, Europeans traveled around the world to barter silks, perfumes and saffron.
Barter has emerged on a large scale, especially in the 21st century during times of crisis like the Great Depression or the COVID-19 pandemic, because people want to keep physical exchanges to a minimum to prevent being robbed or infected. The latest advancement in science and technology has further improved the barter system with the internet. A buyer or seller can connect to more than one person in a bartering network without cashless exchanges.
Bartering has now re-emerged with a digital twist. Networks offer trade credits as an agreement or understanding between agents engaged in business with each other without any immediate exchange of money. The buyer’s account gets debited for the purchased items, and the owner receives trade credits. This arrangement allows a buyer to pay for the goods or services later, with the terms of the sale mentioning the period for which the loan is granted. This type of trade preserves a company’s cash.Â
So keep reading to learn more about how bartering can increase your business revenue.
- By facilitating members in the network
It’s not unusual to be unable to have a 1:1 agreement when bartering. One can facilitate multiple members for different services or goods in such situations. Hotels can provide their dining space to a restaurant in exchange for a week’s dinner, advertise a cleaning company in exchange for sanitization of the entire facility, and use these credits to complete necessary renovations. That saves cash for the hotel owner, which can be used for other unavoidable expenses.
- By building a history of repeat service and customers
While many businesses focus on customer acquisition to increase their revenue and brand awareness, the results are not that significant when compared to customer retention. While the financial market is wavering and a certain allure comes with capturing new buyers, discounts can keep customers returning and results in a greater return on investment (ROI). Also, if you’re wondering “how barter works“, join a bartering company and build a network to see how you preserve your cash for more immediate and important issues. In the long run, efforts to retain old customers are often valued with brand loyalty and business value.
- By strengthening relations within a business network
The competition in any market is on the rise, encouraging organizations to focus on new business and retain existing customers. When approaching a potential barter partner, transparency, flexibility and creativity are essential for a successful trade. Genuine consideration of the other member’s counteroffer, if they have one, builds a trusting relationship between two parties where the deal is more valuable than just one transaction. Trade relations without cash transactions.
The coronavirus crisis has proved particularly perplexing for many cash users. As a result of which, contactless payment systems like bartering have re-emerged. Networking is strengthened when a business makes its customers feel invulnerable.
- By keeping your cashflow free
Going cashless reduces the risk of crime. The future of the business landscape during uncertain times has forced many to save their cashflow for unexpected emergencies. For many companies, cash is tight, but capacity remains abundant. A barter community can offer you a lot more than just business benefits. Bartering networks provide services like housekeeping, spa, dental visits and a lot more, and trade credits are a boon in disguise.
Conclusion
Ownership of an office or shopping complex can fail to attain enough ROI when the world economy falls. That’s when the old-school trading technique of bartering can come to your rescue and increase business revenue. Learn more about available tools to management the process at https://www.facilitron.com/facility-owners/facility-management-software/.
