عربي

“Reciprocal Barter” or one-on-one barter was the standard of Commerce before there was money. The limitations of one-on-one barter are that two companies must have a need for each others product at the same time and of an equal value.

Successful matches of need and value were so rare that cash currency was developed as a common medium of exchange.
Organised barter works in a similar fashion to cash currency through the use of a trade dinar or trade credit. For all practical purposes the trade dinar is treated and used like normal dinar currency on a debit and credit system maintained by a clearing house ( the trade exchange). The first function of the trade exchange is to market a company’s product or service to its network of other client companies. This creates increased exposure to new markets.

When a product or service is sold, the seller receives a credit in trade dinars that can be utilized with any other companies in the network. This creates flexibility.

HOW IT IS BETTER?

EFFECTS OF A BARTER TRANSACTION ON SALES CASH FLOW AND PROFIT INCOME

                                                       WITHOUT BARTER             WITH BARTER

CASH SALES                                        KD  1,000,000                KD  1,000,000
BARTER SALES                                                                          KD       50,000
 
GROSS SALES                                      KD  1,000,000                KD  1,050,000
COST OF GOODS                                 KD     500,000                KD     525,000

GROSS PROFIT                                   KD     500,000                 KD     525,000
EXPENSES
FIXED                                                    KD     250,000                 KD     250,000
i.e (mortgages, utilities, payroll)
VARIABLE                                            KD     200,000                 KD     150,000

VARIABLE BARTER                                                                    KD      50,000
i.e (printing, stationary, travel)                       
A TO Z TRANSACTION FEES                                                     KD        5,000
( 5% IN & OUT)              

TOTAL EXPENSES                                   KD    450,000              KD    455,000

NET PROFIT                                            KD      50,000                KD     70,000

  NET RESULTS:

• KD 50,000 IN NEW MARKET SHARE SALES
• CASH FLOW IS IMPROVED
• PROFIT IS UP 40%

Why pay cash when you can AtoZ BARTER?

A northwest hotel chain with 55 locations had major cash-flow problems and was unable to maintain an advertising budget. With all the competition they needed to advertise but simply could not afford the expense. Their occupancy rate was about 60% with approximately 4600 rooms in the chain. An exchange of accommodations for advertising was the PERFECT solution and a contract with a AtoZ Barter company was entered into. The hotel chain traded room nights for 1.2 million dollars worth of advertising and within 6 months increased their occupancy rate by almost 18%. This was accomplished without the use of cash.

A local car giant recently traded his cars for comprehensive insurance that he was paying to every month almost 250,000 KDs. The insurance company in return sent their accidental cars to the workshops all in full barter. The workshop in return purchased jacks and paints and so on.  

A homemaker with 3 small children wanted to remain at home but also felt the need to assist her family with the finances. Instead of leaving the home to pursue a job that would interrupt their objectives as a family, she opted to use one of her talents. She began producing handcrafted dolls and animals on a custom order basis. This helped; however, she discovered that many of her potential customers were in the same need of additional funds themselves. She found an association with a local/national trading company and began exchanging many of her goods to clients that were members of the trade organization. Without cash business from them she was able to pay for all of her family's dental care, carpet and furniture cleaning, auto repairs, hair cuts, tree trimming, and a host of fun services that would not have been in the family budget. Mom stayed home, as she wanted, and generated much more without using cash.

A small copier and fax machine sales company used the cashless trade system to pay for dining expenses, printed color brochures sales contest items and a radio advertising campaign that increased their market share. All of this was done without the use of cash and significantly increased their annual sales volume.

A car dealer is able to pull in new customers and re-surface his entire parking lot and do an addition on his house all without the use of hard-earned cash. He takes his wife out to dinner and uses hisAtoZ Barter Check to pay the bill. His wife joined a health club and gets her manicures using the same account.AtoZ Barter account has enhanced the quality of their lives and brought in more business. Finally, these new customers are the best source of more cash customers, and all because of a trade strategy.
Imagine how much easier it is to exchange that used truck, boat, engine, parts, quilts, stamps, furniture, etc. forAtoZ Barter Dollars that are spend able with all the members in the trade system. Increase your company volume, sell excess inventory, start a home based business or simply trade those unused items for things that you want and need. The trade system worked in grade school and it works today. The product, service or talent you possess has a value.

IF ITS NOT AtoZ IT’S NOT A BARTER DEAL