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Barter is Booming
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Article 1: Businesses That Barter
The International Reciprocal Trade
Association (IRTA) reports that there are
approximately 500,000 existing retail trade
members and corporate barter company trade
members around the world representing a $16
billion a year business. Experts estimate that
65 percent of Fortune 500 companies engage in
barter to one degree or another, and the volume
of barter trade is expanding at 15 percent per
year.
According to the U.S. Department of Commerce,
barter accounts for 30 percent of the world’s
total business. In all likelihood that
percentage will increase in the years ahead. And
in all likelihood, you as a small-business owner
will find yourself playing the barter game
sooner rather than later.
In deciding whether or not to get involved in
barter, the first question a small-business
person must ask is: Do I have something to
barter? The answer is yes for most small
businesses. If you have excess inventory, you
have goods to barter. If you’re a service
provider with the capacity to handle more
clients, you have expertise to barter.
To make bartering payoff for your business,
experts suggest that you have a 30-percent to
35-percent profit margin on the products or
services you offer in barter. This profit margin
covers the costs of barter and allows a small
business to get the best out of a barter deal.
So, your small business has excess service
capacity and has the required profit margin on
the goods it wants to offer in barter. The next
question is: What are the benefits of barter?
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