Gain a competitive edge over your competition by taking additional business…

Trade accounts for approximately 30% of the worlds total business annually.  On a global level this creates a competitive edge for companies that will accept trade or barter as all or part of a transaction when a direct competitor does not. 

A perfect example of this is Pepsi & Vodka, how did it work?  Pepsi-Cola delivers syrup that is paid for with Stolichnaya Vodka. Pepsi has the marketing rights of all Stolichnaya Vodka in the U.S. Recently Pepsi has made another innovative step by taking 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. In turn, this rag tag fleet of 20 naval vessels will be sold for scrap steel, thereby paying for Pepsi products being moved to the Soviet Union.  By using this method Pepsi was able to gain a necessary competitive edge over Coca-Cola and ultimately was the factor that made Pepsi win out over their competition. Obviously these examples are on such a large scale that they do not correlate with a local business owner, however this is a clear example of a competitive advantage enjoyed by a business that used an alternative strategy to bring in new business.

On a local level for example a restaurateur might trade meal credits to a printer for printing of menus and wine lists.  This example works great so long as both parties need or want what each other has at that exact moment.  The difficulties can arise on several different fronts.  First you are limited to the goods or services that your direct trading partner has at that moment, and you must have a need for the products or services of the same value.  Second you must keep track of the transaction which adds extra work.  And third, you run the risk of your trading partner going out of business before their end of the deal is fulfilled, leaving you at a loss. 

These issues can however be alleviated by using a barter / trade exchange.  Rather than having to accept a good or service directly you would accept an alternative currency or barter dollar.  This barter dollar is then able to be spent within the exchange for items that you want or need that you would be spending cash on, and you pay for this by taking additional business in your down times that the trade exchange brings to you. This also gives you a distinct competitive advantage over your competitors as an example, in a strictly cash world the printer may be 1 of 100, but in a barter exchange they may be 1 of 10, this makes it easier for businesses to find you.  An added benefit of spending barter dollars towards things you would be spending cash on is that you keep the cash in your pocket, and in an increasingly tight economy the more liquid you are the better off your company will be.  The exchange company also tracks your purchases and sale so you do not have to manually track them for tax purposes.  Lastly should the your trading partner go out of business you are not at risk of loosing anything as you have accepted a currency rather than a direct product or service.

If you take the time to think BIG on a local level, set your sights high and look at alternative methods to bring in new business that you likely would have not had in a cash world you could be well on your way to major success…think Fortune 500.