Shanu Singh Guliani

Bartering in a Modern Economy
May 19, 2007

Those with little or no money have long understood the advantage of trading one thing, such as a labor, for another, such as a doctor’s care. But this doesn’t mean it doesn’t have a place in a modern economy. In fact, over the past few years, bartering has gained new prominence as a practical way for companies to acquire goods and services without laying out precious cash. Here are a few advantages:

1. Excess Inventory. If your company has built up large amounts of inventory then bartering offers a means to move goods and improve your operations. In addition, bartering can be a huge boost to companies during recessions to help move excess inventory and goods.
2. Outdated Inventory. Every business struggles with keeping trends but not being able to move items that fall out of trend. For example, in the jewelry business, fashions come and go and we’ve been stuck with many pieces that our vendors won’t trade out for newer pieces. Barter exchange of goods can help move aged inventory during our slow periods.
3. Preserving Funds. For start-ups and expansion companies, it is sometimes hard to lay out precious cash. This limited money for growth can use bartering as a strategic tool to acquire needed services.

Is bartering right for your small business? Bartering can be fun and profitable. Some people make it their primary means of doing business. In tight monetary times in particular, bartering can be a useful tool to have as part of your financial management plan.

Posted by Shanu Singh Guliani on May 19, 2007 | Comments (0)