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Why Trading Adds Revenue: Understanding barter

Updated: Nov 5, 2019

Why Trading Adds Revenue

Barter accounts for 30% of the world’s total business. (U.S. Department of Commerce)

65% of Fortune 500 companies engage in barter in one form or another.

Imagine for a moment that you own a printing company. Your company is staffed appropriately to handle the highest amount of requests that you have experienced in the past. Typically, you get the most business in the Spring, when other businesses look to advertise outdoors. However, you’ve had some random months with high demand lately, even though it’s Fall. If you keep staffing high, but demand slips, where does your profit go?

Straight through the floor. Demand can be a tricky thing to handle, and is liable to give headaches to even the most agile of businesses. Fortunately, there are many solutions for over appropriation of funds towards inventory or labor, and people have been solving these same problems for years.

In the Middle Ages, Europeans traveled around the globe to barter crafts and furs in exchange for silks and perfumes. Colonial Americans exchanged musket balls, deer skins, and wheat. Due to lack of money, organized barter became popular in the 1930s, during the Great Depression. It was used to obtain food and various other services, achieved through groups or “between people” who acted similar to banks. If any items were sold, the owner would receive credit, and the buyer's account would be debited for the amount established.

Cashless trades involving the exchange of goods or services between parties are referred to as barter transactions. While barter is often associated with primitive or undeveloped societies, these transactions are also used by large corporations and individuals as a means of gaining goods in exchange for excess, underutilized or unwanted assets. For example, in the 1970s, PepsiCo Inc. set up a barter agreement with the Russian government to trade cola syrup for Stolichnaya vodka.

In 1990, the deal was expanded to $3 billion dollars and included 10 Russian-built ships,

which PepsiCo leased or sold in the years following the agreement.

Today, bartering has made a comeback using techniques that are more sophisticated to

aid in trading; for instance, the Internet. In ancient times, this system involved people in the

same area. However, in today's age, bartering is global. The value of bartered items can be fairly negotiated with the other party, and mutually beneficial trades happen daily.

The value of including barter in your corporate strategy cannot be understated. Too much excess stock or labor can destroy an enterprise’s bottom line, and leave stakeholders gasping for air as they lose financial versatility. Seeking out and executing strong trades for business needs utilizing these same stagnant assets can transform massive losses into much needed assets.

"If I had my life to live over again, I would elect to be a trader of goods rather than a student of science. I think barter is a noble thing."

-Albert Einstein

Save Cash TODAY...

Cash flow is crucial. Oftentimes, we notice the need for improvements in our business, but tight budgets rarely have extra room for expensive marketing campaigns. 

It's great to "add more customers," but what if we run out of money before they start returning our investment? Liquidate excess supply instead.

Expand the company TOMORROW...

Our professional team of solutions specialists work around the clock to create top-tier growth solutions for our clients. We treat barter just like cash- once we agree on terms, our team starts work immediately to maximizing your business. Rest easy knowing our team is on your team- and your team is growing daily.  

Complete goals THIS YEAR...

Growth is mandatory in an expanding company. Rather than miss another year of growth goals over razor thin margins, give your company the tools it needs to break through the wall and achieve massive success. Empower your sales force with smarter marketing and dynamic tools, and watch those goals get shattered.   As a full-service marketing firm, Uptrade Media loves stagnant inventory. Our clients present us with a diversity of inventory problems on a daily basis, and we take pride in delivering unique solutions for liquidation. Sometimes, a product that cannot move in one market is perfectly suited for another one. We believe that great barter helps both parties equally, and encourage the proposition of all opportunities. Don’t limit your business to making and spending cash - trade towards a brighter future.

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