Sunday, September 4, 2011

Answering the Why's


“Why doesn’t the trade exchange have computers, cars, etc.”

The first test for using trade is “can all or most of  my product be sold for cash” The businessman may want more sales so his next question should be, “can I save cash using all of the trade dollars that I will get if I offer a computer on trade?”.

In many cases, the answer will be “no”. A computer is such a popular item that he must control his sales volume.

It is the responsibility of the trade broker to work with the merchant and develop a list of goods and services that the merchant can handle in his normal business operation. The list can be changed on a daily basis as needed to meet changes in the business.

Without a good spend-down list, the businessman ends up with a large number of trade dollars and no plan to spend them. He then becomes frustrated and feels that barter has let him down.

There are many occasions when hard goods, such as the computer, become available on trade but they are quickly purchased. The answer is to save cash by getting on trade those items that are readily available. With the cash saved, you can purchase those items that are rarely on trade.

“Any fool can criticize, condemn and complain – and most fools do”
Dale Carnegie

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