Low incremental cost = high barter profits

If you are one of those lucky businesses that have a low incremental costs for additional “units” sold then barter can be a gold mine for you!  There are some businesses where they have to outlay a certain amount of resources to keep their doors open and (for the most part) their expenses don’t vary greatly based on the volume of customers served.  Examples would include movie theaters, gyms, martial arts dojos, etc. etc.  For a yoga studio there is literally no additional cost to add a new barter customer to their class.  As such the barter earned is like free money!!!  To those people I say….BARTER MORE!  I’m am at a loss as to why I can’t barter to go to the movies right now.  Ug…but I digress…

Unfortunately many of the folks reading this right now are not in the lucky situation to be able to earn barter credits free.  That being said I would encourage you to take a look at what your real costs are to barter.  It’s probably lower than you think.  For example, I have a barter partner that operates a mini-golf/arcade/go-kart racing facility.  Other than a little gas for go-kart racing barter is pretty much pure profit for them.  They would still have to have the same number of employees, maintenance, electricity, etc. with or without their barter clients.  I ran into a frustrating negotiation with a laundromat a year or so back.  They already had a manned location where they would wash and fold your laundry for you if you want.  Their current staff had free time on their hands so they could have provided this service on barter and their only cost would have been soap and electricity.  And for all that they couldn’t see the value of barter.  PEOPLE… get a clue here.  Why would you not want to have a sale that’s 95% profit?

I would like to encourage you to look at your business and see how much of your expenses are “sunk” and can be allocated against your cash business.  I think you will find that if you do so your incremental costs will be low and your barter profit will be shockingly high.  Now go out there and make some trades!  Also remember…every barter client that you add will tell their friends about your service.  You WILL gain new cash clients because of your barter business.

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