BARTER is a form of Joint Venture.
Leverage and barter underutilized goods, resources, services, capacity, raw materials, storage space, a sales team, personnel, intangible assets like distribution capabilities, etc.
Chrysler’s Savvy Move
In the 1970’s, Chrysler had 10,000 small cars they couldn’t sell. They exchanged those cars for radio & TV credits all over the country, to be used over a five year period, and traded the cars at full retail. (Window sticker) Their money was tied up in the cars. They weren’t spending cash on the advertising. The radio stations were selling unsold, future time and getting the cars right away.
Chrysler took the advertising credits to the bank and got money on them to pay for the manufacture of more cars that were sold with the advertising, so the bank financed the whole program! The radio and TV credits appreciated in value over the five years! That’s leverage.
Barter with Restaurants
A $10 meal costs around $3. The restaurant can barter that for $10 meal for $10 worth of radio advertising or whatever, so they’re saving 70%! Plus there are incremental sales – people buy drinks, tip waiters, new customers are generated that continue to spend money. The gift certificates are called SCRIP in the Barter business. The advertising they bought brings in more customers. A lot of the meal vouchers are never cashed in – this is called BREAKAGE. Remember, the overhead is already covered – electricity, server salaries, uniforms, telephone, etc., is already paid for, so the profit is high.
Barter with Printers
A commercial printing business has staff and machines on hand but not is fully utilized. His only cost is the paper and ink. The rent and payroll is already paid. So he can produce printing very cheaply and trade it for things he needs now, without using cash.
Soft Dollars and Hard Dollars
Trade TV sets that cost $300 at $1,000 retail, for hotel rooms that cost $7 and retail at $100. Both win. Soft Dollars are Barter Dollars and Hard Dollars is cash. Conserve your cash by setting up barter deals.
Barter with Hotels
Trade room for $100, cost is only $7. If the average person spends $50 in other services that the hotel has, and your cost is only $7, you’ve made extra cash right away, plus many gift certificates never got utilized! AND you got 100% retail value in barter! And you can sell bartered goods and services for CASH.
Heck, Why Not Just BUY the Hotel with Barter
A Beverley Hills hotel was bought out of Chapter 11 and immediately issued $3 million worth of rooms, food and drink credits to be used over a five year period. Scrip brokers bought it up for $1.5 million in cash. They cash converted future rooms. Cash converting means trading for goods or services and then immediately selling those goods / services for cash.
Get Savvy with Barter Yourself!
Dentists and doctors, chiropractors and consultants, couriers, web masters, writers and such trade or barter services. I know a dentist who traded dental work for radio advertising.
Instead of using cash and time, spend more time thinking about value and Joint Ventures! You can Joint Venture by SETTING UP a barter deal and take a piece of the action/ savings in cash or in scrip that you can convert to cash.
Remember: The key to successful Joint Ventures is the people who are involved. Integrity, Professionalism, Punctuality, Accountability and Passion and Generosity are essential ingredients. Joint Ventures is the way business is being done by smart people. find out more about DollarMakers at www.jvwisdom.com.
