How Barter Works For a Manufacturer
No other business has more opportunity to create buying power through barter than the manufacturer. In essence, you are skipping two tiers of markup—the wholesaler and the retailer—and keeping that revenue for yourself because you are now selling at consumer prices. In addition, the cost of producing one more product is essentially nil—the overhead you would pay anyway in the course of production. Consequently, many manufacturers are able to generate tremendous trade income and turn it into big-ticket items like real estate, cars and luxury items.
That also means you are buying what you need with trade dollars that cost much less than an actual dollar. Think about it: Your “widgets” that you would have sold to a wholesaler who then sold to a retailer are traded for the final consumer price. A wholesale order for $5,000 can be bartered for as much as $20,000 or more in trade dollars! You are then buying any subsequent items on trade for much, much less than actual cost.
Who doesn’t want to save cash? Who doesn’t want to purchase goods and services for cents on the dollar? If the outlay is your cost of goods or unused time and labor, but you are trading for full retail price, you are getting a tremendous bargain. Unsellable inventory or unbillable downtime (net losses) is converted into purchase power. It’s not long before you grasp the amazing potential of GBC membership: buying what you need for cents on the dollar, increasing your business exponentially through new customers and conserving your cash resources!