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Wholesale Buying Power
Barter, as most people know it, is a trade between two parties with no cash changing hands. Since both parties are making a new sale, the cash outlay for the merchandise they received is equal to the wholesale cost of the merchandise they sold. In effect, barter allows you to acquire products and services at your wholesale cost.
For example, if you sell copy machines, clothing, furniture, jewelry or any other product that has a keystone markup (a pricing structure in which your wholesale cost is half of the retail selling price) you will be acquiring each of your trade dollars for a cash outlay of just fifty-cents. Then, when you make a purchase using these trade dollars, you are paying half-price for everything that you buy on trade.
Every business needs the products and services of other companies. Barter is a lucrative business, where products/services are purchased and sold using trade dollars instead of cash. Transactions are recorded electronically through ATX, using state of the art software. Organized barter provides the vehicle for businesses to pay for expenses with the wholesale value of their product or service, rather than with cash profits.
Examples of How Wholesale Buying Power Works
A jeweler sells watches for $500 each, but they cost him only $250.
He needs to purchase $1000 of catalog printing. He has two choices:
Trade two watches for the printing.
Or, pay cash for the printing.
If he trades for the printing, it will actually cost him the replacement value of the watches, or $500. If he pays cash, the printing will cost him $1000. Pay on trade with income from new customers or pay cash from an existing vendor . . . the choice for most businesses is a simple one.
A hotel needs a $1000 copy machine. If management pays cash, they write a check for $1000 for an existing need or they could trade ten empty room nights at $100 each to new customers. If they trade for the copier, it will only cost them the value of their unfilled hotel rooms.
An optometrist can fill four hours of otherwise un-booked appointment time and take his family on a luxurious vacation.
Trade what you have - get what you need. When you barter with ATX, you turn your inventory and staff time directly into buying power to get what you need.
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