Facts You Should Consider While Choosing A Barter Trade Company

Many businesses execute barter trade one-on-one with other firms. But, it’s not always easy to find a company offering exactly what you are looking for as part of a barter deal. This is where barter trade exchanges or companies step in to help. 

Barter companies offer so many benefits from increasing your sales with better cash management to managing your excess inventory. However, choosing the right barter company is absolutely critical for the success of your reciprocal trade strategy. 

So let’s take a quick look at the factors which you should consider before partnering with a barter trade exchange or a company. 

Industry Experience of the management 

The business experience of a barter trade company gives an idea about the growth plans of that company. It also provides clarity on the kind of people working towards achieving the stakeholders’ objectives.

 At Interactive Trade Solutions, the management team comes with a vast industry experience of more than two decades.

 Understanding the management profile and their growth plans gives you a sense of security towards your investment. You can get a fair idea about how well your investment will be protected.

 Transaction fees

 A barter trade company charges a basic transaction fee on each barter transaction. Typically, the transaction fee ranges from 8% to 12%.

 As a client, you would prefer to be charged a transaction fee only when you buy and not when you are on the selling side.

 Some companies also charge a membership fee apart from transaction fees ranging anywhere from INR 10,000 – 50,000 per month or quarterly. Also, consider how accessible their team is while considering the membership fee to join.

 Type of members they have

 You would usually find a barter trade company serving different types of businesses. A thorough check of these members would give you a fair idea of how advantageous your association with that trading company can be in the longer run. The member base should be of particular interest to you.

 For example, let’s assume you are into the retail of mobile devices. In such a scenario, you would want to see a property management company (that has a retail space that you can rent on barter) as one of the members of the barter trade company. In case you do not find one, you should always ask if there a plan to gain new members in your area of interest.

 Number of local/national members

 It is essential to understand the reach of your own business - current and as planned for future - before you engage yourself with a barter trade company or exchange. If your customers are within your local geographical area and you don’t travel very often, it would be best to trade with such a barter exchange or company that has the majority of their members within your local area.

 On the other hand, if you want to reach out to customers on a national level, then it would be appropriate to partner with an exchange that already has or is planning to build a member base beyond the local area.

 If your costing allows, you can also think about getting associated with different exchanges to build a member base locally and nationally.

 Ratio of credits

 The efficiency of any barter trade company can be determined from its ability to maintain a positive ratio between credits in their name to the actual products and services held by them. If more credits have been issued than products or services, then it is advisable not to engage with such a trade exchange.

 Some barter exchanges may have apprehensions about answering this, but it is better to ask anyway.

 It is important to understand here that a new trader in this industry may not be able to maintain the right balance in the initial phases. However, their growth plans for the future can be considered as a yardstick to ascertain whether it would be profitable for you to engage with such an exchange.

 Marketing Strategy

 It is very imperative to understand how a barter trade company would present your business to other members. What marketing strategies do they adopt to ensure the best results? Some exchanges make use of email marketing to notify other members about new members, and some prefer traditional voice-based marketing techniques.

 It is very exciting when businesses are referred to you from the exchange without any real effort on your part.

 Conclusion

In today’s competitive landscape, businesses are discovering that the bartering concept has become an integral part of their business plan. And by looking at the above factors, business owners can take a decision partnering with a right barter trade company.

 If you are looking for barter trade solutions, please reach out to us at kb@interactivetrade.in/ +91 9999984234 or ss@interactivetrade.in / +91 9999318966.