How to sell your excess inventory at full retail price

This guest post is brought to you by Bay-Bucks.

What do you typically do when you have unsold inventory eating up your cash flow? Sales, price discounts, coupons? There is another way. It is called a barter exchange. 65% of listed corporations on the New York Stock Exchange use barter to improve their cash flow. Thanks to advances in web technology, small and medium size businesses can now take advantage of commercial bartering as well. A good barter exchange can turn your excess inventory nightmare into new business opportunities. Many have already found it an effective tool to move excess inventory, to realize greater cost savings, to improve cash flow and to find new customers.

We all know what bartering is. A barter exchange is bartering on steroids. Meet Sam, a shoe merchant, and Betty, a bookkeeper. Sam has some high-end sports shoes that are not moving and the Betty has unbilled hours every month. Sam needs bookkeeping services. Given a choice, he would rather pay his bookkeeper with his unsold high-end shoes than cash. But Betty does not want sports shoes; she wants custom jewelry. Fortunately, both are members of a barter exchange. Sam simply puts his high-end shoes up for sale in the exchange at full retail price. The brokers in the exchange will start work on selling these shoes for the merchant. Payment for the shoes are in the exchange’s internal trade credits, not cash. Sam can use this trade credits to pay Betty for bookkeeping services. Betty is happy to accept this trade credits because she knows the exchange has a jeweler among its members. She can turn around to purchase jewelry with her credits. By putting his excess inventory for sale on the barter exchange, Sam has reaped these benefits:

1) He enlisted the exchange’s brokers to help him sell his excess inventory at full price for trade credits.

2) He reduced his cash expenditure by paying for essential business services with these trade credits.

3) As a result of 1 & 2, his cash flow is now improved, because he has unlocked the value of his excess inventory and used it to reduce his cash expenditure.

4) If the person who buys his shoes likes his products and services, he may even gain a new customer who will pay cash for his popular items.

As it turns out, the person who bought those shoes is a gym owner, Gary. Gary also sells gym wares in his gym. He converted his excess gym memberships into high-end sports shoes and goods that he can sell for cash at a discount to gym members, making his gym membership more valuable to cash paying members. On their own, Sam, Betty, Joel and Gary would never have bartered with each other because their needs do not match and they do not know each other. But through a barter exchange, it all becomes easy. Think of a barter exchange as a bank for goods and services. Each member deposits what they have in excess, and draws out what they need. What you can do using a barter exchange is limited only by your imagination.

Barter Exchange

Joining a barter exchange is also easy. Simply visit the website of a barter exchange in your state and fill in a sign up form. These exchanges are individually own and run. An exchange representative will contact you to find out more about your business to see if it is suitable and guide you through the on-boarding process. As long as you are selling items that are generally in demand, you will have no problem qualifying for membership.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: