Barter Comparison

 

 Barter Verses Regular Trade

The table below provides a cost comparison between barter and regular trade and shows how barter allows greater purchasing value from an equivalent cost of sale.

 

BARTER

 

 

The disposable purchasing funds using barter equates to the combined value of your cost and markup. Ie: 500 cost + $500 markup gives you $1000 of disposable purchasing value to exchange for other goods or services

 

Service or Production cost           $500

Mark Up (at 100% )                       $500

Disposable funds (Mark Up + Cost)  $1000

 

 

Disposable purchasing funds derived from $500 cost =   $1000

 

 

 


 

 


  BARTER MODEL

 

Barter allows you to include the value or your overheads or “cost of sale” as part or the total tradable value.  This effectively allows trading at wholesale cost. 

 

While bartering can remove some of the physical cash required for servicing overheads such as wages,   financial experts recommend bartering 5% to 15% of your turnover to significantly improve overall profits without affecting physical cash flow.

 

 

  REGULAR TRADE

 

The disposable purchasing funds derived from  regular trading comes only from the mark up on cost price.  Ie 500 cost + $500 markup gives you $500 profit for purchasing other goods or services.

 

Service or Production cost            $500

Mark Up (at 100% )                 $500

Disposable funds (Mark up - cost)  $500

 

 

Disposable purchasing funds derived from $500 cost =   $500

 

 

 

 


 

 

 

 

REGULAR TRADING MODEL

 

The disposable finances derived from regular trade practices, comes from profit earned after excluding cost.  In the examples shown, twice the amount of regular trading would be required to achieve the equivalent disposable purchasing funds attained from the barter model above.

 

  

 



The Trade to Save site promotes both bartering and regular trade.  This allows members selective control in accordance with any business circumstance.
 

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