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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.
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BARTER
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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
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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.
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REGULAR TRADE
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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
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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.
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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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