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Motels and Barter make a perfect combination
If you have found traditional bartering services are not suited for your business, then you may find Trade to Save a better alternative because of the following four reasons:
1. We do not use barter currency - You actually exchange real goods and services or money
2. You have control - You negotiate on-line what you want, when you want it, and with whom
3. Its not just for Barter - Use it for standard trading, bartering or both, it's your choice
4. It's flexible - Use it as cash flow permits. There's no obligation to barter with members who turn up at your door.
Some other considerations...
Be Creative
Because you use real barter and not barter dollars you can be more creative with your bartering. You may also want to barter the service for personal items such as a bike a car or spa pool?
Low Cost
It's free for the moment, and it will always be free to list your accommodation as a casual member to see what level of interest you receive. There are no annual joining fees or transaction cost. Full membership will be around $8.75c for an entire months usage so it's not going to break the bank.
Proactive Cash Flow Management
In one action barter increases business, reduces cash flow and brings new prospects. You can maximise your business returns with an educated mix of barter with standard business. Trade to Save's on-line giving you back the proactive control of this process when cash flow permits. Use the site for normal trade or try bartering to:
- Invest in maintenance, renovations or product without drawing on cash flow
- Save thousands of dollars on expenditure as shown in model below
- Fill underutilised accommodation during off-season or slow periods
- Reduce tax by trading and purchasing at effective wholesale values
- Access readily available prospects who want to barter for accommodation
- Use the service to find personal items you may require
- List your accommodation like a lucky dip to see what offers you receive, you choose if you want to trade and you just never know what others are prepared to offer?
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Motel Barter Verses Retail Comparison
Exapmple - Revenue to acquire an Air Conditioner of $1000 in value
RETAIL EXAMPLE
If a typical overhead cost is 50% of the room rate, in order to earn $1000 in profit to purchase the air conditioner, the motel needs to rent $2000 worth of accommodation or 20 nights at $100 per night. Tax on profit earned would be $330 and the air conditioner can be applied as a taxable business expense
BARTER EXAMPLE
Using barter, you trade equal retail values ie $1000 air conditioner for $1000 of accommodation that would equate to 10 nights accommodation (at $100 per night). This means your overhead cost and tax on profit is halved. Also, you only used 10 nights accommodation to get the air conditioner, rather than the 20 nights required with the retail model. This equates to an additional earnings of $1,000 in the extra available rooms. Under the barter model, the cost for the air conditioner can still be put against the company as a taxable expense.
The model below shows the above example
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BARTER
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Value of Aircondition Unit
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Barter Needed
The Barter trade required would be the retail room rate equal to the value to the airconditioner
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Actual Cost
Your actual overheads (if cost = 50% of the room rate
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Nights Let
Nights required to let @ $100 per night
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Tax
Tax on declared profit $500
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$1000
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$1000
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$500
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10
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$165.00
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NORMAL TRADE
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Value of Aircondition Unit
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Retail Needed
If profit is 50% of room rate then $2000 retail trade is needed to attain $1000 in profit to purchase the air conditioner
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Actual Cost
Your actual cost (if overheads = 50% of room rate
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Nights Let
Nights required to let @ $100 per night
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Tax
Tax on profit of $1000
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$1000
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$2000
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$1000
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20
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$330.00
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Total Savings by using Barter
$833 in cash savings
$1000 in additional room revenue to let
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Cost saved
$500
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Nights saved
10=$1000
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Tax saved
$333.00
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If you would like to receive a FREE barter calculator spreadsheet where you can plug in your personal details to see the returns, then please click here to go to our "contact us" page to request a copy if the sreadsheet.
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Request Barter Calculator
Bartering to overcome finacial dificulties
Scenario- Using barter to help renovate your motel
Scenario
A motel operator may be loosing patronage because they lack funds to upgrade their sub standard facilities. Consequently, they are forced to lower room rates in an effort to keep up occupancy levels. This however, will not provide the funds for any upgrade nor guarantee occupancy levels.
Solution
Using the barter function on Trade to Save, they can attract the patronage of various trade services and product in exchange for providing accommodation either immediate or post dated. This will allow the motel facilities to be upgrade without necessarily impacting on present cash flows and increase future business.
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