Using Bartercard to recover cash debts

Do you have any regular cash clients who have fallen on hard times and are struggling to pay you?

Rather than pursuing the debt and having the relationship turn sour, you may be able to use this trading tip, for a win/win result.  The idea is to offer them an incentive to pay you now.

Here's an example of how it could work:

Lets say a printer is owed £10,000 cash from a jeweller and the invoice has been outstanding for 12 months. The printer could offer the jeweller an incentive, by saying they will accept half of the debt in cash and the other half in product or gift vouchers.

This incentive could have a limited timeframe in order to motivate the jeweller to resolve the debt. The product or gift vouchers would then be sold through Bartercard for Trade pounds and the printer would use the Trade pounds in their business.

If there is hardly any hope of them paying some cash, then the printer might accept the whole debt in product or gift vouchers or, even ask the jeweller to join Bartercard in order to pay the debt directly in Trade Pounds.

Use Bartercard to Improve your lifestyle

Why are you in business? Hopefully it is with the view to ultimately improve your lifestyle!

If Bartercard can help you to earn extra income which you can use partly for lifestyle purchases, then Bartercard is effectively helping you achieve the primary goal of improving your way of life.

Bartercard members are able to spend some of the Bartercard Trade pounds they receive from gaining extra business on either themselves or their family. Some business owners choose to use their Trade pounds, along with their interest free line of credit, to pay for a much needed holiday or weekend away. They may pay for other lifestyle expenses, such as dining out, clothing, entertainment, hobby equipment, gym memberships, massages, soft furnishings for their homes etc; all of which your business is supposed to be providing you with – a better lifestyle.

Strategies

1. Ascertain, with the assistance of your Accountant, a budget to spend on lifestyle expenses.
2. Peruse the Bartercard Auction site, eMarketplace and International Online Directory for lifestyle products or services.
3. Ask your Trade Co-ordinator (Account Manager), or the Tourism and Hospitality Support personnel at Bartercard’s Head Office to advise you of any travel specials.

MARKETING THROUGH BARTERCARD

Businesses often struggle with finding cashflow to reinvest in the growth of their business.  As a result, marketing efforts often fall to the bottom of the priorities list.  Bartercard members can resolve this situation by using Bartercard within the Exchange network on expenses relating to marketing activities.

Trade opportunities relating to marketing available through Bartercard members include:

•    Advertising in magazines, newspapers, radio
•    Website design and management
•    Signage: billboard, taxi, truck and mobile billboards, to mention a few of many
•    Creative services, including design and placement
•    Merchandising, including branded uniforms


As the economy tightens up, one of the first areas many busineses look to save money on is their advertising spend. However this is a double edged sword as it can also reduce the number of customers coming through the door. One of the best places you can spend trade is on attracting new cash paying customers to your business.

There are a couple of different ways you can increase your advertising spend while competitors are reducing theirs:
 
The first is to spend Trade pounds directly on advertising, in the Bartercard directory, the advertising section has pages of different options for your business.

Why not spend some Trade pounds on an incentive or prize to attract cash paying customers. You could offer customers a prize draw for a mystery weekend away that you pay for with Trade pounds . 

This trading tip is about spending Trade to make your business more attractive to cash paying customers. By doing so you can increase your market share without spending cash.

Use Bartercard to: Build business networks

As Bartercard is a membership based network, all Members have an obligation to encourage other businesses to participate.  A large network with a variety of businesses selling products and services is beneficial to all Members.  To grow the Bartercard network, Bartercard organize a variety of monthly networking functions.  These functions provide a forum where Bartercard Members are able to network with each other and build invaluable business relationships. A large amount of cash referral business may be generated through having good Bartercard business contacts.

Necessary tools

•    Business cards/promotional flyers to hand out at functions
•    Social skills

Strategies

Ascertain from your Bartercard Trade Co-ordinator (Account Manager) the dates of all possible networking functions and diaries
 

Ask a business associate to attend a function with you
 

Attend the monthly functions; while there, collect business cards and build business relationships
 

Offer to co-ordinate a business function at your premises or sponsor an event to deliver your brand’s message
 

Maintain a proactive deal-making mindset by focusing on what can be done, not what can’t be done!

Win cash contracts

We find that every time a Bartercard member provides a service or product of great quality to another member, the satisfied customer is likely to recommend the business to other people they know in the cash economy. Therefore, by simply providing great service and products to Bartercard members, you’ll be in a position to gain referrals to new cash customers.

1 . Treat every Bartercard customer the same as you would a cash customer. Understand that every Bartercard customer is a business owner, staff member, family member or friend of a business owner. Therefore, every Bartercard customer has an extensive network of suppliers, customers, family and friends who, if you simply supply great customer service to, may refer your business to everyone they deal with!

2. Ask Bartercard members to refer your business.

Example pitches

 “I’m not looking for any type of customer; I’m looking for customers like you? Would you be able to introduce me to any of your contacts?”

“I make no apology for the fact that referrals are an important part of my business and I was curious whether you knew of anyone that it would be good for me to get in touch with?” 

“Here’s a list of businesses that we’d like to work with. Do you have any contacts at these Companies?” You’re one of the strongest advocates we have, are you able to recommend us to anyone?”

Expand your product line

Bartercard members have the option to purchase product from other Bartercard suppliers at wholesale or retail  rates, thus adding new stock to their product line which they can on-sell in the cash and/or trade economy. This option opens a realm of possibilities for Bartercard members as they are no longer restricted to selling just their product but are able to sell other unrelated products.

Strategies

1. With the assistance of your Trade Co-ordinator (Account Manager) or Franchisee,  source a Bartercard wholesale supplier who is able to supply a new product in bulk to your business either via the Bartercard Auction site, eMARKETplace or Online Directory.

2. Be assertive, approach new suppliers. If they are not Bartercard members suggest to
them if they were to accept Bartercard  as payment, you would do business with them! In this instance, complete a Trade Purchase Request or Referral Form and forward to your local Bartercard Sales Consultant who will approach the business owner on your behalf with your purchase requests. (This referral system encourages business owners to join Bartercard and commence trading with you straight away).

3. Stay in regular contact with your local Bartercard Sales Consultant.

4. Advertise your new product either as a value added benefit (see the business solution
‘Use Bartercard to … purchase value added benefits to entice customers’) or simply a
new product to add to your range.

Case Study 
A hair salon owner sells product through their salon.

A hair salon owner had accrued approximately £5,000 in Trade Pounds and wanted to trial selling product through their salon. 
 
The hair salon owner was stocking shampoos and conditioners from a cash supplier; however, she wanted to expand her product lines to offer different items, other than hair care products. She was able to source body butter and bath bombs on Trade, which they incorporated in a creative, colourful window display to attract new customers.

The hair salon successfully expanded their product line with additional products purchased on
Bartercard.

Incorporate Bartercard into your payroll

Bartercard Trade Pounds may become an integral part of a business’s payroll. A business owner is able to take dividends or some drawings from the business in Trade Pounds or they may pay their staff a combined income of cash and Trade Pounds.

Bartercard members may implement three strategies to incorporate Bartercard Trade Pounds into their payroll. These include:

1. Setting up a staff account that is linked to their main Bartercard account (Parent/ Primary). The Bartercard member is thereafter able to pay Trade Pound dividends, bonuses or part of an employee’s wage into this account.
2. Provide their employees with Bartercard gift certificates, which they are free to spend at any Bartercard business.
3. Periodically purchase a particular product or service on behalf of an employee, and thereafter deduct the expense from their employee’s wages over an agreed period of tim

Examples of members incorporating Trade Pounds into their payroll.

Case Study 1
A Bartercard advertising agency pays their staff a Bartercard Trade Pound commission.
Aim/Objective:An advertising agency wanted to devise a way in which to motivate their staff to increase their sales.
Method/third party story:The advertising agency owner requested to open five Bartercard staff accounts. He advised all his staff of a new ongoing sales promotion he had devised whereby, if they increased their sales over and above the set weekly levels (for which they currently received a cash commission), they would be rewarded with double the commission per additional sale, paid for with Bartercard Trade Pounds into individual Bartercard staff accounts.

Outcome/Conclusion:Once the staffs were aware of the various spending areas available to them in Bartercard (as advised by the Trade Co-ordinator and the advertising agency owner) the number of sales increased by 20% across all staff.

Case Study 2
A hotel owner rewards long serving staff members
Aim/Objective:To reward long serving staff and maintain a staff retention program.
Method/third party story:
A hotel owner held a staff meeting where he formally recognised and praised his long serving staff members. He advised them he was so impressed with their good work and effort over the years, as a reward he wished to offer financial assistance with purchasing goods or services they couldn’t ordinarily afford. The hotel owner offered to pay for the goods and services on behalf of the employee. The hotel owner asked the employees to consider, over a period of a week, if there were any requests that the hotel could assist with and if so, to advise his financial controller.

Outcome/Conclusion
One of the housekeepers approached the financial controller and asked if it would be possible for the hotel to hire a juke box for her daughter’s 21st birthday party. This was swiftly sourced on Bartercard. The housekeeper was thrilled, as she had never thought to ask her employer for assistance in this manner. The hotel owner was happy, as he was able to assist one of his long serving staff members

Use Bartercard to: Pay your creditors !

During these tough economic times, some Bartercard business owners may not have a
substantial cashflow to support paying some of their creditors. By being a Bartercard member,
you have the option to use your Bartercard Trade pounds or products or services as a means to
pay all or part of your cash debt quicker.

Strategies
If a creditor is keen to receive payment, they may accept part or all of the outstanding payment in the following ways:

1. By accepting Bartercard Trade pounds from the debtor (Bartercard member).
Depending on the amount outstanding, a temporary Bartercard account may be set up
for the creditor or gift certificates may be issued that the creditor can spend at any
business that accepts Bartercard.
 2. By accepting products or services from the debtor (Bartercard member) that the
creditor can use or on-sell in the cash economy. As a Bartercard member (debtor) you
are not limited to your own product, you also have the option to select from the variety of
products or services in the Bartercard network. These products could be sourced using
the Bartercard Auction site, eMARKETplace, Online Directory or by contacting your local
Bartercard office to satisfy the creditor’s requirements.
 3. By having the debtor (Bartercard member) pay the creditor’s business expenses (the
Bartercard member may simply pay a Bartercard supplier in Trade pounds, on behalf of
the creditor).

N.B. As a result of implementing one of the above strategies, the creditor receives their outstanding payment and the Bartercard member is able to pay their outstanding cash debt with Bartercard Trade pounds, thereby retaining valuable cash in their business.

Using Bartercard to gain new cash customers

Utilise Bartercard Trade Exchange to give your business an edge over your cash competitors

Wouldn't it be great if you could use Bartercard to gain new cash customers?

The best way to describe this Business Tip is through a real example from one of our members

• A Bartercard member was quoting a contract to get their products into a major retail chain – 30+ stores.
• They were quoting against other competitors a bidding for the same business.
• They didn't want to discount their product to win the contract, so instead they thought outside the box.
• When submitting their quote they offered to take the first year, of a 3 year contract in gift vouchers from the retail chain.
• They secured this contract because the retailer realised they were getting a discount equal to their gross profit margin, by paying with their product.
• The Bartercard member then sold the gift vouchers through Bartercard and used the Trade pounds to reduce their cash expenses.
• And the 2nd and 3rd years of the contract were paid in cash.

The Bartercard member utilised the Trade Exchange to give their business an edge over a cash competitor.

Use Bartercard to: Purchase value added benefits to entice new customers.

A Bartercard member would like to entice new customers (cash and Trade) into their business by offering increased perceived value gifts, thereby eliminating having to discount on prices and maintaining price integrity of their products or services.

Necessary tools
• Acquire the necessary credit limit via Bartercard account or a credit limit increase form
• Bartercard’s online Auction site and eMARKETplace
• The Bartercard Online Directory
• An advertisement (preferably with photos).

Strategies

1. Purchase small products from other Bartercard members, then package them with your own products/services as a bonus or to enhance your own products/services.

2. Offer your customers the opportunity to select a gift, at an agreed value, from the Bartercard Auction site, eMARKETplace or from a member in the Bartercard’s National Online Directory.

Examples of members purchasing value added benefits using Bartercard.

Case Study 1: A restaurant attracting repeat customers.

Aim/objective:

A restaurant owner wanted to devise a way to attract repeat cash customers to his restaurant.

Method/third party story:
As a means of encouraging repeat customers to this restaurant, the owner created a loyalty program card. The restaurant owner paid a Bartercard graphic artist and printer to produce business card size loyalty cards. The loyalty cards were divided into 10 x patronage boxespurchase 1-night packages, including breakfast. The average spend per person was $20.00 to $25.00, therefore the minimum spend of $30.00 per person on the loyalty program card was a means to increase the average spend per person. The free night in a local resort was awarded when a customer spent a minimum of $30.00 per visit over 10 x visits.

Outcome/conclusion:
This loyalty program resulted in a strategic co-operative marketing exercise for both the restaurant owner and the resort owner to gain extra business. The restaurant owner and the resort owner were able to measure the success of this marketing strategy through this loyalty program. Each loyalty card generated $300 worth of additional cash business for the restaurant. The free night away was perceived as a great reward for existing and new cash customers. Invariably, the patrons who collected and used their free night away at the resort paid for an extra night’s accommodation to extend their stay, thus providing the resort owner with additional cash business.

Case Study 2: A mechanic up-sells larger, more expensive car services.

Aim/objective:

A mechanic wanted to devise a way in which to sell larger, more expensive car services without discounting his prices.

Method/third party story:
To entice customers to pay for a more expensive car service, the mechanic included a number of perceived free items in an upgraded car service. These items included a free car detail, a car cleaning pack to sit in the car boot, or a car esky. All the items were purchased on Bartercard.

Outcome/conclusion:

The mechanic was able to measure the success of this marketing strategy through the number of customers who took up the offer of an upgrade.

Case Study 3: A law firm offers a free pest inspection with their conveyancing package.

Aim/objective:

A law firm required a new and inventive marketing strategy to entice new customers to use their services over and above their competitors.

Method/third party story:

Instead of discounting their conveyancing fee, a Bartercard law firm offered a free pest inspection with all of their conveyancing packages. As it is imperative to have one of these inspections completed when purchasing a property, by creating this package it gave the law firm a competitive edge over other law firms within their catchment area. The law firm prepurchased a pest inspection voucher, using Bartercard Trade pounds, and thereafter included this voucher as a free gift with their conveyancing service.

Outcome/conclusion:
The law firm was able to maintain the full cash price for their conveyancing service and not discount their fees, thereby maintaining their price integrity.