Advertising

MARKETING CONCEPTS ADVERTISING

Barter Ads Up To

New Business, More Profits

It was moving day for Jerry Chudnicki, owner of Picture Perfect, an advertising company that markets and produces commercials on movie theater screens. Jerry recently purchased a rural century home to house his business, opting to move away from the hustle and bustle of the big city. As the movers arrive, Jerry was busy completing his checklist of improvements and equipment needed before he could make the move.

The checklist included some moderate roof repairs, new carpeting for the lower level offices, a telephone system, computer network cabling, security system, office furniture and a color copier. Jerry’s list of items would have some business owners running for cover with thoughts of making a hefty withdrawal from their savings account to afford these necessities. But Jerry simplified his ability to address these business expenses when he joined Tradesource several years earlier.

Tradesource helps Jerry to generate new advertisers who trade for their movie theater ads with Jerry, supplying him with a new revenue source to tackle unbudgeted or unexpected operating expenses. With his list compiled, Jerry called his trade broker to make arrangements with other Tradesource clients to make the purchases he needed to convert the century home into a fully functional office for his business. Jerry’s trade broker even lined up the real estate agent and the moving company! “I can’t tell you how distressed I was every time my wife and I went into a theater and saw all of the comp ads I had to place in order to just fill space on the screen,” Jerry said. “A friend of mine who is with Tradesource told me how I could get new customers to barter for this available ad space and then use the trade

Media companies understand the value of filling their publications with advertisers and realize that their barter network provides a new source of leads for them

earned to pay for things I needed. I took his advice, and barter has really enhanced my business. Bartering is an idea as old as civilization itself. By strict definition, bartering is the cashless, item-for-item trading of goods and services. Where our ancestors might have been trading chickens for cows, today’s savvy business owners barter printing for landscaping, jewelry for computers, or like Jerry, advertising for just about anything – all this through the help of a professional barter exchange like Tradesource. Part accountant and part matchmaker, today’s barter organizations exist to bring their members new business.

Bartering enabled Mary Ann Fudale, owner of Direct Home Coupons in Santa Fe, New Mexico, to host a company golf outing for her employees and their families for each of the past seven years. Mary Ann traded Direct Home Coupon ads with many trade advertisers. Then, went to a trade member country club for greens fees, carts and catering, and also used a printer in her trade exchange for event signage. In addition, Mary Ann bartered for a Caribbean cruise,

“The best part is, barter doesn’t increase my overhead –
but it certainly helps me to increase my revenues and profits.”

entertainment tickets, restaurant gift certificates and a set of golf clubs to use as door prizes for the after dinner raffle. “My employees look forward to this golf outing every year, and we are able to accommodate them with a first-rate day out thanks to the additional business we do through our trade exchange,” Mary Ann said. “We use a local trophy shop to supply the awards, and a screen printer supplies us with golf shirts and caps on trade as well. Our employees work hard to assist all of our customers, and we like to be able to reward their efforts. Barter helps us do just that – and in grand style!”

Trade exchanges nationwide, like Tradesource, help cash-strapped entrepreneurs stimulate sales, develop new clients, convert excess capacity or inventory into revenue, and acquire the goods and services they need to conduct business. The most important benefit of barter is that the new business helps to conserve cash. Businesses trade for things they need and keep their cash for the expenses they can’t barter for. Bartering is an ally to small business owners looking to expand. Normally a business owner would have to go to the bank for a loan or save enough from receipts to finance the project. Barter is a way businesses can use the value of their own products and services to fund company growth.

“I probably generate an additional $20,000 in new business through my trade exchange,” said David Sauers, owner of Philadelphia Now, a trendy magazine in Philadelphia Pennsylvania. “That’s $20,000 of business that I wouldn’t have had, had it not been for my decision to join a barter network. The best part is, barter doesn’t increase my overhead – but it certainly helps me to increase my revenues and profits.” When you join a barter exchange, expect to invest between $300 and $600 in the membership. You’ll have about $20 in monthly promotional fees and pay 12 to 15 percent commission on your trades. In return, the exchange will provide you with constant promotion of your business, ongoing account maintenance, a monthly statement,

nice jewelry and even pay for part of my children’s education. I also barter for great seats for sporting events and concerts — which I offer as incentives to my top sales people.”

“The most important part of barter is getting new business,” says NATE. “When someone joins an exchange they’re exposed to hundreds of new potential customers locally and thousands around the country.

With competition so stiff today, barter helps drive those customers past your competition and into your door.” Always keep in mind that barter is still a business deal. That means you should use the same good sense in making barter decisions as you would if you were paying cash.

Magazine publishers use trade
advertising to generate more sales for their business and gain an edge over their competition.

Billboard companies use barter to help keep their billboards filled with revenue-generating advertisers.

membership directory, a personal trade broker to market your product and find what you’re looking for, and most importantly, lots of new customers.

“I initially had a hard time with paying fees to barter when I had been trading advertising space in my publication for years,” said Gail Nido, owner of the Greater Baltimore Directory & Guide. “But when I sat down and took a serious look at all the accounts I was running a tab on, and how many I never received anything from, I saved a lot of money by paying the barter company. We’ve even moved most of our direct trades into the barter exchange. It just makes sense.”

One-on-one bartering is common in the media industry, but joining a trade exchange or barter company (a group of businesses who barter among themselves) will provide you with more flexibility and opportunity. The barter company also provides a great record keeping system so you’ll always know where you stand with your barter account. There’s no additional bookkeeping on your part.

“Working 60, 70 or even 80 hours a week isn’t uncommon in this business,” says Bill Stein, owner of Transit Talk, a Los Angeles company that sells billboard advertising on buses. “That’s a lot of time away from my family. Being in the barter exchange has allowed me the opportunity to take my family on great vacations, buy my wife some really

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