If you’re like most dentists, you’re no stranger to barter. Perhaps you’ve traded directly with patients many times for things like website design, computer repairs, and more. However, it’s likely that the value of the service that you provided was far greater than the service they provided to you, therefore leaving you feeling a little uneasy at the inequality of the transaction.
Dr. Sathish Chari of Chari Family Dentistry in Scottsdale, Arizona, has been trading in this way for many years. However, about 8 years ago he discovered a way to eliminate the inequality and ensure that both parties received services in equal value to the services that were provided. He joined a Trade Exchange.
A Trade Exchange is similar to a bank for trading products and services. Members of the Trade Exchange can freely buy products and services from each other with a form of currency, called a trade credit. Payments are exchanged and calculated through a computerized transfer of funds between the buyer’s and seller’s accounts. Once you have accumulated trade credits through the sale of products or services to members, you can spend those credits on any member services or products.
Dr. Chari has been a member of Tradesource, a Phoenix-based trade exchange, and one of the largest in the state of Arizona with over 1000 members for over 8 years and just loves it. He attributes part of the consistent growth of his dental practice year over year to being a part of the trade exchange.
“Not a lot of people know about trade. It surprises me,” said Dr. Chari
According to Dr. Chari, the dental industry is changing rapidly. “Insurance companies are notching down reimbursements putting more and more pressure on dentists to serve more patients to make the same amount of money.” “Gone are the days when they used to reimburse you fairly.”
Because of that, Dr. Chari has chosen not to become a preferred provider with insurance companies. Choosing rather to set his own prices for services rather than what accepting what the insurance companies will give him.
Growing a practice without the help of being an insurance company’s preferred provider is all about word of mouth, according to Dr. Chari. And being a part of the Trade Exchange has helped get the word out and bring in new customer-both trade and cash.
While some doctors prefer to only trade for their labor, Dr. Chari trades 100 percent on every service he provides whether a root canal, braces, or cosmetic dentistry.
According to Dr. Chari, it just makes sense given the value of the benefit he will receive in return when he trades. “It’s all about hard dollars, versus sweat equity.”
He has traded for things like condos in Hawaii, eating out, website design, home and office repairs and maintenance. He was also able to trade for approximately $100k in services and products to build out his dental office.
Dr. Chari says “Trade is a good marketing strategy in today’s economy. It just makes sense.”
Mary Ellen Rosinski is the CEO of Tradesource, Inc., Arizona’s largest trade exchange with over 1,000 members. For more information go to www.Tradesource.net.