Looking to Partner with a Barter Trade Company? Consider These Factors

If you think bartering is dead, then you’re completely wrong!

Though the meaning & concept is still the same, it’s now being used differently!

In layman's language, bartering is an equal trade or a cashless exchange system, where two companies trade goods or services directly, devoid of any cash involvement.

The bartering term is gaining traction among small businesses as it not just only helps minimise risks but fosters healthy business relationships.

However, it’s important to choose the right barter trade exchange as it’s critical for the success of your trade strategy.

Below are the factors to consider before partnering with the best barter company.

Factor #1: Consider their Experience

One of the important things that you should take into account is how long the company has been in the industry. When you get to know about the experience of the company you are about to choose, you would have an idea of its growth prospects and the nature of the people involved in the process. Make sure you choose a company with at least or over 20 years of industry experience. Also, don’t forget to understand the management profile to ensure your investment is protected.

Factor #2: Don’t Overlook Their Credit Ratio

Another factor that you should consider is their ratio of credits. If you want to check the efficiency of any barter company, make sure they maintain the right balance between the credits in their name to the number of products and services held by them. Make sure you avoid a new trade company in the industry as they might know the rule to balance their credit ratio.

Note: Always avoid a barter trade exchange or a company wherein more credits have been issued than the actual number of items. It is a pure indicator that may tell you whether you should choose such a company or not.

Factor #3: Check Their Transaction Fee

Before you partner with a barter company, you must check the transaction fee they generally charge. In general terms, a barter trade exchange usually charges a basic fee that goes anywhere from 8% to 12%. It doesn’t mean you will choose a company that will charge you even when you are selling goods or services. It is often observed that some companies charge a fixed membership fee as you join them. The membership fee can be per month or quarter. Though paying the membership cost isn’t a huge deal, make sure you check they are not charging anything extra.

Factor #4: Consider Their Marketing Strategy

Once you are done checking all three aspects above, you must check this important factor before you choose a barter company for business growth. Do thorough research to find out the marketing techniques they use to bring the results. Some barter companies still prefer a telephonic-based technique to inform about your business. But it is wise to choose someone that efficiently uses digital marketing techniques like mailers, digital ads, and more. The way the company shows your identity to others tells a lot about their way of working.

Factor #5: Know Their Members

Though the market is flooded with many barter trade companies, you should choose one that may cater to your needs. Lastly, you should conduct a complete background check of the members that are currently working in. It would give a quick idea of how long or strong your relationship would be with that trade exchange company. Make sure that the members should have similar interests. On the other hand, if you fail to find such personnel, check if the company can arrange a few employees, dedicated to your business niche.

Conclusion

There is no denying the fact that people are understanding the fact that the bartering system can be helpful in business circles. By keeping the above-mentioned factors in mind, you can choose the right barter exchange company that may facilitate seamless transactions while securing your goods and services.