Americas Barter Exchange (ABE) operates a Retail Trade Exchange in Provo, Utah, where we have been in the Barter Industry since 1994. For companies that want to increase sales and reduce costs, ABE offers an alternative distribution network.
Let’s face it, most businesses do not run at full capacity, yet with their overhead (or fixed costs such as rent, utilities and salaries) already paid, additional sales are the most profitable. In other words, if fixed costs are already amortized on the “usual” sales, the expense of additional sales is only the incremental cost (i.e. the direct cost) of providing the product itself.
For example, a restaurant might have the ability to serve additional patrons. Since the regular fixed costs are covered from existing sales, additional customers can be accommodated for only the direct food costs – about a quarter of the menu prices. A hotel with empty rooms loses the ability to ever sell those room-nights. Many businesses get only one opportunity to sell their product. Events tickets, cruise line tickets, professional billed hours and many others examples are either sold in the moment or the opportunity – and revenue – is lost forever.
For a professional person that bills for their time, additional hours have essentially no out-of-pocket costs. Or consider a manufacturer that has unsold inventory – perhaps last year’s model or production overruns. An alternative market might well be able to move it, freeing up valuable warehouse space and changing the inventory into a liquid asset. Just getting rid of stale inventory will usually boost the morale of employees and owners alike.
Americas Barter Exchange has the ability to generate additional sales using a barter solution. The resulting trade credits can be used to offset existing cash expenses or to increase cash sales. Trade transactions should never displace cash sales. Barter transactions are a means to an end; in the final analysis the world runs on cash. Products and services that are sold through the trade exchange use ABE’s trade dollars as the medium of exchange. ABE manages the exchange, handles the accounting, issues statements, extends credit lines, markets products and can serve as a buyer’s agent. Functionally ABE operates somewhat like a credit card company or a bank. Under the TEFRA Act of 1982, Americas Barter Exchange is recognized as a Third Party Record Keeper by the U.S. Government.
According to the International Reciprocal Trade Association (IRTA, the Industry Association): “the World Trade Organization estimates that 15% or $8.43 billion of the $5.62 trillion in international trade is conducted on a non-cash basis. IRTA estimates the 2009/2010 industry trade volume was $12.0 billion.”
Americas Barter Exchange has the capability of interacting with other companies in the Modern Trade and Barter Industry, both across the Country and around the world. The management of ABE has over 30 years experience in the Industry. We are well positioned to present innovative ways for members to improve their bottom line by increasing sales and offsetting cash expenses. Many members use barter as a way of maintaining their personal lifestyle, thereby freeing cash to remain in their business endeavors.
For further information, email us at: firstname.lastname@example.org or telephone (801) 802-0322.