Information Currency

1802 E. BROAD ST.
SAVANNAH, GA 31401

ph: 912-344-6396

Research: Existing Barter Industry Solutions to Excess Stocks

In search of a fuctional transaction method using a barter currency, the organization tested a barter solution on a building materials distributor with over a million dollars in non-productive stocks. Given the size of this transaction, a "corporate' barter house was chosen to facilitate. A contract was signed where the corporate barter house bought the non-productive inventories at "full value" (the original cost to the building supply company). The intent of the contract was to pay the building supply back in advertising. The corporate barter house required that  for every dollar "spent down" in trade the building supply company would have to pay five dollars in cash. The corporate trade house committed to matching any proposed quotes. This model works well for Fortune companies, but this client did not have enough advertising "spend" to take down the trade dollars.

It was evident after this barter research that the leverage of advertising used by the corporate barter house was not functional in the smaller building supply market. The organization then worked to return value in other building materials products or in computer systems. This was fairly successful. But the most successful test was using fulfillment of the trade contract through the retail barter house. The retail barter house manages the accounts of a local group of small business traders.

Copyright informationcurrency.org. All rights reserved.

Web Hosting by Yahoo!

 

1802 E. BROAD ST.
SAVANNAH, GA 31401

ph: 912-344-6396