Barter Trade

[iQing]

I guess this topic is interesting as people r interested in it...
and we have a barter trade agent Silverblue to share about it... (1st hand knowledge)

barter trade... I heard is a great concept
it's profitable as the capital to set up such biz isn't big and it's B2B business...

just recently I have attended a seminar... the speaker is the owner of a barter trade company..nhe's Mr Teng han Ming
if i have no mistaken.. the name of the company is Just Better (M) Sdn Bhd

and he explained lotsa advantages of barter trade...
didn't record all down.. base on my memory.. barter trade

1. if u r a bizness man and u can't clear ur stock, let's say u have 1000 books and u can't sell... take them to barter trade co and change for 500 botols of water and u might sell it in just a week for stock clearance... it promotes liquidity of money... so that ur money dun stuck

2. this applies to non-business people as well.. if u have lotsa old CD or bike... u can change for other stuffs too.... hahaa.. at least u dun have to throw it away

3. through barter trade, u have done free advertising.. like u change 100 botols of water of ur company for other stuffs, ur water circulates around and ur brand goies everywhere..

and so on... etc

that's all for now... hope to hear more about it later...

"think, try and triumph"

iQing

[__earth]

I think he overemphasized the benefit of barter. And it?s odd to see how barter could help in liquidity.
In fact, the reason why we switched to monetary system is because the barter system and liquidity does not go in the same sentence.
And when you talk about trading in old stuff, you need to keep in mind the degeneration of the capital. You simply can?t trade an old Corolla for an AMD 64-based computer.

Barter is good, when both parties have mutual interest but mutuality is a tough thing.

Anyway, it's easy to see why he is biased to barter trading system.

[Thirdshifter]

__earth almost summed it all up why it won't work. I'll have to add that barter or simply Swapping stocks is still being practiced in business.

Most recently, Car dealerships in USA are starting to auctioning their Car inventories with other cars from other dealerships. It's a good way to get more varieties of cars in their own parking lot. I can't however see this happening in all businesses.

[Schye]

Thanks for setting this topic up as i am quite interested in it.Waiting for our agent silver blue to reply ;)

[littlebigone]

i think the barter system that is being talked about is a "fake" barter system. It really is a points kind of system, where you can spend as much money as you want as long as in provide an equal value in return, products or services.

So say A has a restaurant, and is part of this barter system, then that is the goods that he will return to use the system. He can go to B, who say has a shoe store, and buy a pair of Adidas sneakers, using his Barter card for C number of points. Now he owes the not the store owner B, but the collective system C amount of food from his restaurant.

Does that make sense? I think in a small community, this will actually raise the productivity because you will encourage a lot of recycling of the flow of "money" within the community.

[iQing]

oh guys,...

i have to update something coz I forgot to write it on my first post

Barter trade includes services as well...
Mr Teng say that If u open a syampoo servis, or a bar...
u can make it as coupon or pakage form and send it to barter company..
it still valid

another thing...
For sales people scare to do becoz...
u sell a stuff to people on the street...
10 people...
9 people reject u... (malu)

but for barter..
Mr Teng do bizness with 10 people...
9 people accept him....

bisness people sometimes got lotsa things that cannot be cleared and they like to change other stuff to sell them away fast (for eg, books change for mineral water and the water can be sold away faster)

that's why people like barter biz..
it can be done as B2B or B2C... no problem...

it's not popular or highlighted in malaysia but it's a trend in the world..
malaysians r missing opportunity...

and finally.. a word from Mr Teng...
i would like to share one of his phrase that motivates him to become rich..

[The world is...
a hell for the poor people
a heaven for the rich people]

that's why wealth can be important... just don't let your greed overcome u lah...

"think, try and triumph"

iQing

[Schye]

I got the idea now.So anyone can trade with others in the form of exchange it with other things, services or money.
Those who need anything will find it out through the network, hence more sales will be done.
But how the company earn from those trading?
by taking certain percentage of commission per deal?

[kelvinlym]

i think the barter system that is being talked about is a "fake" barter system. It really is a points kind of system, where you can spend as much money as you want as long as in provide an equal value in return, products or services.

Yes, I totally agree with this one. That's the total Barter card concept.

There are some downfalls too. An owner of the Dockers shop in One Utama used to be a Barter card member. But because of the nature of his business (selling nice pants) and not a service, s/he had problems building up the points needed for him to make this bartering thing worthwhile.

So, he just quit. Maybe, this is not for everyone after all.

[Randomphantom]

Although with the point system in place, how do they ensure that both parties have mutual interest? And do they really sell the goods/services they get in return? I mean, whats a bookstore doing with mineral water on their shelves?

I can only think of affiliate programs/package deals of some sort.

another thing...
For sales people scare to do becoz...
u sell a stuff to people on the street...
10 people...
9 people reject u... (malu)

but for barter..
Mr Teng do bizness with 10 people...
9 people accept him....


didn't really understand why&how did the 9 people accept his stuff. Come'on, if he can't sell these things, do you think you can? I wouldn't buy old cds to sell...too bizarre if this really is the trend overseas.

Commission... does it only go to the barter trade company in question.. =p