A modern-day exchange
It’s trading chips for a twinkie.
Bartering is one of the oldest ways of doing business. Mike Fowles, northern Utah’s sales representative for Merchant’s Barter Exchange, said bartering is only getting bigger and more popular.
According to Fowles, bartering is a great way to grow a business. He said the barter exchange is a community of businesses that exchange goods for another business’ goods and services. Fowles said just one of the benefits of barter is that it can be a three or four way exchange.
“Let’s say I have bottled water that I produce but I need flowers for some event,” he said. “I can trade my water for your flowers. But if you are the flower company, you don’t need water but some pictures taken for advertising, so you can trade that also.”
Because each product has a cost, Fowles said the barter exchange works to give it a dollar-by-dollar trade on something directly or indirectly needed.
“(Bartering) only costs you your costs of goods,” he said. “It’s not trying to take away your cash business. It’s bringing in new business you haven’t had before.”
According to the Web site www.merchantsbarter.com, 35 percent of all world trade is accompanied by barter, which accounts for nearly $700 billion in commerce each year.
Fowles said the Merchant’s Barter Exchange, is just one of a few corporations helping businesses to grow by trade. He said he helps businesses trade from Ogden northward.
Fowles said the Merchant’s Barter Exchange is a nationwide company with eight representatives in Utah. The company began in 2000 and is now one of the fastest growing trade exchanges in the nation.
Fowles said by taking part in the barter exchange, companies will not only get new business but, more importantly, save money by trading.
“We don’t want you to trade for everything,” he said. “There are probably things in your business that you don’t have money for and that’s what is ideal to trade for.”
Fowles said by joining the barter exchange, it allows a company to trade what they have too much of for the things that they need.
According to the Web site, more than 65 percent of the corporations listed in the New York Stock Exchange barter. Fowles said just a few of the major corporations taking advantage of the barter exchange are Xerox, Mattel, IBM, Chrysler, Hilton Hotels and Shell Oil.
Fowles said the barter exchange is looking for anyone who wants to help boost their business.
However, he said furniture businesses, office supplies, flooring, auto repair and auto body, pool and spa, dentistry, and printing and advertising companies are needed.
“These businesses work best because they tend to need more than one item in return,” he said.
Fowles said by participating in the barter exchange, it allows a business to be exposed to thousands of other businesses, which he said is a great advertising tool.
Fowles said when advertising many people turn to the Yellow Pages, radio or television advertisements to help their business.
Fowles said for some companies, those advertisements may help grab business, but for others it doesn’t seem to always get the return wanted or needed.
“Because you are exposed to thousands of businesses through this exchange, it becomes guaranteed advertising,” Fowles said. “It lets people know you are part of the exchange and you are doing a great service. We are promising you to bring you business.”
To become involved in the barter exchange, Fowles said there is a one time sign-up fee of $595. He said there is also a cost of $15 per month. Fowles said it is a small fee but in the long run it will save the business a substantial amount of money.
“Some people may say ‘gee there are some costs involved,'” Fowles said, “but let’s say there is something which costs $2,000 to get, but with the barter exchange you can get it for $200 because you have the goods and services you are providing for them.”
Fowles said by taking advantage of the barter exchange, businesses will see the guaranteed benefits.
“Bartering is just a great way to boost your business fairly,” he said.
–courtnie.packer@aggiemail.usu.edu