Members of no-cash networks say it’s a great way to market their businesses.
Hugo Flores has paid $2,000 for dental work, $650 for veterinary services and $750 for a weekend a resort condo in Destin — without spending any cash, swiping any cards or writing any checks. He did however, paint a few buildings. Hugo Flores’s painting company Master Hand’s Custom Painting, is a member of Jambalaya Trade Exchange in Ascension Parish, one of over 200 businesses in the Parish that participate in a trade marketplace.
Companies — everything from restaurants to marketing firms to landscaping companies to auto-repair shops — offer their goods and services to others in the network.
They spend the “trade dollars” they earn from the work at other businesses.
Bartering is hardly new; an age-old way to trade goods and services. It has moved into the mainstream thanks to professional barter exchanges that provide a venue for swapping goods and services, getting rid of excess inventory, turning downtime into revenue and attracting new business.
Here’s how a barter exchange works: A business offers a good or service for trade and in return, receives a trade credit based on the dollar value of that offering. That credit can then be used to “purchase” a product or service from someone else in the barter system. While no money is exchanged, these deals are considered cash transactions and must be reported as income.
“The people who really who really benefit from who really benefit from Trade Exchanges are people who are looking for new customers and are flexible in their buying habits–they’ll change where they buy their printing and the pest control company they’re going to use,”explains Tim Bergstresser executive director of the Jambalaya Trade Exchange .
Barter was once limited to specific geographic regions, but thanks to the internet, barter exchange members can now trade with members in Ascension Parish, Baton Rouge, New Orleans, Lafayette, Slidell, Lake Charles, Memphis and even Birmingham.
“When someone joins an exchange they’re exposed to hundreds of new potential customers locally and thousands around south Louisiana.
“With competition so stiff today, barter helps drive those customers past your competition and into your door.”
For more information check out the JTEX website.
