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Corporate Barter can be used as a strategic tool for Business models with unutilized assets, perishable inventory, excess capacity, regular operating expenses and low variable cost of goods.
a. In printing business, the incremental cost of providing printing is limited primarily to the cost of raw materials – such as paper and ink. This industry requires large capital investments of equipment, machinery and skilled workers.
Barter is able to generate new incremental customers in order to utilize unsold press time and when presses are not running at maximum capacity. Although it is ideal to have press time running at capacity 100% of the time, this is not the case.
Barter is also able to assist the printing company to offset budgeted expenses by filling unsold and idle press time and simultaneously generating new incremental customers they otherwise would not have.
Other ways where print and signage companies can work on their short-term and long-term needs is in exchange for trade credits of the same value or getting new customers on job-by-job basis.
b. Barter as an additional marketing channel to acquire new sponsors can be a very attractive method to add incremental sponsorship revenue. The cost to add additional sponsors is very minimal and the additional revenue would provide trade credits which then could be used to offset budgeted expenditures such as :
- Media and Advertising
- Printing
- Travel and entertainment
- Promotional products
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