Through Bartercard, New Zealand accounting firm Thompson & Partners has been able to utilise unfulfilled capacity and generate new business. Now they advise their own clients about how to use Bartercard to move excess inventory, manage their cash flow and increase occupancy in slow or idle periods – all on top of their regular cash paying business!
Thompson & Partners joined Bartercard in June 2011 after recognising the numerous business benefits of an alternative business currency exchange system. By using Bartercard, Thompson & Partners have filled unused capacity by allowing Bartercard members to attain their services and pay in Trade Dollars. These Trade Dollars are then used to offset cash expenses in the business.
Some typical business items purchased through Bartercard are:
• Client gifts
• Staff incentives
• Personal drawings for owners
3 ways Thompson & Partners Ltd advises small businesses to use Bartercard to grow their business:
1. Utilise excess stock and increase occupancy
Put inventory, equipment and employees to good use. Bartercard lets members convert downtime and spare capacity (think seasonal markets) into new revenue which would not have been available otherwise. It also provides a system to put that excess to use in profitable ways without the need to discount heavily.
2. Generate new business
Bartercard’s large referral network allows members to increase their customer base and expand their geographic reach. The new customers generated by Bartercard are on top of existing cash business, and therefore don’t interfere with existing business models. Bartercard can increase business through the door by 5-15% and increase net cash profit.
And, with Bartercard transactions, each time a member spends, it will come back to them in the form of new business from another Bartercard member business.
3. Reward staff
Using Bartercard Trade Dollars as employee bonuses, incentive schemes or gifts is a great way to reward staff without having to increase salary or wages (anything that goes through the payroll will incur PAYE).
For example – a small manufacturing company can reward their top sales person with an incentive by purchasing a reward (such as a dinner out) through the Bartercard network using accumulated Trade Dollars.
For more information visit thompsonpartners.co.nz