Trade \trâd\ vb 1: to give in exchange for another commodity (i.e. barter) 2: to engage in the exchange, purchase, or sale of goods.
Tradebank: Canada's Barter System
Wouldn't it be great to be able to purchase what you are looking for by simply trading your goods or services? Historically, two companies directly exchanging products and services of equal value was the only way to experience the benefits of trade. At Tradebank, we provide a revolutionary barter tool for businesses throughout Canada. Tradebank is an extensive network of thousands of businesses, where all kinds of products and services are traded multi-directionally. No longer do companies have to search for one-to-one direct trade relationships.
HOW TRADEBANK WORKS: WATCH THE VIDEO
Our clients have the flexibility to use their "trade credits", which we call TRADEdollars, earned to purchase what they want or need from thousands of businesses within the Tradebank barter network (Each TRADEdollar is equal to one Canadian dollar.) Tradebank provides the platform where trades come together for our clients, much like a clearinghouse does for stocks, or a commercial bank does for cheques. Just like a brokerage firm, Tradebank receives a commission on each purchase transaction.
Join THE Tradebank BARTER NETWORK!
Our services include sending you new business opportunities, facilitating your purchase requests, and automating the record for each trade transaction. In addition, all transactions can be processed on-line immediately, so there should be no receivables, collection efforts, or bad debts involved. Business owners have benefitted from bartering with Tradebank Canada since 1996. View the frequently asked questions section.
You choose whether or not you wish to accept the opportunity, and as such, are able to trade your underutilized capacity or excess inventory.
By trading, you are always buying at your wholesale Cost of Goods. Almost every business has the ability to increase their gross revenue by at least 5%-10% without having to increase any of their fixed overhead costs. Tradebank would like the opportunity to bring you that extra 5%- 10% in annual revenue thereby making your business more profitable.
Bartering Goods through Tradebank Canada Creates a Win-WIn-Win Situation
WIN: First, the seller in each transaction is receiving new incremental business they would not have otherwise received.
WIN: Second, the buyer in every transaction is able to purchase valuable goods or services using TRADEdollars instead of cash, turning their extra capacity or unsold inventory into purchasing power.
WIN: Lastly, Tradebank makes a brokerage fee for putting together each transaction and administering the entire network.
HOW TRADEBANK WORKS, THE MATH
Cost of Good Sold
In order to understand the math, it is important to know what we mean by Cost of Goods Sold. Cost of goods sold are the direct costs attributable to the production of the goods or services sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labour costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs. In considering selling through a barter network, the cost of goods sold that you should be utilizing in calculations are the direct costs in the additional business. Unlike traditional cost of goods sold, allocations of fixed costs are not applicable in the decision-making process for incremental barter transactions unless additional labour or capital will have to be acquired in order to complete the work.
The savings benefit of bartering (i.e. the “Math”) is best understood through an example.
Let’s say you are a restaurant owner. Your cost of goods (or incremental food & beverage cost associated with an additional new customer coming into the restaurant) is 35%.
You need a new menu designed and printed. You have a CDN$ quote for $2000.
If you were not a member of Tradebank, you would simply order the menus and cut a cheque for $2000 out of your existing cash flow.
As a member of Tradebank, you have the opportunity to obtain the menu through your new Tradebank Account.
SAVINGS WITH TRADEBANK = $2,000 - $959 = $1,041
So, purchasing the menus through the Tradebank system saved you, as the restaurant owner, $1041. This savings can be repeated again and again through other purchases the restaurant is going to make on an annual basis.