If you’ve mastered the art of barter, then you’ll understand the principles of “cash conversion”.
Barter trading is all about creating wealth through the exchange of goods and services without the use of money.
The following is an excellent example of a cash conversion scenario.
Allan has a local printing business and he is looking to purchase a new lounge suite for his home. The lounge suite that he likes is a bit beyond his price range.
Allan decided to offer the furniture store owner printing to the value of the lounge suite in exchange for payment. Unfortunately, the store owner did not require $3,500 worth of printing at that time.
However, the store owner decided to take up the offer and he asked Allan to print enough colour fliers to do a local letterbox drop. The store owner contacted a number of his suppliers and asked them to contribute toward the printing cost and he would include their products in the promotion. The contribution fee also included the cost of delivering the fliers to local households.
The barter deal was a win-win for all participants and worked well toward promoting more cash sales for the furniture store owner and his suppliers.