Barter of America.com Works With ...
Restaurateurs/The Food & Beverage Industry
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(minimum of 15%) at restaurants, for limousine services, haircuts...
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Restaurateurs/The Food & Beverage Industry trades in some of
the most perishable inventories in any industry In today's marketplace,
You can never make up the revenue of a lost dinner reservation.
However, you can use barter to expand your cash budget by using
available inventory as currency in exchange for media services or
merchandise that you would buy for cash if you have the budget.
What’s more, other Barter of America clients can utilize those
services as part of their transactions. up to four out of five new
product introductions in the food and beverage industry do not succeed
as planned. This can lead to a quandary for industry marketers and
financial professionals. Many times, companies opt for one of two
solutions -- slow down the flow of new product
introductions or dispose of the excess inventory at significant
losses. Barter affords the opportunity NOT to discount your inventory,
or lose a sale, while increasing revenue. The transaction allows
your company to achieve higher occupancy and average rates with
the prospect of repeat business. Barter also results in increased
profit from cash flow savings, incremental revenue and reduced marketing
expenses. However, by trading inventory in exchange for trade credits,
which are used to acquire the media, goods, and services they would
normally acquire for cash, restaurateurs/manufacturers can realize
profits where significant losses seemed likely.
Corporate trading provides solutions to some of the food and beverage
industry's most difficult problems. Food and beverage restaurateurs/manufacturers
need to test a variety of new products in a marketplace that has
the desire to embrace only a small percentage of them. In response,
company executives can count on a corporate trading transaction
to cover the wholesale value of their products or services. This
allows them to become more creative in their marketing of those
At some point, most major food and beverage companies have found
new labeling requirements have made some of their inventory unmarketable
in the U.S. Corporate trading can also be a problem solver when
overly optimistic forecasting creates a warehouse full of stock.
Products geared to warm or cold seasons can be remarketed in those
parts of the world where the weather is the opposite of that in
North America. Excess inventory can also be effectively distributed
in those markets, virtually anywhere in the world, where the manufacturer
has no channels of distribution in place.
One of the more interesting aspects of one of the world's largest
and most prestigious food manufacturer's business model is also
one of the more potentially troublesome aspects. The manufacturer
is a member of a grower’s co-op, owned by the growers. This
means that in addition to owning the rights to the entire harvest
in any given year, they are also bound by agreement to purchase
all of the same harvest. Usually, there is sufficient capacity to
handle the harvest volume, but occasionally, the supply exceeds
the demand, and the client often owns more fruit than it needs.
We Provide Solutions
Since bananas are particularly perishable, time is of the essence
in such a transaction. Barter of America agreed to purchase 4 million
pounds of the bananas for its full selling price in exchange for
By contacting Barter of America, the timeliness of the transaction
was preserved. The manufacturer is relieved of the necessity to
dispose of the product inventory themselves while, at the same time,
avoids the cost of liquidation. The barter credits received in the
transaction were used to purchase pre-planned media/advertising
to promote orange juice.
Restaurateur/Food & Beverage Trading
Barter of America works with clients in the food and beverage industry
in a variety of ways. In addition to moving products that have not
fulfilled sales targets, Barter of America's clients have traded
real estate, Land, manufacturing machinery, and other no longer
needed or under performing assets.
Corporate trading has provided effective solutions for food manufacturers.
It has remedied inventory situations in raw materials in which the
manufacturer was able to write them off with no charge while, at
the same time, acquiring advertising, printing materials, legal
advise, employee incentives…and more with the trade credits
they've received as part of the transaction.
One food-manufacturing client has an advertising budget of $2 million.
In some years, this ongoing Barter of America client has had as
much as $8 million of that buy acquired through corporate trading.
BoA Serving Restaurateur/Food & Beverage
Today, as many as 80% of all new product introductions in the food
and beverage industry do not succeed as planned. What's more, nearly
2/3 of all SKU's in supermarkets do not sell more than one unit
per day. With those kind of numbers, manufacturers face the difficult
problem of either curtailing product introductions or disposing
of excess inventory at significant losses.
However, Barter of America provides solutions to some of the industry's
most pressing problems. Among them is the need to test a variety
of new products in a marketplace that will only accept a small percentage
of them. Barter of America can acquire the products whose testing
yielded less than stellar results. Those manufacturers who know
they can count on a corporate trading transaction to cover the wholesale
value of their products or services can become more creative, if
not more aggressive, in their marketing efforts.
The food and beverage industry has long benefited from corporate
trading transactions. Barter of America has taken product whose
only problem has been mislabeling or changes in packaging, and distributed
them outside the normal chain of distribution. In addition, items
that are seasonal, geared to warm or cold seasons, can be remarketed
in those parts of the world where the weather is the flipside of
what it is in North America.
Invite an important client and enjoy a productive
meal at one of your favorite BoA restaurants. Or, treat the family
to a weekend of fun, with miniature golf and pizza. Be a hero and
treat your wife or secretary to a day of pampering at a local spa.
Or maybe have something practical done, like having your shirts
dry cleaned - all made easy by simply using BoA Trade Certificates
and paying for everything with barter!
BoA issues Trade Certificates for a quick and easy way for members
to make purchases at small retailers such as restaurants, hair salons,
delis, dry cleaners, golf courses, candy shops and more.
Members purchase BoA Trade Certificates The BoA Office in $100
Booklets (5-$2's, 4-$5's, 3-$10's and 2-$20's.) They are ideal for
gift-giving and rewards for that special employee.
BoA Members simply present BoA Trade Certificates in payment for
the check at participating facilities - just as they would cash.
Sales tax and gratuities are always paid in cash - but everything
else is paid with BoA Trade Certificates. BoA Debit Card also available
as a form of payment in some establishments.
Entering into a barter agreement with Barter of America enables
- Use available inventory as currency
- Support the sales effort with a targeted media campaign
- Bring new business that does not conflict with your cash customer
- Impact low season and gap periods with tactical advertising
campaigns and barter customers
- Increase rate and awareness with a consumer campaign to drive
- Finance capital improvement and other FFE costs
- Handle an unexpected dip in occupancy
Save cash, increase profit!