Understanding the word – Barter

 Trading between either individuals ,organizations and even

Nations by which goods or services are directly exchanged
for other goods or services without using a medium of
exchange, such as money..
Barter - Individuals
Barter - Business
Barter – Countries

China, India & Pakistan are bartering with Iran by paying

in wheat, soya bean and other goods in exchange of oil
Barter – Countries

Sri-Lanka is trading Tea and commodities

with Pakistan against Cement
Barter accounts for over 30% of the world’s business

Some Examples of Direct Barter

Pepsi sold their marketing rights to Russia for ships

full of vodka

Mercedes Benz traded buses with Ecuador in

exchange for bananas

KSA buys military equipment, aircrafts from US in

exchange of oil
The Wall Street Journal states that 80% of Fortune 500 companies have
successfully used barter as a financial tool
Understanding Changing Business Environment

Current Regional Economic Scenario

Developed players coming to developing markets

Political

Social

Ethnicity

New Entrants

Large Businesses
Challenges for your Business
Perishables – Media, Hospitality, F & B, Airlines, Services

Excess stocks, unsold inventory and underutilized capacity

Looking into gaining new and incremental market share

Your fixed costs are high and marginal costs are low

Looking for optimization of cash and save cash outflow

Scarcity / low on cash liquidity

Here is a win win - Barter !
Advantages with Barter
When Selling

Converting Excess Inventory to Revenue

Monetizing underutilized and perishable capacity

Receiving new customers and gaining market share

Acquiring new & incremental business beyond cash market

Generating realistic value without liquidation

No cannibalization of cash business

Advantages with Barter
When Buying

Barter as a method of financing

Purchasing at marginal cost

Realistic rates and terms offers

Monetizing perishable capacity and excess stocks

Fulfilling expenses with minimum cash requirement

Fulfilling personal wish list - not possible with limited cash

WISH IT WAS THAT SIMPLE
Direct Barter Limitations
Limitations of Direct Barters
Limited to goods and/or services of single trading partner

Mismatch in size of demand on either sides

Disagreement on value treatment, preposition, terms, etc

Need bases rather then being proactive and strategic tool

Geographical restrictions and risk of unknown

Bookkeeping and tracking difficulties

Barter value retention and expiry

Financial risk if one party goes out of business

What could be a solution !
ValueX
 Understanding BizX platform
Basics

 Corporate Trading based on Barter credit points

 Safe and secure trading without third party risk exposure

 New Sales, New Clients, Incremental Business

 Barter credits utilization against purchases and budgeted expenses

 Revenue creation with value lock & deposit facility in barter credits

 Better turnover and strategic utilization of goods and services

 Maximum return from spare capacity, perishable inventory, excess stock

 No expiry of barter credits

Our Value Proposition
Save Cash

We help companies create value from

excess or slow moving inventory or
downtime with trade credits.

Flexibility Increase Market Share

Trade credits never expire and ValueX We are able to create new and
can be used with any of our 100+ Credit additional sales channels
partners offering a variety of through our business partners.
services.

Record Keeping
We provide monthly statement and
current account balance recorded
within VAT guidelines. Book keeping
and tracking is made easy
 Industry Purchase

Latest Examples
Newspaper Cars, Fof
& B,BizX Trades
Gift Vouchers

Cars Media, Electronics, Events, Entertainment

Radio Holiday Packages, Gift Items, Media, Cars

Diamond Jewelry Outdoor Media, Radio Spots

Casual Dining Flyer Printing, Radio

Fashion & Retail Event Space @ Dubai Bridal Show

Health & Fitness IMAX Movie Tickets, Gift Vouchers

Shopping Mall Radio Spots Campaign, Newspaper,

Office Furniture Wafi F & B, Commercial Vehicles

 Potential Barter options with BizX
 Automobiles, Electronics, Hospitality, Hotel Rooms, F & B

 Training & HR services, IT & web development

 Legal Services, Lawyers, Audits & Consultancy

 Creative, Advertising, Branding, Stands, Photograpy, Printing, Signage

 Media – Outdoor, Newspaper, Radio, Online, Magazines, TV.

 Events, Exhibitions, Trainings & Sponsorship

 Marketing & PR, Online Banners, Email Shots, SMS

 Entertainment, Shopping Vouchers, Movies, Dubai Dolphinarium

Positive or Negative
Many years ago two salesmen were sent by a British shoe manufacturer to
Africa to investigate and report back on market potential.

The first salesman reported back, "There is no potential here - nobody wears
shoes."

The second salesman reported back, "There is massive potential here - nobody
wears shoes."