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Tricks of the Trade: Businesses barter for goods, services

By Angela Carter, Register Staff

Bartering — the centuries-old system for trading necessities from food to building supplies, or to pacify an enemy — is still paying off.

And for Chris Loynd, director of marketing for The Maritime Aquarium at Norwalk, the returns on bartering are expected to last beyond the spring and summer, Maritime's strongest seasons. About 30 percent of the facility's annual foot traffic of 400,000 to 500,000 occurs in July and August alone, he said.

The aquarium joined Milford-based Barter Network Inc. earlier this year and traded $25,000 worth of general admission tickets for the equivalent amount in trade credits that were used for advertising services. Maritime purchased ad space from Direct Advantage, a direct mailing service, and WindCheck, a magazine for boaters.

"We probably wouldn't have used those outlets otherwise. It's going to mean incremental business. That's not something I would've risked with cash," he said. "It's incumbent on the Barter Network to trade those tickets to other members in the network. I was able to justify it to the organization and our CFO (chief financial officer) loved the idea."

So, between ad responses and the bartered tickets, Maritime expects to grow the number of people coming through its doors for the popular "Penguins on the Loose" program that allows visitors close proximity to African penguins; and to thereby boost spending on the Imax movie theater, Long Island Sound cruises, a gift shop or the Cascade Café.

Admission to the aquarium is free for children under 2, $9.75 for kids 2 to 12, and $10.75 for seniors and $11.75 for adults. Loynd said the traded tickets are mixed across age groups and do not expire.

"We have sharks and seals and all kinds of great stuff that aquariums have. We're really pleased with the barter concept. I told Clay, as soon as they're done with the firs t $25,000, I'll definitely consider doing this again," Loynd said of a discussion with Barter Network's founder, Clay Yalof.

Yalof said BNI is adding 100 to 150 new clients per year, who trade products or services at retail value. "The way economic times are right now, it seems barter is front and center. In this economy, we do very well because these are tangible needs," he said.

Barter agreements are only a portion of any member's overall business, Yalof said, not the foundation. "The goal is to bring incremental business, not to change cash clients into trade clients," he said. Sometimes brokers will make cash referrals.

BNI is the third party that plays two roles: marketing members' products and services throughout the network and brokering purchases with trade credits. For example, a landscape artist could use credits for barter services to provide incentives to his or her staff, to renovate a home or office or go on vacation.

"We really want to help the small and mid-size businesses that are hurting right now and not really getting any relief," Yalof said, adding that BNI itself lives the concept. The company has used credits to purchase office equipment, flooring and other items to set up its headquarters at 57 Plains Road.

Members pay a fee to join and BNI sets up an account and assigns each member to a broker. The network gets a commission on the transactions.

Members are able to give feedback on their experiences and quality is expected. Funds are escrowed before any job starts to avoid "bad debt," Yalof said. If complaints are lodged, they get investigated. Members can be ejected from the network under certain circumstances, he said.

"Most people think it's too good to be true. But as a business owner, you control how much you do. We don't want you to over-extend yourself," he said.

Senior Trade Director Mark Bastarache said he stays busy on the phone and keeping up with e-mail to find out what clients need, be it help increasing sales, moving excess inventory or gaining greater exposure.

"I'm always on the phone contacting my customers to present new barter opportunities in front of them," Bastarache said. "We're not trying to sell them something. We're trying to fill a need and save them some money."

Bob Fraulo, owner of Allegra Printing in New Haven, has discovered several benefits in joining the network.

"What's neat about it is I get to meet a lot of new businesses outside my customer base. I can build up credits and they have a lot of different services to offer from catering to hair care," he said.

Then there are things he would not be able to afford on a cash basis. "I can give perks to my workers and reduce expenses. I was able to provide someone with dental care. Otherwise, I couldn't have. We're so small," Fraulo said.

He also has generated cash customers by word-of-mouth. Allegra provides full-service printing of items such as calendars, forms, cards and letterheads, posters and banners, government budget books, binding and more. "I'm trying to beat the recession in my own way," he said.

The network has reciprocal agreements with 15 other barter organizations in the country, giving members even more options, Yalof said. "From Florida to Dubai, we can get it.

Testimonials

Motor Vehicle Network

We use our barter wisely, and BNI has given my company the ability to trade for most of our business expenses. From marketing materials to office equipment to hotel rooms for travel, bartering has helped us to grow our business and reduce our expenses. Scott Savage
Vice President and G.M., Motor Vehicle Network

The Red Barn

In the restaurant business, empty tables are always a challenge. BNI helps us fill those tables which allows us to spend our trade dollars on our business. Their customer service and attitude to "get it done" has made me a believer. I have been a member of other barter exchanges and BNI's attention to detail has made me a loyal member. Frank "Cheech" Nistico
Owner, Red Barn Restaurant

New England Flooring

My company had some excess flooring inventory that wasn't producing any revenue for us. BNI helped us sell that excess inventory through their barter exchange at fair retail pricing. I was able to spend my trade dollars on the goods and services that my company uses, helping me to conserve cash, a true Win-Win! We continue to use BNI for our spending needs. Keith Hemstock
Owner, New England Flooring Supply Company

A-Z Landscaping

The staff at BNI is the most experience staff that I have worked with in barter. They continue to bring new members into their barter network, which gives my business new opportunities for trading. Helping my business grow while saving me cash is what BNI is all about. Craig Gannon
Owner, A-Z Landscaping

Kaiser Battistone

BNI has helped me fill in my down times with new customers. This allows us to maximize our time and generate trade dollars for our spending needs. I'm a believer! Bill Hall
Owner, Kaiser Battistone

Saybrook Inn

We are always looking for new ways to grow our business. Barter has given us the ability to fill our down time using our rooms and conference facilities to generate trade dollars. Spending those trade dollars on landscaping, advertising, staff uniforms, web design and other items has allowed us to conserve our cash. BNI has delivered on their promise to bring us new business and save us cash! Saybrook Point Inn & Spa
Andy Abels, General Manager

Maritime Aquarium at Norwalk

The Maritime Aquarium at Norwalk partnered with Barter Network to attract new Aquarium visitors and save on cash expenses. Barter Network delivered on both counts. We have seen new visitors come through our doors because of our relationship with Barter Network and their outreach to network members. We then use our trade dollars to expand our marketing outreach to find new cash customers. Barter Network offered an inexpensive opportunity to stretch our marketing budget and was superbly executed. Chris Loynd
Director of Marketing
The Maritime Aquarium at Norwalk

Compugeeks

Compugeeks has been a member of Barter Network (BNI) for 6 years. They are a dedicated firm that really focuses on making sure your business gets the services it needs, on barter. John Ferrara and his team are always and readily available whenever we need them. No matter what we have needed, BNI has been able to acquire the services/products we need so we can save cash. There is a lot of competition in the barter world, but very few rise to the occasion every time like Barter Network. John A. Scharfglass
President
Compugeeks, Inc.

Luxurious Transportation Services

Bartering helps drive business to our company, allowing us to spend our trade dollars on business related expenses. My broker is always there to help with all of my purchasing needs. Why spend cash when I can trade for what I need. Barter Network always performs for me. Joe Montanez
Owner
Luxurious Transporation Services

Maui Wowi Hawaiin Coffee

Sales and marketing is critical to our business. Barter Network promotes my business through their network of members and brings my business new clients that I never would have gotten. I can use my trade dollars for advertising services that will help me grow our cash business. Barter works! Mitchell York
Owner
Maui Wowi

Island Storage

Barter Network has helped convert some of our excess capacity into valuable trade dollars. We are able to offset some of our cash expenditures by utilizing those trade dollars, and our broker really works hard in finding us what we need, helping us save cash, a true Win-Win! Lauren Nichols
Owner
Island Storage