increased profits

How One Business Turned Excess Inventory into Increased Profits Through the Power of Bartercard

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In this article Byron Smith, Managing Director of Total Finish Painting, talks about the benefits Bartercard has brought to his business since joining the network in September 2018. Byron says that as a direct result of joining Bartercard in just a short space of time, they have received a number of quote requests that they wouldn’t have necessarily received and secured more jobs because they can accept payment through Bartercard’s electronic currency, trade dollars.

Byron says, “We have been really impressed with how our Trade Broker has gone above and beyond in marketing our company’s services across the network. We are regularly receiving referrals which not only is a good endorsement for our business, but it also shows the power of Bartercard and how easy it is to build your client base further. We are really excited about the impact Bartercard will bring to our cashflow and the opportunities it presents”.

Bartercard provides business opportunities to its members by making use of unused trading capacity and excess inventory to increase profits and get new customers, and Total Finish Painting Contractors is just one of the Bartercard members delivering professional results for all their clients’ painting and decorating needs throughout Canterbury and wider South Island region.

Bartercard simply allows its members to pay for products and services using trade dollars instead of paying in cash. These trade dollars are then used to offset cash expenses within your business. Trade dollars are a well-recognised and accepted method of payment in New Zealand. One trade dollar is equivalent to one New Zealand dollar for all accounting and taxation purposes.

Each time you spend with trade dollars, that expense will come back to you when you get more customers from another Bartercard member. New customers generated by Bartercard will be incremental to your existing cash business, and therefore will not interfere with your existing business model.

You can also download the free e-book, ‘How to Use Bartercard to Grow Your business’ to find out how much you stand to gain from joining the Bartercard network.  For more information on about customer loyalty schemes, increasing profits and getting new customers please go to www.bartercard.co.nz .

 

Bartercard Discuss The Real Cost of Discounting

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With such fierce competition and all consumers looking to bag a bargain, it’s no wonder we turn to discount websites such as GrabOne, TreatMe and Groupon for offers. Why wouldn’t you? But as a merchant and small business owner, have you worked out the real cost of discounting and the impact it has on your business? Daily deal websites charge a fee of approximately 15-20% of the sale price and stipulate that the offer presented must be at least 50% off the original sale price.

It’s easy to think by offering a discount you’ll attract new customers and they’ll leave happy because they haven’t paid full price, but discounts cost money, and not just to your bottom line. So, by reducing your price by just 10% on a margin of 40%, your sales have to increase by 33% in order to make the same profit.

That’s a big ask in a competitive market, especially when you add a fee onto that.

Discounting can also have an impact on your brand reputation as highlighted in an article, when an Auckland pizzeria refused to accept a customer’s GrabOne voucher. All these aspects impact your bottom line.

Bartercard is not a discount service, and while there are fees associated with being a member of the network, it’s a mere 7.5% in comparison. Bartercard allows members to grow sales by 10% or more within the first 12 months of becoming a member and they can prove it – no discounts are required!

So, do your sums. Does it add up to offer discounts both from a profit and customer perspective? Ask yourself this – are your customers loyal or are they just hunting for the next deal? As a merchant, are you wanting more customers or have excess capacity you want to utilise? Bartercard suggest you download their eBook Eight ways to attract new customers which shows you how you can implement new techniques to increase your market share, gain competitive advantage and achieve financial success, so for more information on increasing sales, increasing profits and increased profits please go to www.bartercard.co.nz .

Bartercard Discuss the New AML Changes That Came Into Effect on 1 July 2018

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As Bartercard explain, legislation is constantly changing, to keep up with the fast paced and ever evolving business world and latest technology advances.  As they say, “You can’t plan for every eventuality, but there are some things you can plan for,” and one of them is the changes that have just occurred to the Anti-Money Laundering (AML) & Counter Financing of Terrorism (CFT) Act, which was first introduced in 2013.

The original act imposed a series of obligations on banks, fund managers, financial advisers, debt collectors, safe deposit box vaults and numerous other entities, and was designed to ensure such businesses and financial instructions were able to detect and report potentially criminal origins or purposes of money.

However, this year, these legislative requirements are being extended to include the legal, real estate, sports betting, and high value goods industries (jewelry, precious metals, precious stones, watches, motor vehicles, boats, art, or antiques where cash payments of $15,000 or more are taken).  It is estimated the impact will more than quadruple the number of businesses in New Zealand required to contend with The AML Legislationrequirements.

Bartercard warn that with a shift from warning to prosecution, it’s imperative businesses understand their obligations in ensuring AML processes and structures are in place ahead of the legislation which has now come into force for their industry.

The Compliance Officer role is perhaps one of the most important aspects of the AML/CFT system, and as Bartercard explain, an employee must be designated to administer and maintain a business’ AML/CFT programme.  It doesn’t have to be a standalone position; however, the role must report to a senior manager of the reporting entity with access to any board of directors or relevant management committee.

The CFT and AML Compliance Officer has a substantial stake in the business to meet legislative requirements with them becoming personally liable for breaches of the Act, the penalties for which can be up to $200,000 per breach.

Monitoring Suspicious Activity in addition to Transaction Reporting to the Police Financial Intelligence Unit is also an important component of the legislation. International wire transfers of $1,000 or more and any physical cash transaction of $10,000 or more must be reported to the Police Financial Intelligence Unit. For high value goods dealers, they will have to file reports on any cash transaction of $15,000 or greater and may file a report on suspicious activity that does not result in a transaction.

For more detailed information on the AML & CFT Act, download Bartercard’s free eBook (https://bit.ly/2tgwXOb).  Formore information on increased sales, increased profits and increasing profits please go to www.bartercard.co.nz