Marrying two concepts isn’t always a good idea and many times lack the pizzazz that the Chief Marketing Officer would prefer to see. This may not be so with the newest marriage outside of the barter industry.
Western Trade Alliance has taken a leap and married the concept of a daily deal website with barter. Here’s how it works:
Interested businesses sign up and agree to sell deeply discounted vouchers to their business, usually in the 60-90% off range. As those vouchers sell on Bumbledeal, the business is compensated barter close to the face value of the voucher. For example, a pizza place offering a $20 voucher would be compensated $18 in trade for each voucher sold, while Bumbledeal would collect around $8 in cash. Businesses selling vouchers don’t pay any transaction fees on the trade they earn.
When asked what they do with the money, Nate of Western Trade Alliance answered, “We use some of the money to offset the fees we don’t collect, and we use some of it to buy other goods for our Christmas shows, things you don’t normally see in barter exchanges.”
This unlikely marriage is one that has it’s shadow in early barter exchange practices – cash converting. Nate expressed concern at the program’s ability to create deficits in his exchange, as all cash converting programs do, and said the program is contained and only works for specific businesses.