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Barter Example 1 (Printer)

A printer has spare capacity. Whilst his presses are sitting idle he is losing money.

Over a couple of months he supplies printing services to several barter members, as outlined below. He decides to charge a ratio of 75% barter and 25% cash.

EBB
Service Price Barter Cash
Design & Print £500.00 £375.00 £125.00
More Leaflets £760.00 £570.00 £190.00
Letterheads £505.00 £378.75 £126.25
More Letterheads £425.00 £318.75 £106.25
Brochure £2490.00 £1867.50 £622.50
Totals £3510.00 £1170.00

The printer has completed five jobs and has earned a total of £1,170.00 in cash.

There are 3,510 Contra Cash units available in his barter account which he uses to purchase goods and services from other barter members. He spends some of his Contra Cash on local restaurants, dining his key clients, paying for the meals using Contra Cash. He and his family take a short holiday, using Contra Cash to purchase hotel accommodation and meals. Finally he purchases new office furniture and a new computer.

By bartering he has gained additional work and a new customer he otherwise may not have received therefore increasing his profits.

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