
When you use the Canadian Barter System to purchase products or services, the reverse is typically also expected. Other members will become your customers, using the barter system to pay for their purchases with you. This increases your purchasing power.
Your cost on a sale made through the Canadian Barter System is primarily the cost of goods sold; fixed and overhead costs are already accommodated by your regular business, and our membership fees are a small percent taken on the sale price. Because of how our service provides you with a clientele that you wouldn't otherwise have, every sale made through the barter system increases your purchasing power by letting you purchase products or services in exchange for your cost of goods sold.
Let's assume that a restaurant has a profit margin of ten percent (10%).
If this restaurant needed a thousand dollars worth of products and services (i.e. printing, TV repair, electrical work, etc.), the restaurant would have to generate ten thousand dollars ($10,000.00) in sales in order to purchase the products and services required. As a member with the Canadian Barter System, this same restaurant would need only one thousand dollars ($1,000.00) in sales in order to purchase one thousand dollars ($1,000.00) worth of products and services.
Let's also assume that through the Canadian Barter System, this restaurant has earned one thousand dollars ($1,000.00) worth of trade.
This means that the restaurant has accepted trade dollars (credit with the barter system) in lieu of cash from members of the barter system who have chosen to dine at the restaurant. The cost to the restaurant of accepting this new business is their cost on the food and wine served and the cost of goods sold. Remember that the restaurant's regular business has already accommodated the overhead or fixed costs of operating the restaurant. If the restaurant's cost of goods sold is equal to an average of thirty-five percent (35%), their cost of accepting this new business is three hundred and fifty dollars ($350.00). Which means that it cost our member only three hundred and fifty dollars ($350.00) to spend a full one thousand dollars ($1,000.00).
"The Staff at CBS are very friendly and helpful and their terms are very simple. I have called many times for information and I have received fast, informative help ASAP! Any questions or concerns are managed promptly and professionally. This concept is not only a great way to advertise your business, but also to connect with other businesses."
- Kildonan Lock Service
Member Since 2007