By Sean Sykes, Account Executive

When the historic Grand Lake Theater in Oakland needed a new paint job, they turned to barter to help with this costly, but much needed expense. The iconic building stands out in the city with its famous rotary contact roof sign (the largest west of the Mississippi), but the exterior paint on the building was chipping, blotchy and no longer reflected the “Movie Palace” image that was intended when it first opened in 1926.

Funding the $70,000 paint job would have taken capital the theater had put off designating to this project. But when S&S Painting, a fellow member of the theater’s business barter network, was willing to do the job on trade a deal was made.

Grand Lake Theater paid S&S Painting for $42,000 of the paint job with BizX dollars acquired through a credit line issued by the barter exchange. BizX then purchased $42,000 worth of Grand Lake Theater prepaid movie and concession vouchers to alleviate the debt. These prepaid vouchers will be sold to other members of the barter exchange’s network of businesses for BizX dollars.  And the barter exchange will do the marketing and promotion necessary to sell the prepaid vouchers to members at no additional cost.

This was a huge business expense that Grand Lake Theater was able to fulfill using barter through a B2B barter network.  The theater saved $42,000 cash on the project and is able to pay for this by selling additional prepaid vouchers to fill empty theater seats to new customers.  This has allowed them to save cash, generate new sales and improve their bottom line.  The improvement to the façade of the historic building should attract new customers as well and put them back on the map as the premier movie facility in Oakland.

S&S Painting, who received BizX dollars for doing the job, was able to generate a new high profile client.  They can now use the trade dollars they have earned to offset budgeted cash expenses or for personal extras. (They are talking about spending their BizX dollars on investment real estate in Mexico.)

Using organized B2B trade through a business barter network such as BizXchange creates win-win-win situations.  Like the examples of the theater and painting company above, members of a business-to-business barter exchange are able to increase their sales and save cash, something every business needs.