Barter and Contract Payment Options

As with all media we are certainly interested in barter and contra options in lieu of cash payments.  However, some stipulations exist in order to take advantage of the barter payment options

Retail verus Retail

These promotions are being brought to you at wholesale pricing due to volume discounts and various incentives worked into the development of the package.  These are cash prices.

Our terms for taking barter payments is full retail value bartered against full retail value.  In the case of newspapers that is the casual line rate in terms of dollars bartered against the retail market value of the certificates involved.

The amount of barter is also negotiable.  We will only be able to barter up to a maximum of 50% of the certificates being sold.  There are substantial cash costs associated with the development of these certificate programs and although newspaper or media advertising is always valuable, it simply will not pay the bills. 

Carrier Fuel Program Barter Payment Example:

500 X $300 fuel certificates.  The total cash cost would be $9,500.00  The certificate gross retail value is $150,000.00 .

We would only be willing to barter 50% or 250 certificates.  Valued at the retail price of $75,000 on account with the newspaper against advertising calculated at the casual retail line rate. Fully transferrable at the retail rate.

Payments would be:

Cash       $4,750.00
Contra     $75,000.00
Plus GST on the full amount.

To make a direct comparison at costs.  The ratio of retail value to average impressions cost of major metro dailies is 20:1.  In this scenario $75,000 / 20 = a cash cost of $3750.00, which is a net savings of $1000 in cash and a $3750 charge in contra line item costs.  Not real cash payments.

If you would like to take advantage of this barter option do not hesitate to ask, there is roughly a 10% savings on the cash costs of the project by using barter but a larger advertising credit balance is created.