Case Studies
The following Metro Trading Association members have enjoyed the benefits of barter. They have benefited from new business, improved cash flows, and built relationships with fellow business owners. Here is how barter has been a wonderful part of their business plan.
New Ching Tao
Involved with trade for the past 21 years, Charles Liu (and his restaurant New Ching Tao) has formed a strong and lasting relationship with Metro Trading Association.
“We joined Metro Trading Association in 1983,” remarks Liu. “I was approached by a field service representative, based on a referral given by another member, and upon hearing the benefits of the association I joined.”
The restaurant had only been in operation for two years at that point, having opened its doors in 1981. A family-run business, Liu saw Metro Trading Association as an opportunity. The increase in income could help the business and conserve the cash that was needed to run a restaurant, as well as increase the number of customers walking through the door to have a meal at New Ching Tao.
It worked. Barter became an advantage for Liu. It is additional business that he would not have seen if he had not taken the option to become a member of Metro Trading Association. “My percentage of gross sales in barter sales is about 3%,” says Liu.
“I am sure in addition to barter sales, New Ching Tao has picked up cash sales. Barter increases your business’s traffic, provided that you have good food. My theory is that if you have good food and good service, word travels fast through barter, but of course it can have the reverse effect as well, if you do not have good food or service.”
Liu adds, “And I have no problems spending barter money. For the business I buy coffee and carpet cleaning on trade. Personally, I have done a great deal of home improvement on trade; sprinkler system, deck, bought trees, and I am currently doing lawn fertilizing on trade. I also eat out a lot on trade. I go to Haab’s quite a bit.”
“Though I’d have to say my most unique purchase is the eight trees I bought using my trade dollars,” says Liu. “They cost almost $1,000 a piece. It is not something I would have done using cash, but it has increased the property value of my house. It is a barter purchase that will transcribe into cash when I sell my house.”
“There is a lot that you can do on trade,” says Liu. “Though, it takes a real diligence to use barter. You have to use barter wisely and very prudently, like you would with your cash. It is not something that you got because you are better then someone else, you have to work hard to earn the money, and you should find the right things to spend on.”
“Barter is especially important to my business in a down economy. It is no good if your restaurant is empty. Trade customers help increase traffic and give you a presence. When you have extra presence in your restaurant, it gives your cash customers the feeling that you are doing good business. It is a win-win situation.”
“Trade really is a great thing,” remarks Liu. “I got it figured out. As long as you can take the time to be diligent with your trade, it can help you to increase business and add to the success of your restaurant. And Metro Trading Association is there for you. They are personal, and committed to helping you not only promote your business, but they help you find the things you need.”
New Ching Tao and Charles Liu have enjoyed many accolades throughout the years, in addition to their association with barter. In 1984, the restaurant was voted favorite restaurant in the metro-Detroit area by a WXYZ TV audience. Then in 1995, Liu founded and was first-term president for the Chinese American Restaurant Council of Michigan.
“I encourage my peers to become a part of Metro Trading Association. It is worth trying. The essence of a restaurant is to service customers. Barter provides word of mouth and increases traffic. Be adventurous, and willing to go the extra mile to increase business,” says Liu.
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Cloverleaf Bar & Restaurant
The Cloverleaf Bar and Restaurant in Eastpointe has grown from a small neighborhood bar to the eastside institution it is today due to hard work and family devotion. They also incorporated trade as part of their business plan in 1992, a move that proved to be very beneficial in the growth of the restaurant that is located on Gratiot.
Thriving on the East Side since 1953, Cloverleaf carries the reputation for some of the best dishes in town, including pizza and other Italian specialties. That reputation nearly came to an abrupt end nine years ago when a fire spread through the building and nearly destroyed it.
“Metro Trading Association was truly the best after the fire,” says co-owner Marie Guerra. “They really helped out when we needed them the most. There I was in tears, trying to rebuild, cash flow nearly nothing, and fighting with insurance companies; and a Metro Trading Association representative walked through my door and gave me a line of credit. I didn’t even have to ask, they just offered to help my family and I rebuild.”
“It took nearly a year to rebuild,” adds Guerra. “But through the help of contractors, plumbers and electricians we were able to hire on trade, we were able to reopen our doors to the public.”
“It is this type of service and help that Metro Trading Association offered to me and my family when we were in need, that will keep me loyal to the association,” says Guerra. “They also uphold the rules of fair trading. Their rules create fairness and equality with all members.”
“I fear that is why many other restaurants choose not to become involved with barter. They feel that they will not get their fair trade value,” Guerra says. “But Metro Trading Association backs up its members. They want all members to enjoy the benefits of trade, equally and fairly.”
“Barter really is a great way to increase your business, and increase your sales,” remarks Guerra. “We are dealing with a very reputable barter firm that is very fair. They are not afraid to confront members on the issue of fair pricing. I know every restaurant would like to increase their business and sales. Every barter member in the association is a potential customer!”
“These barter customers’ credits then convert into purchases I can make for the business, ” remarks Guerra. “I have used trade to hire decorating firms, to do sign repairs, to advertise for cash customers, hire plumbers, do booth repairs, buy time cards, and purchase computer supplies and internet dial-up service. I have had an artist come in and paint a mural on a wall in the restaurant. The list could go on, but I feel that barter has saved me a great deal of cash. By far, the building and equipment repair that I can get on trade has saved me a great deal.”
“I have also used barter on purchases for home and family,” adds Guerra. “I have bought gift baskets, gone out to dinner, bought tanning packages, tickets for ‘N Sync, and dog grooming.”
“By far, the most unique trade opportunity I have is working with The Display Group during Cruzin’ Gratiot,” explains Guerra. “In 2002, they put in a drive-in movie theater in the parking lot. It really was a great atmosphere. They have also helped us throw an Academy Awards party and decorate for the holiday season. The Display Group’s work is really great and helps draw attention to our restaurant, and we can do it all without spending cash.”
“Barter truly is beneficial and helpful for my business,” says Guerra. “My advice to new members, after successfully trading for more then ten years, is to stay involved and keep in touch with your trade broker. It is good not only to help promote your business, but also to help you spend your trade dollars. They can help direct and lead you in the right direction.”
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Keep It Under Wraps
A young woman, just starting out in business 26 years ago, Keep It Under Wraps owner Mary Koltys was looking for an edge in business. She found it in barter, and in particular with Metro Trading Association.
“I was introduced to barter through one of my cash customers back in 1979,” said Koltys. “Once they explained the benefits of barter, I thought it was a great concept. Here I was a young business, and eager to grow. It seemed like a new avenue to try, and it worked, and still does.”
Originally selling Merle Norman cosmetics, Koltys left and opened Keep It Under Wraps five years ago. She took along her cash and trade clientele, and continued to sell beauty products, gift baskets, and provide personal beauty services.
“In my changes and growth, I have found trade to be a really positive business tool for me,” remarked Koltys. “It fills the empty seats, brings clientele in from areas you wouldn’t typically draw from, and I’ve expanded my cash business through referrals given by trade customers. It really has been a great additional advertising venue for me these past five years on my own, and the time before when I was with Merle Norman.”
“I do about 20% of my annual sales in barter,” said Koltys. “I then in turn take this income and am able to make purchases for my business and myself on trade, keeping the cash in my pocket.”
“The business expenses that have been taken care of on trade include printing, as well as purchasing baskets, candles and different types of accessories for the gift baskets that I create,” said Koltys. “I can then take many of these trade purchases and turn around and sell them for cash.”
“Personally, I have used a great deal of trade on the dentist, vet visits, accountants, landscaping, pet supplies and vacations,” said Koltys. “I love that I can use my trade on items like this, and save my cash for other expenses.”
“Over the years the most unique things I’ve been involved in with barter include making sales to Clintondale schools. They would purchase manicure supplies for courses offered at their school,” said Koltys. “As for purchases I’ve made, accommodations in Florida and another to Las Vegas really stand out in my mind. It was a real cash saver.”
“I’d really encourage others to get involved in barter, it is great for the young and growing businesses,” remarked Koltys. “Barter can provide you with all types of advertising and promotion. It is a whole new networking experience.”
“And I find that MTA is not like other trading institutions” added Koltys. “Mr. Mercier brings barter into a personal realm. I find that MTA brokers are concerned about servicing you, both in bringing you business as well as in helping spend your trade. It really makes for a win-win situation. Also, MTA is one of the few that has a field service representative come in and visit me at my place of business. It is really nice to have a person come in and tell me about the new restaurants, dry cleaners and more in my area. That extra effort really makes a difference.”
“My advice to those just starting out in trade, a barter association works like a small town,” said Koltys. “Be honest, fair and build a good reputation, if you take the time to do these three things, you get happy, smiling clients, which in turn they refer you on to friends and family, which is cash business.”
“And now, with the economy as slow as it is, I really do find barter to be an edge,” remarked Koltys. “It allows me to keep my cash in the bank, and still purchase the items I need, as well as it brings customers through the door.”
“In addition to business I take in during the year, I often exhibit at the MTA trade show,” said Koltys. “It is a great night. It is a nice way to meet people, a great way to move excess inventory in one night, and in addition revisit friends that we’ve met throughout the year. You also get to network with new businesses and see what others have to offer.”
If you are interested in learning more about the gift baskets and favors Koltys can do on trade, or are looking to book an appointment for a manicure, pedicure or body wrap, call her at 248/423-9331. Keep It Under Wraps is located in Lathrup Village.
“Lastly, I just want to reiterate that barter thus far has been a great experience,” remarked Koltys. “MTA’s staff has done their best to help me, promote me, and overall help my company do more business.”
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Belland Photography
A charter member of Metro Trading Association, Larry Belland has been with the association since Michael Mercier knocked on his door in February of 1978. A small business owner, Belland and his photography studio, Belland Photography have survived and thrived in its 30 years of business.
Larry Belland started his business out of his home, and in 1973, he opened the doors of a small studio in downtown Berkley. “As many small business owners can relate to, I found having a studio setting more professional, and by offering a storefront I gave my customers an open door policy,” said Belland. “No longer did they have to call for appointments, plus I got the walk-in traffic as well.”
The business grew in those five years but when offered the chance to join Metro Trading Association in 1978, Belland took the opportunity and saw it as a great business tool. “I saw MTA as a chance to bring business through my door that would never have heard of me otherwise, it worked,” he said. “Barter allowed me to deal with business people, and barter has worked quite well for Belland Photography. MTA has been a wonderful network for me, I know certain people strictly because we are members in barter.”
“We got the business too,” said Belland, “we sold wedding packages, photographed families, took photos for businesses. In addition we got the referrals, building up our cash and trade business, and in essence kept us busy. In fact, often in my slowest months, I will get a trade customer, which helps generate income and keep my employees and myself busy.”
“I’d say over the years Belland Photography regularly does more then 10% of its annual gross sales in barter,” said Belland. “That is because most of the items sold, are packages for weddings, which can range from $1500 to $2500 or more depending on needs.”
“However, in turn, the referrals I get from trade are great,” added Belland. “So often we get referred to friends and family members of barter customers. In fact, thanks to a barter connection I was referred to and did the photos for Aretha Franklin’s son’s wedding.”
“While I take in the business, I also spend the trade,” said Belland, “it is a great asset and has allowed me to make purchases I would not have otherwise been able to afford. Truly, anyone that says they can’t use barter, they are out of their mind.”
“I used barter dollars to assist in paying for my wedding, it helped pay for the flowers, catering, and a Wind Jammer honeymoon cruise,” said Belland. “And once the children came along, barter allowed me to take my family on great vacations, ones where we could stay in suites and condos for the week. This certainly allowed me to live at a higher standard then what we would have been able to afford.”
“For my home, which was built in 1924,” added Belland, “I have used barter for things like a new roof, new sidewalks and porch, new addition to the home, having carpet cleaned regularly, having plumbing and heating work done, and the lawn fertilized. I also bought a hot tub 15 years ago on trade, and when it broke down recently, was able to have all the repair work done by Universal Electric Motor Services.”
“For the business, trade has been a wonderful addition,” remarked Belland. “As a business owner with limited insurance, trade has been used for dental, and optical needs. I also have done a large amount of car repairs on trade, an especially great thing for Belland Photography because we travel around a great deal. I also entertain clients, Sweet Lorraines is a favorite, and most recently we took 18 clients out this past holiday season, we shuttled them around using an Entertainment Express limousine, and later stopped for dinner at Mr. Mikes downtown.”
“And while we can’t get film on trade, we have found so many other avenues to help the business, aside from the ones already mentioned, we have had printing done, and also do a great deal of advertising on trade that generates cash business,” said Belland. “In addition, a real important trade relationship that has evolved for me is doing bridal shows with Brides-To-Be. That is a barter relationship that I established 20 years ago. We do their bridal shows each year, as well as being listed on their mailing lists and in their magazines.”
“After 25 years of trading, it is always great to see relationships grow and come full circle,” said Belland. “The barter network is really the most beneficial and important thing about trade. As an example I’ve been going to Meribar Pet Supplies for many years, purchasing pet food, tropical fish, and more. Then just this past summer I did their daughter’s photos for her wedding.”
“I truly do encourage others to get involved in barter because it brings customers and business relationships to you that would not otherwise walk through your door. It is like a private club,” said Belland. “Also, the barter network is a great marketing tool. Trade is a great advertisement for you, based on the word-of-mouth generated for your goods or services; and while you do need to pay a small commission, remember it is considerably less then what you would have to pay to TV, radio or newspaper advertisements. Trade can help you grow!”
“I have certainly gained cash business because of my barter connection,” remarked Belland. “I have gotten new customers because of word-of-mouth referrals and also I have barter members’ families buying photos from weddings and other special events that also generates a cash income.”
“I just want to reiterate what a joy it has been to work with MTA through the years, because it is such a tight network,” said Belland. “I know the people I am spending with, and have formed lasting relationships that have helped me and my business.”
If you are interested in learning more about Belland Photography, visit their website at www.bellandphoto.com. While they do special events and weddings, they are more then happy to help provide you with portraits of families, children, and babies. They also do photo restoration on trade. To make an appointment, call Belland at 248/541-2345 or visit their studio at 3013 W. 12 Mile Rd. in downtown Berkley.
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