What Can MTA Do For Me?

What can trade do for me? This is a question MTA is frequently asked by potential members, such as you. So, in return we ask you, can your company take on additional new business? If you can answer yes, MTA will assume that you have at least a 5% paid for, but unused productivity (capacity) in your business. The answer to what trade can do for you, is that barter can give you a dramatic impact on your cash profits.

Balance Sheet Before MTA


Before MTA

If you are a typical retailer, your balance sheet should look something like this. For our example, we are using $10,000 only because it is a round figure and can be easily translated into your own circumstances. Most retailers typically have about a 50% cost in the merchandise they sell; thus, in our example that would be $5,000. In addition, retailers typically have an overhead expense of 30-50% leaving a profit of 0-20%. In our example, we are going to use the average of a 40% inventory expense. The overhead and inventory expense subtracted from gross sales will leave a current net profit, after expenses of $1,000.

With MTA

  • Metro Trading Association's objective is to increase your sales by 5% (5% of $10,000 is 500 in new barter sales) which of course increases sales to $10,500.
  • Once MTA has increased sales by 500, we will naturally increase inventory expense by ½ of that or $250. So, after a 5% increase in sales, inventory expenses are $5,250.
  • Next comes overhead expense. Instead of paying overhead with $4,000 cash, the MTA member has the privilege of paying with $3500 cash and 500 in trade credits. Overhead expense stays static at $4,000 because we are using paid for, but as of yet, unused productivity. The exception to this is the $50 marketing fee to obtain the new sales from MTA. We all know there is always a cost to getting new customers, but what is exceptional about the MTA marketing fee is that you pay it out of the new profit we bring you.
  • When you subtract the $5,250 and $4,050 from $10,500, it shows that bottom line profits have increased from $1,000 to $1,200 or a 20% increase.

Balance Sheet With MTA


So what can trade do for you? The answer is up to you. Does a 20% increase in cash profits let you expand your business, educate your children, allow you to travel, provide for your retirement, or keep you from going out of business? It has meant this and more to MTA clients. In total the businesses affiliated with the association have enjoyed a total of a quarter billion in new sales.