System advantages and operating principles

How does B2B.RU work?

The system works under the open barter principle, which combines the virtues of barter and conventional trade. The registered companies “sell” to and “buy” from each other goods and services for the internal currency called B2B Money (universal barter trade unit) instead of real money. More detailed information can be obtained from the Processing section.


How can B2B.RU help my company?

Below are the three key benefits that B2B.RU members get after signing up with the system:

•    Attract new customers and load unemployed capacities or sell surplus goods;

•    Reduce the costs thus increasing the enterprise’s profitability;

•    Save “real” money by paying with B2B Money instead of deficient rubles and dollars.

On the one hand, B2B.RU allows you to significantly reduce your current outlays. On the other, it will be your new alternative distribution channel, which will allow you gaining a large number of new customers. It is worth noting that each new customer that you service, after deducting all the basic administrative costs (salaries, rental, communications, etc.), brings you additional profit. Provisioning of goods and services even to a small number of new customers, after deduction of the basic expenses, may significantly increase your net profit. 


 

What can I sell?

B2B.RU allows you to sell almost everything, any goods and services. The most productive is to sell vacant capacities of your business (e.g., vacant restaurant tables, hotel rooms, advertising time on air, idle equipment and personnel, etc.) and surplus goods. A tentative variety of goods and services provisioned by the system is shown in our  presentation. The full list of system members and their offers is available after signing up with B2B.RU.

 


Who can I buy from and sell to? 

You can enter trade relations with any member. In addition, if your prospective party is not signed up with us, you can invite him or her to the system and make a deal right after the registration. 


Can natural persons be members of B2B.RU?

B2B.RU is primarily oriented to legal entities, however we allow natural persons to participate, too.   


My business is almost no-cost, do I need this system in such a case?

Of course! For many customers B2B.RU is not only a means of reducing the costs, but also an alternative distribution channel. Remember, each new customer brings additional profit!   


B2B.RU appears to be another pyramid to me, the goal of which is to collect money and then fade away

Open barter is a business model that has been working in the West for more than two decades and has gained multi-billion revenues. We have spent a whole lot of money to buy and develop hardware and software, to adapt the system for the Russian legislation, to hire a staff of highly professional specialists, to find and record several hundreds of customers. Do you think we did all this just to get the membership fee?


What companies are engaged in barter in general?

Some stats: in Russia there are today more than a million of companies participating in barter trading, most of which are small and medium businesses. This number will probably grow because of the crisis trends. Globally, barter is also exceptionally popular; more than a thousand of barter houses and systems have been successfully developing. In spite of the fact that main users of such systems are small and medium businesses, large companies are also actively engaged in non-cash operations – about 400 of the world’s 500 biggest companies participate in barter one way or another. 14922


Who defines the price at which a seller sells his goods?

The interaction between members goes just like in real economy. It is assumed that members sell their goods and services at the same price as they would declare if selling for real money. Gross violation of this rule may lead to a member being expelled from the system.


I heard that barter is handy only for selling and buying services, but not goods. Is it true? 

No it is not. Open barter is handy for selling and buying both services and goods. If we speak about selling, open barter is especially efficient for realization of underloaded service provisioning personnel and surplus goods or high-margin goods.


How to assess the profitability of a barter deal? 

You have to establish, how much real money you actually invest in the cost of your barter offer. If for the price of a merchandise/service its cost is 50 kopecks for a ruble (i.e. 50%), then the real price of the 10 000 B2B Money received from the deal (note: 1 BM = 1 ruble) will be 5 000 real rubles. Then you should assess, what you can purchase in the system for the obtained 10 000 B2B Money, having spent 5 000 real rubles. By speculating in such a way, you can easily estimate the profitability of each barter deal. It must be noted, that if you run a service-provisioning business, the real cost of barter for you will most probably amount to mere staff costs and office/equipment rental.


How to calculate the rate of return for a barter transaction? 

Use the following formula:

B$ x (GM – C) x (1 – T)


Where:


• B$ - is the expected amount of B2B Money you will gain and spend through a barter deal on B2B.RU (in dollar equivalent). 

• GM - is the gross profit rate of your company (gross profit divided by sales). 

• C - is the commission fee of B2B.RU, which is charged for sale and purchase of goods and services.  

• T – is the tax rate for your company.  

For instance:

• B$ = 20 000 

• GM = 70% 

• C = 12%  

• T = 34% 

Thus, the expected additional cash for this business is:  20 000 x (0.7 – 0.1) x (1 – 0.34) = $7 920  


What if the price of a barter deal is higher than that of a deal in real money outside the system? What is better: to pay a higher price for a barter deal or a discounted price in real money?

Remember that when you make purchases through a barter deal, you use your goods and services and not monetary funds. It is often more advantageous to pay more in a barter deal than to purchase the same product at a slightly lower price for rubles. System members know this difference and use it to their benefit. On the other hand, if someone overprices its goods or services over the reasonable limit, you have the right to withdraw from having business with this party. At that you should contact our specialists. We will pick another business partner for you and analyze the good faith of the member who has unreasonably overpriced his goods or services. We emphasize that one of the key tasks of the administrative staff of B2B.RU is to protect the interests of its members. The system traces all deals made and ensures that all transactions are carried out in compliance with market rules. The administration of the system is entitled to expel members who make gross violations of the terms of trade.