01 About TIENS
The bartering section of Tiens Group, which is guided by the keynote strategy “one-body & multiple wings, three-network amalgamation, and multiple-network interaction”, implements free exchanges of goods and services regardless of the limitation of time and space. It reaches the goals by means of the supports from the Group’s direct selling networks around the world, the state-of-the-art technologies such as the big data AI, and the Group’s internet trading platform.
Barter Investment Story
MacDonald had got a delivery job and sent pizza and hamburgers to fast food companies, he also did some part-time jobs in his spare time. His various working experiences bred a breadth of vision and understanding to him even though he was only 26 years old. Occasionally, MacDonald promoted the sales of products at exhibitions, and the earning was good enough to cover the rent of the house ($300 per month) that he shared with his friends. Anyhow, there was still a thing in his mind: a house of his own, which according to his current economic ability, impractical at all.
Lucky was MacDonald had his way: he was a skillful seller. He made an advertisement for his huge red paperclip -- a rare artwork -- on the local goods-exchange website for an exchange of some larger and better stuff. At that time, he was just expecting something favourite , whereas a house was only a dream.
Soon enough, two ladies from British Columbia made a deal with him: they received the red paperclip by offering him a fish-shape pen. Later the same day, MacDonald attended a ball in Seattle and dropped in on Artist Anne Robins on his way back home. Anne also showed interest in that website and once chatted with MacDonald on the internet, and he brought that pen with him to Anne’s. Out of his expectation, they made a deal successfully! Then MacDonald left with a porcelain door handle with a painted smiling face on it.
And the next person he made exchange with was a 35-year-old man named Sean Sparks from Alexandria, Virginia. Sparks had two grills on hand while normally there was no need to have both of them. Then Sparks thought MacDonald’s porcelain handle was a good choice for his broken coffee maker’s handle, so he offered MacDonald a Coleman grill -- that was how another win-win exchange went. MacDonald started to realize the advantage of the barter transaction: he could receive a larger stuff with higher value from every exchange.
MacDonald decided to continue such type of transaction: an officer at Marine Corps Air Force Base in Pendleton, California offered a generator for MacDonald’s Coleman grill, and then an aged Budweiser barrel was received through that generator, after that a broadcaster from Montreal Canada provided him an old snowmobile for this Budweiser barrel.
A snowmobile magazine from Canada proposed a high-priced travel while MacDonald transferred such opportunity to a manager from Quebec, and got a Talon roadster produced in 1995 in exchange.
Instantly the roadster was taken by a musician who provided a contract for recording an album. MacDonald shifted this opportunity to a broken singer in Phoenix who expressed the appreciation by sending him a duplex apartment in return.
MacDonald had got a villa from a paperclip via a variety of exchanges within a year, whereas the values in between was a gap. We cannot help being amazed by the power of bartering!
Barter Sales Story
A man who did Korean soft drink business could not find a consumption market for his products, and the expiration dates of the drinks were due within 6 months. Then the man was introduced to the owner of a mushroom noodles restaurant. The restaurant had been run for half a year while the profit kept low. After mutual negotiation and design, the restaurant owner made a sort of consumer card which represented a type of mushroom noodles. Namely, the unit price of this noodles was￥10 per bowl, then the restaurant asked for 150,000 bottles of Korean soft drinks while as an exchange, it provided the beverage seller consumer cards of 100,000 bowls of mushroom noodles. There were no shelf lives for the noodles consumer cards nor immediate cost, by contrast, 150,000 bottles of beverage had been stored in the restaurant.
The restaurant made its sales promotion immediately: customers could have one soft drink for free as long as they ordered a dish besides the noodles they already had, and one box of Korean soft drinks would be offered as reward when their bills were over￥150.
The beverage seller made a 70% discount for the noodles consumer cards and promoted the sale in the area within 1km of the restaurant, and he sold the cards to the employees from companies nearby. The noodles was￥10 per bowl and the employees ate occasionally, but when the price declined to￥7, there came a number of buyers, many of whom even kept the contact number for further consumption. As a result, 100,000 bowls of mushroom noodles were sold out within three months.
Many who regarded the “buy one dish get one soft drink free” policy a real bargain had became regular customers in the restaurant. The number of customers to the restaurant had increased, the amount of consumption had arisen rapidly and the profit doubled in the month.
The Korean soft drinks did not expire, on the contrary, its market had been opened: consumers liked this type of beverage, so the restaurant continued to order after selling out of the first 100,000 bowls of mushroom noodles and became a dealer of the beverage. This type of beverage started to have its market, and at the same time, customers became beneficiaries-- they had got￥3 as discount for each bowl of noodles, and could have free drinks when they ordered dishes in the restaurant.
Barter Purchase Story
Before the Spring Festival in 2009, employees from Zhejiang Hailishi Electric Appliances Co., LTD. were delighted to bring their benefits home from the company: besides fruits, they received boxes of Huiyuan fruit juice. Hailishi did not pay for the juice as the company’s benefits, on the contrary, such benefits had increased the company’s performance. One year ago, Manager Yuan from Haishili was proposed to “exchange” their freezers for fruit juice when making business negotiation with Huiyuan Juice, and pleased to accept this mutual beneficial idea: the juice could be taken as promotion gifts as well as company’s benefits to employees, while outstanding juice dealers could be rewarded with freezers, or the freezers could be used as display cabinets. In this case, mutual parties would not only save the cost, but also increase their sales amount.
Since the second half of last year, economic crisis had brought great influence to both companies, hence the advantages of bartering and exchanging had been increasingly obvious. Manager Yuan made a calculation: there were four exchanges between Haishili and Huiyuan last year, and the amount for each exchange was approximately 5 million RMB, which had increased 20 million RMB in sales amount for both parts. That was to say, both companies had saved 6 million RMB in cash from the aspects of their advertising promotion plus purchase cost which consisted of 30% of their sales amount. Apart from these visible profits, the companies had deepened their cooperation and mutual trust in between.