Bartering gets more and more popular
February 8th, 2010
February 8th, 2010
On: http://tinyurl.com/yk22wd3
Bartering, the old way of trading, is on the way to come back. Both, Individuals and companies, are using it more and more to develop their business or just for fun. Cashless trading is becoming popular all over the world. Many companies use the possibilities of the World Wide Web.
There are nearly 60 barter companies in Turkey, 40 of which opened within the last two years, according to Mustafa Demir, director-general of the Istanbul Barter Exchange.
The interest in bartering, in which goods or services are directly exchanged for other goods, services and real estate without a common unit of exchange, has increased during the recent economic crisis, Demir said.
Many checks and other financial transactions bounced during the crisis, leaving many companies in a difficult situation, he said, adding that many firms opted for the barter option because of these issues.
The exchange’s aim is to boost the sales volume and profitability of its members, said Demir. “Banks offer checkbooks to people that do not have sufficient deposits or guarantees. Many of those checks then bounce. In this, banks must pay the full check amount instead of just a percentage.”
Speaking of the choice to pursue the barter system, he said, “This new system not only prevents a company from making purchases for which it does not have enough resources, it prevents it from even making an offer.”
There is a “guarantor” for each member of the exchange, Demir said. Those guarantors are also obligated to conduct necessary publicity and marketing studies to sell its member’s products, he said. “As a barter company, we act like a bank. The difference is we also act as full guarantors,” said Demir. Even if the buyer goes bankrupt, the seller receives what is owed from the system via this barter system, according to Demir.
There are two locomotive sectors of the barter system in Turkey, said Demir; one is the construction industry and the other is advertising.
Companies that are seeking advertisement prefer to offer their products in exchange for the coverage instead of paying with money, he said. For example, construction companies can get their advertisements aired on 10 to 20 different television stations by allocating one apartment to the advertiser.
Bartering for Business & Wedding Planning
February 4th, 2010
February 4th, 2010
Every good business relationship is filled with some sort of give and take, a bartering of sorts if you will. I’ll provide knowledge and expertise in exchange for something else. Its natural that in business, people help people or make a barter in exchange for something. So why aren’t more brides and grooms bartering in their wedding planning?
In the past few years, every magazine and wedding blog has drilled into newly engaged couples that they should negotiate and they should ask for discounts. While I agree that negotiating is a great strategy – straight up asking for a discount isn’t. Why? What does your vendor get in return from giving you a discount? And, why should you get a discount to begin with? Because you’re engaged and planning a wedding? Vendors are providing their skill, knowledge, expertise and passion with you in their services … you wouldn’t walk into a shoe store and just demand a discount simply because you need a pair of shoes. All of the vendors that I work with and know aren’t out to screw the engaged. I hear it time and time again at consultations “don’t tell x,y and z vendor that its a wedding – they’ll jack the prices up!” … um, usually not so much. Vendors know their market, know what things cost and like every other company that exists, needs to make a little extra in order to actually stay in business.
If you really fall in love with a vendor but know you can’t afford their services, sit down with them and be open and honest. Flattery does help. Offering a barter or exchange may work in your favor. Do you have amazing writing skills? Offer to re-write all their marketing material. Do you have the time to come in and cut flowers for them on the weekends? Let them know. Be offering something of yourself, you’re much more likely to get a vendor whose willing to give you a break on the cost of your proposal, or at least work with you to bring the cost down. Use your expertise to trade with the vendor in an area that you feel they can benefit. In everyday life, we make exchanges with people based on our needs and their needs – this should apply to wedding planning rather than just demanding a discount.
Figure out what you have that a vendor needs and then exploit it! Bartering is a years old tradition and in many cultures is the way of life – time to employ it into your wedding planning process.
And bartering is in addition a lot of fun! You will find goods you have never expected…
Barter economy – pub history
February 2nd, 2010
February 2nd, 2010
My wife’s cleaning services for a free pint? That’s the strangest offer licensees at Lincolnshire pub have received since introducing a bartering system.
Licensees Matthew Walsh and David Hurst introduced the drinks for goods and services deal at the Marston’s leased Bugle Horn in Bassingham, Lincolnshire over a year ago and have reported great results.
“When we came to the pub there were problems with the boiler,” said Walsh.
“We just mentioned it to a customer one day who got his friend to have a look. He fixed it for free when it would have cost about £100, so we repaid him with 10 gin and tonics. It’s just taken off from there.”
Since then, the licensees ring the bell during busy times and ask if anyone can help with plumbing or electrical problems.
“There is always someone who can either help or knows someone else,” he said.
Community help
Local farmers barter with their surplus stock. “The strangest one we’ve ever had was a man offering his wife as a cleaner in return for drinks,” said Walsh. “We think it was a joke.”
Walsh and Hurst also write messages on the pub blackboard or put flyers in the windows advertising their needs and rewards.
Through this method, a local agreed to paint the restaurant with provided paint in return for a month of free drinks.
Locals also donated trees and shrubs to renovate the pub’s garden.
“No one takes advantage. In fact, people often won’t accept payment at all.”
Competition
Walsh said the locals have been known to compete amongst themselves to be the first to help the pub. “It was only about 10 minutes after the bad weather hit last month that someone turned up with a bag of salt.”
During hunting season, locals will also exchange pheasants for pints.
“At cost price, two drinks will be around £2.20 but four pheasants make eight portions of casserole, which we sell at £8 each,” explains Walsh. “We make a profit so it is a win-win situation.”
How bartering works
January 29th, 2010
January 29th, 2010
on: http://tinyurl.com/yz9umje
Let’s say you’re a farmer in the ancient Levant, and you want meat. The guy living just down the river is a hunter, and he wants vegetables. What do you do? You barter! You bring your vegetables, your neighbor brings his meat. You two come to an agreement about how many vegetables are worth how much meat. If meat is plentiful but vegetables are not, you’ll probably walk away with “more” than he will. But if meat is rare, he can ask for more vegetables. Once you’re both satisfied, you head home.
One day, you show up at his door with vegetables. However, it turns out he’s got plenty and doesn’t want any. You still want some delicious meat. He tells you that he could use new tips for his arrows. The local weaponmaker wants vegetables. You see a solution. You trade your vegetables to the weaponmaker for arrowheads. You then trade those arrowheads for meat. Everyone’s happy.
Of course, what happens if the weaponmaker wants meat? You’re left out of the trade. This isn’t unfair. Your goods aren’t worth anything to those two at the moment. So you either live off your vegetables, change from agriculture to another lifestyle, or find someone else to trade with.
Fortunately, vegetables, meat, and basic technology rarely become unwanted. So at many, many points through human history (even today! not just in ancient times!) bartering works.
How can you decide how much something is worth? It depends on the desires of the person involved in the trade.
The best you can do – bartering!
January 26th, 2010
January 21, 2010
On: http://bit.ly/4I
If the doomsdayers have it right, we’ll be growing our own food and bartering goods in the foreseeable future. But what’s so bad about that?
In a recent post, I wished for a place where people could swap home accessories. Kashless.org does this, but also adds incentive after incentive.
The website provides a place for people to give away and find free goods — everything from firewood to a piano. You can search for a specific item by neighborhood or by category, and if it’s not there, the site will email you when it’s offered based on how far you’ve indicated you’re willing to travel.
Just yesterday, I found a Samsung 20-inch TV with a stand, a metal desk, a washing machine, two Polaroid cameras, and a food processor. Some listings have photos (which are very helpful), but most don’t yet.
But here’s how it’s different from Freecycle and Craigslist: In return for your exchange on the site, you can earn gift cards to more than 1,500 stores like Target, Sears, local grocery chains, and the Purveyor of All Goods, Amazon.
And for those who can afford it, you can also choose to donate your rewards to one of many charities (you’ll get a tax receipt for donating online).
The site tries to find solutions for any problems that might come up. You can telegraph your giveaway on Freecycle, Facebook, Twitter and all your email contacts through one posting on Kashless. If you find something you want, but it’s too far to drive (you can search other cities too), you can buy postage through the site and have it mailed to you. And if you’re already using Craigslist or Freecycle, you can track and search those listings through Kashless.
I predict this site — and those like it that will inevitably pop up — will be extremely popular, especially in progressive, forward-thinking metropolitan areas like ours. I’m signed up and ready to go.
Bartering and a more genuine world
January 26th, 2010
January 22, 2010
On: http://tinyurl.com/ycy9q3a
“Do unto others as you would have done unto you.” The Golden Rule is often repeated, but seems to be rarely followed. That is, until you look closely. We are entering into a network economy, where our online connections are just as important as those offline. Social media and online interactions have brought us together in ways like never before, causing our culture to develop an unwritten rule of reciprocity both on and offline. Call it karma, paying it forward, or returning the favor – it all boils down to reciprocity, and the act of exchanging goods, services, or goodwill with people in your own backyard, and all around the world.
Examples
Kiva – As a prime example of a digital exchange economy, Kiva connects entrepreneurs and lenders from around the world over the Internet. Through Kiva, lenders donate money to help others build their business, but are paid back when the entrepreneurs find success. The cycle continues, over and over, building the perfect example of reciprocity.
Authenticity – In the days of AOL, chat rooms abounded with hate and attacks among users of all ages. Now with social media networks, that feeling of hate has changed to respect, with positive conversations being fostered on public platforms such as blog comments and community forums. We can put a name to a face and interact in a much different way, making these networks more human and enabling individuals to connect on deeper levels. As a result, we’re more likely to treat people with more respect and generosity in the digital space.
Stats
* Reciprocity can be found in basic human connection. For instance, Craigslist has seen an increased use of the bartering section of the classifieds; the number of ad listings has doubled in the past year.
* The number of companies matching charitable donations continues to stay steady despite a tough economic outlook.
* Kiva has a 98 percent success rate for the repayment of loans
Take Aways
Reciprocity is the foundation of social capital. When someone follows you on Twitter, we usually follow them back. When we get a friend request, most people will accept it out of respect, even if the real world connection isn’t there. All the rules we follow in our real world interactions transcend into the virtual world, where they’re becoming ever more important as networks grow. Don’t be afraid to reach out to others online, and become a part of the conversation. On social networks, it’s expected.
Not everything is about money anymore. Recent findings suggest that the act of bartering goods and services in place of cash payment is becoming more and more popular, especially in a down economy. We are becoming more trusting of one another through successful reciprocity with others. If you’re a new startup business, consider finding creative ways to get your business off the ground, whether it’s offering free services or swapping tips with a fellow entrepreneur. Most of the time, people are more than willing to give advice and help someone else out – because they’ve been there, too.
Predictions
* Reciprocating links outside of SEO purposes will become more popular, using social networks as the main channel for doing so. We’ll have networks that provide complete transparency – including browsing histories – for the benefit of others.
* More online transactions will be done through bartering rather than for money as both a way to save money, and also to benefit from the knowledge of others who provide goodwill to others.
* Less passive following and more active listening and participation will be done across all platforms. Social networks relying entirely on interaction will begin to sprout, rather than be place holding profiles for users.
Who needs money? You can barter!
January 20th, 2010
January 19, 2010
On: http://tinyurl.com/yewlsm8
When Carrie Kerpen of Buzz Marketing was looking to create the “buzz” needed to get her business off the ground she faced a typical entrepreneur’s dilemma: she didn’t have any extra funds to allocate to the cause. So she took an old-fashioned route: bartering.
Starting out cash-strapped, the company –which today has 8 full-time employees and 30 part-timers in offices in New York City and Boston — worked out a quid-pro-quo relationship with a flower retailer that needed marketing help.
“The company provided us flowers and gifts that we sent to potential clients after meetings. It really added that extra ‘Wow’ factor,” said Kerpen, who founded the company with her husband in 2006. “It definitely made us look more creditable and helped us snag clients.”
Bartering allows businesses to exchange goods and services without hurting cash flow, which can be especially tight in today’s economy. Business-to-business barter transactions generate $12 billion annually, according to the International Reciprocal Trade Association Last year, more than 250,000 businesses engaged in bartering to help boost revenue. In these days the people come back to the old way of trading and if you need theirs and they need yours who needs money anymore?
To get off on the right foot here are five tips to keep in mind when bartering.
No. 1: Start Small
If it’s your first time bartering, don’t jump in head first, said Danielle McCormick, founder and CEO of MyCubi.com.
“If it’s a big project start with the person doing a small task to make sure the long-term relationship is going to work,” she said.
No. 2: Don’t Sell Yourself Short
If you are using an online bartering site make sure to really sell your qualities—treat it like a dating service.
“If you are an electrician include your experience, number of clients, a list of skills, recommendations and before-and-after pictures,” said John Moore, founder of the online bartering site U-Exchange.
Moore said businesses that are interested in bartering should go for it.
“Don’t just sit back and wait for people to come to you—make the initial contact to see what is out there,” he said.
No. 3: Keep it Professional
Treat a barter client like any other client, said Kerpen.
“Compare prices with others in the industry to make sure you are getting a fair deal and put everything in writing,” she said. When drawing up the contract, be sure to include a deadline for the services or goods to be delivered.
No. 4: Stay in Contact
It’s a good idea to check in with the barter client to make sure the exchange is on track.
“Have a monthly status meeting if the deal is long term. Communication is key, and you want to make sure everyone is happy,” Kerpen said.
No. 5: Don’t Forget Uncle Sam
There is no loophole for bartered transactions and trades are taxable in the year it is performed, according to the IRS.
The fair market value of the goods and services being exchanged should be declared as tax income.
Bartering returns in North Korea
January 20th, 2010
January 20, 2010
On: http://tinyurl.com/ydroj9y
As predicted by experts on North Korea’s economy, since the authorities have yet to officially release state prices, the North Korean people are now surviving by bartering.
A defector, who spoke with his family in North Hamkyung Province on Tuesday, reported the news to the Daily NK, “I called my family to send some money to them as I had heard they were in trouble, and they told me that the current situation is unspeakably terrible. They live only by bartering with others.” “The old way of trading is coming back and the people return to their roots.”
He explained further, “For now, state-designated prices are still not public, so people think that selling goods for cash now would mean making a loss. Therefore, bartering has become the main method of trading for the people.”
According to the defector, the barter value of products is decided according to their value in old money. For instance, before the currency redenomination, one Pollack was 1,500 won and a kilogram of corn was 900 won, so people barter one Pollack for a little less than two kilograms of corn. Other products are dealt with in the same way. Barter trade is carried out only privately in homes so as to avoid detection.
The source noted, “People complain that the authorities keep stressing the idea of a strong country in the 21st century while the people’s living conditions are no different from in ancient times.”
He added, “On January 8, people had a day off for Kim Jong Eun’s birthday, but it did not interest them. The succession issue cannot hold people’s interest; they just want everything to be put in order.”
My first experience in bartering
January 19th, 2010
January 18, 2010
The first time I ever thought about bartering I was sitting out on my patio on a sunny day after a number of incredibly hot sunny days, as I sat sweltering, it came to me… somewhere there had to be a construction company that needed a web site who would be willing to trade me for a deck cover…
I had just bought my house and a deck cover wasn’t high on the list of priorities based on that it’s an older house and plumbing and something strange called ‘knob and tube’ wiring had quickly taken all of my resources and immediate attention. I had been using a funky tent shade thingy like you take camping or you might see at a farmers market which worked fairly well. I was waiting patiently until the funds for a deck cover would either somehow magically appear or I saved up enough to consider it. But as fate would have it, during my parent’s 50th wedding anniversary party on the back lawn we were caught in a freak wind-storm and the tent structure blew up over the top of the house and was never seen again… I am sure it’s now in Oz or some unknown alternate universe. There were no casualties, well unless you count all the food… I am 3 years later still finding the shiny gold confetti ‘50’s’ in my lawn and gardens — as are all my neighbors and the munchkins I am sure.
First, I researched prices and companies just like I was ready to purchase – it seemed like a ‘sign’ when I found out that the value of a deck cover was almost exactly what I charged for a small business website. Ureaka! This could work… So, I started calling and emailing all of the construction/awning/handy man/roofing/awning companies in my area. This process took about 4 months, yes, seriously. I told them straight up what I wanted to do and if they were interested I sent them my portfolio and they came over to do a quote. Eventually I did find the right match and now enjoy my deck cover immensely!
Now I barter everything from crowns for my teeth to accupuncture – it’s a great way to get things done without having funds available or when you have better things to do with your money. It’s a win/win for both parties so when my business partner brought up the idea a few years later I was totally onboard and skills2barter was born.
Bartering in a foreign country
January 19th, 2010
January 18, 2010
I bought a little rug/ bedspread during my hols – lovely – cream, textured and glittering with sequins. I was pleased to knock it down to £50 from £130. I felt a bit bad bartering to be honest. As someone who makes things by hand, I know how time and skill should be rewarded, and I didn’t want to get away with a ridiculous price (mind you – I don’t think that happens these days!). However, I was really pleased to hear that exchanging skills and goods is alive and well in Marrakesh. A friend was offered a Moroccan pouffe for his jacket, and another guy I met traded his hat in part exchange for a carpet. Next time I must bring some titfers of my own!
