Posted on March 11th, 2010
Originally posted by kamal
http://blog.ormita.co.in/?p=129

Posted on March 4th, 2010
Originally posted by Shera Dalin
http://barterstrategies.wordpress.com/2010/03/04/barter-vs-haggle-the-dead-giveaway

Barter is the exchange of goods or services without the use of money. Haggling is negotiating a price for a good or service. How are they different? Here’s an example: When you go to a car dealership all ready to purchase a new vehicle, you probably dread dickering over the price with the salesperson. (If you love that, please let us know because we’re taking YOU with us the next time we have to buy a car.) All that back and forth makes most people nervous and uneasy; after all, you’re never sure you got the best possible price for the vehicle. In a nutshell, that negotiation is haggling.

If you were to walk into that same car lot with the intention to barter, you would have a very different experience. Before you went in you would have an idea of what sorts of goods and services you posses that might be useful to a car dealership. You would then ask to speak to the manager and explain that you’d like to trade your goods/services for a new ride. If you’re a mechanic, you could trade your skill in the repair shop. If you sell promotional products, you could trade coffee mugs, T-shirts or key chains with the dealership’s logo for your new wheels. That’s barter.

You may still end up haggling over the price of the vehicle because, let’s face it, rarely is the sticker price what the car is actually worth. Haggling is an integral part of the car purchase transaction. But you won’t haggle over the value of your mechanical skills or all those key chains. They have a set price and dickering isn’t part of that purchase. If the price you settle on for the car is $X, then the value of services/products you trade for your new wheels will be $X. That might mean you have to provide 1,000 hours of repair work or a few million little plastic key chains, but the value of those items will equal the price of the car.

Haggling can be part of barter. But barter doesn’t require haggling. So take a deep breath and relax. Bartering is way more fun than haggling and often the two won’t meet–not even for a blind date. Go ahead and give bartering a try. And leave that old haggle at home.

Posted on March 2nd, 2010
Originally posted by Ellis Smith
http://www.timesfreepress.com/news/2010/mar/02/bartering-networks-provide-liquidity-in-cash/?business

When Pilgrims landed at America’s shores, they bartered pelts for corn they needed to survive their first winter.Some business owners are now returning to this non-cash system of exchange in an attempt to soldier through an economic winter. Sophisticated electronic trade exchanges and business-to-business — or B2B — barter networks serve as the centerpiece of modern-day bartering.

Publicly traded International Monetary Systems, which claims nearly 450 Chattanooga members, operates the largest barter exchange in the U.S., according to CEO Don Mardak.

“It doesn’t often happen that two parties have the exact need at the exact same time, so we’ve created a virtual currency called trade dollars,” said Mr. Mardak. “We’ve created a secondary economy within the economy.”

Membership continues growing at the rate of about four a month, said Donna Burlingham, one of two brokers at the local IMS office.

“We have some manufacturers, we have some distributors, we have people who provide service and people who provide product,” she said. Wisconsin-based IMS processed $110 million in barter transactions and earned $14 million in revenue last year, according to SEC filings.

But IMS isn’t the only barter broker in town. Tradebank, a Lawrenceville, Ga.-based private company operating primarily in the Southeast, claims 500 Chattanooga businesses as network members. The list, which includes AJ’s Plumbing and the Pickle Barrel, counts members in every category of business, from duct cleaning to wedding services.

“We have a thing called trade university where we actually teach you how to barter,” said Jurgen Mootz, regional owner of Tradebank’s Chattanooga office. “As far as adding members, it has doubled from what it used to be; In the last six months it has taken off.”

Darla Blose, owner of Aqua Pool Service in Cleveland, Tenn., said when the going gets tough, the tough learn to barter.

“I was a little skeptical at first, but I’ve had no problems with it,” she said. “The incentive is that people nowadays are looking for ways to get things done without having to spend money, because everybody’s having a hard time with their money right now.”

Ken Grimes barters his limo service during off-peak hours in exchange for legal services, jewelry, travel, pest control, home improvement, office furniture and restaurant meals.

“It puts cars out on the road working as well as drivers out on the road working where otherwise they may be sitting still,” said Mr. Grimes. Landscaping company owner Glenn Wilser believes that the barter network has helped boost his business.

“The way I usually look at it is: It’s business I wouldn’t have gotten otherwise, so the fees that you pay are sort of like advertising, so you just kind of have to write it off as that,” Mr. Wilser said. While fees vary, participants typically pay a quarterly membership fee, as well a 10 to 12 percent transaction fee to be part of the network. “You have to limit yourself; you have to bring in enough real cash to pay the bills,” Mr. Wilser said. “If I took on every (barter) job that somebody wanted, I would go bankrupt, so you just have to say ‘No, I’m not taking any more trade right now.’”

Originally posted:
http://myfinanceblog.co.cc/5-creative-tips-for-business-owners-to-obtain-financing

Posted On: February 28, 2010

Capital is the crucial ingredient for any business to grow. This holds true whether you are a one-person firm with minimal revenue or a 100-person company with significant sales. Yet so many entrepreneurs and business owners complain about how difficult it is to attain. Here are just five of the numerous ways to access capital taken from the informative new book, Solving the Capital Equation.

Form strategic partnerships. Consider the following: Who is already reaching your client or customer base? Who offers products or services that may be a great fit for your client or customer base? Who has a skill set or functional expertise that your firm lacks? All of these entities would make great prospective partners. Identify them, then craft a win/win partnership. Why spend money you do not have when you have something else of value to offer them – your firm’s product and services! You can use partners to access the sales force, marketing, IT, accounting, management expertise – to name just a few – of the services you would otherwise have to pay for.

Barter. As a business owner, you have a product or service that someone wants. Otherwise you wouldn’t be in business. You can barter these products or services for those products and services you need to grow your business or service your customer. Or you could barter for personal items that you would typically have to withdraw funds from the company to pay yourself then pay for directly. You can barter for advertising, travel, legal or accounting services, televisions, landscaping, cleaning services. There are a lot of free barter websites, try it you can save a lot of money!

Find a strategic investor. Is there a larger company that would benefit directly from your service or product offering? If so, contact them. If you can convince them that your company can directly or indirectly positively impact their bottom line either through a sales increase or a cost reduction, you are likely to garner financing in the form of direct equity, a loan, use of their credit, prepaid contracts, or payment of development costs. Look around. Potential strategic investors abound.

Tap your suppliers. Are you trying to rapidly expand your business and need money to pay your suppliers? Why not ask your supplier to advance you the money? If your expansion will contribute a sizable portion of your supplier’s annual receipts, you can induce the vendor to provide a 12-18 month loan by promoting how he/she stands to benefit. At the least, negotiate a 90-day payment arrangement.

Seller finance. Who knows the business or asset better than the person or entity selling it? If you are growing your business through acquiring other businesses, seek seller financing. Give them a lien against the business so they get the business back if you default. Suggest it as a way for you to know you are getting what you paid for. Added benefit: reduces risks that the company has hidden problems which greatly decrease its value and that the owner would start another competing business.

Use these ideas to spark your creative thought process and get the money you need to elevate your business. You will see it works!

Posted on Tuesday, December 8th 2009, 10:29 AM
Originally posted by Catey Hill
DAILY NEWS STAFF WRITER

A plethora of sites like BarterQuest.com, SwapTree.com, U-exchange.com make online swapping a cinch

Take our Poll

What’s a girl to do when she’s dying for that oversized, button-down boyfriend sweater – but can’t afford it? What’s a man to do when he covets that brand-new X-Box game - but simply does not have it in his budget?  They’re going to swap, that’s what!

Ladies and gentleman, the latest way to get what you want without breaking the bank is to swap: trade your unwanted stuff for someone else’s stuff, and viola, you’ve got what you want without spending a dime for it.

From DVDs to clothes, from electronics to books, you can swap almost anything.  Swapping is the new shopping – only better!  Because really, why shell out your hard-earned cash for something if you can just swap for it?

Here’s how to swap:

Work the Web: Some sites facilitate in-person trades and others will let you swap with someone from almost anywhere on earth (you may pay a shipping charge on these sites).  Either way, it’s a great way to get the things you want without spending a ton.

Sites like BarterQuest.com, SwapTree.com, U-exchange.com, SwapTreasures.com and TitleTrader.com let you swap almost anything online.  PaperBackSwap.com and BookMooch.com are great for trading books; SwapStyle.com, ClothingSwaps.com, DignSwap.com and RehashClothes.com are great for trading clothes.  Try Zwaggle.com and SwapBabyGoods.com for trading clean, safe children’s toys with other parents. Craigslist.com can also be a goldmine – just check out their barter section. And there are tons more swap sites, so do your homework to find the site that makes sense for your swapping needs.

A word of warning:  Proceed with caution when swapping online.  Use reputable swap sites.  If you can, meet to exchange the items in person in a public place.  If you aren’t able to do that, make sure the person has a good seller-rating (if the site offers that feature) and that you see photos of the items.  Finally, go with your gut about online swappers – if you don’t have a good feeling about a person, swap with someone else.

Host a swap party: If all this online swapping isn’t your thing, tap into your network of family and friends to arrange a “swap night.”  Have everyone bring over the items to swap, and then exchange with each other to your heart’s content.  You can also swap services like dog-walking or babysitting.  If you don’t have a large enough network for a swap, try Meetup.com or Craigslist.com to arrange one in your community.

Posted on: February 2nd, 2010
Originally posted by: Lesley Foottit
http://www.morningadvertiser.co.uk/news.ma/article/85795

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.”

Posted on: January 21, 2010
http://www.fr.ricardo.ch/acheter/menage-et-maison/ustensiles-et-app.-menagers/fers-a-repasser/laura-star-magic–laurastar–ab-fr-1—–biel-bienne-/v/an549660614/

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.

Posted on: January 22, 2010
Originally posted by: Tara Lane, Staff Writer
http://sparxoo.com/2010/01/22/reciprocity-and-a-more-authentic-world/

“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.

Posted on: January 19, 2010
Originally posted by: Kathryn Buschman Vasel, FOXBusiness
http://www.foxsmallbusinesscenter.com/strategy/2010/01/19/small-businesses-need-know-bartering/

The old-fashioned technique that allows busine

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.

Posted on: January 20, 2010
Originally posted by: Yoo Gwan Hee
http://www.dailynk.com/english/read.php?cataId=nk01300&num=5928

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.”