Archive for Barter News

The Five Most Important Things to Do Before Jumping Into a Bartering Arrangement

March 30, 2010 / The BarterQuest Team / One comment

Posted on: 29th March, 2010
Originally posted by Alyssa Gregory
http://www.sitepoint.com/blogs/2010/03/29/bartering-considerations/

Bartering is the exchange of goods or services for the goods and services offered by someone else. Money typically doesn’t change hands, provided the value of the exchange is deemed equivalent. Bartering can be a good way to get experience when you’re just starting out, fulfill a need without a financial investment, expand your network and find new business.

While it can seem like an informal situation, there are potential damaging consequences that can occur if you don’t do certain things to protect the bartering arrangement. Here is a checklist of the most important steps you should take before beginning a bartering relationship.

barter-checklist

Evaluate the Value

You want to make sure the arrangement isn’t lopsided, and that both parties are getting what they put into it. A mismatched barter can result in resentment, frustration and potentially even legal issues. To start, assign a dollar value to the goods or services that are to be traded. If there isn’t an even comparison, adjust the trade to make it comparable (i.e. trade 5 hours of a service A for 8 hours of service B).

Check References

Do your research into the person you’re considering bartering with, just as you would if you were hiring them to do something. Ask for references, check past work, dig into who they are and verify they have the skills and experience they are claiming. Just because bartering doesn’t involve money doesn’t mean it should imply discounted or less professional services, and you’ll save yourself a huge headache by verifying this in the early stages.

Use a Written Agreement

Again, just like any other business relationship, you should have a written agreement that explicitly outlines the terms of the arrangement. This is especially important when there isn’t a clear one-for-one exchange. Your agreement should outline the scope of the work on both sides, identify the deliverables, specify the duration or deadline for the work and spell out what happens if either side wants to end the arrangement before completion.

Keep Open Lines of Communication

Stay in the loop with your bartering partner to ensure that the trade is effective and that both sides are happy with the service they’re getting. If something isn’t working out as expected, or if you’re unhappy with the work you’re receiving, speak up and work toward a resolution. It’s also a good idea to schedule regular check-ins and milestones to make sure the bartered services don’t get dropped below paid work and forgotten.

Don’t Forget About Taxes

The rules for reporting barter transactions may vary depending on which form of bartering takes place and where you are located. According to the IRS, in the U.S. barter dollars are identical to real dollars for tax reporting, so you need to treat barter income as you would any other business activity. Keep good records and consult an accountant if you have questions or need advice.

Category: Barter News / Tags: , , , , , , ,

How to become a smart barterer

March 26, 2010 / The BarterQuest Team / No comments

Posted on: 26th March, 2010
Originally posted by fred
http://blog.ormitacorporate.com/?p=226

If you were paying any attention to feel-good news stories three years ago, you might remember a guy by the name of Kyle MacDonald. And if his name doesn’t ring a bell, perhaps his ticket to the national spotlight will: one red paperclip. MacDonald first traded the tiny office supply for a pen on Craigslist in 2005, and eventually kept trading until he ended up with a house. (And, as what usually happens in situations like these, a book deal soon followed.)

To be sure, MacDonald is a rare example of extreme success (and, perhaps, extremely good timing) when it comes to online bartering — there’s no telling what his journey would’ve looked like had he tried to trade that red paperclip after the economy started to falter. (For one, the house he ended up with most likely would’ve been a foreclosure.)

These days, though, swapping services in online forums is on the rise. SwapTreasures, an Internet bartering forum, has reported a traffic increase of 40% since the recession took hold, a member of the site’s support team wrote in an e-mail.

draft_lens6068962module47860922photo_1248380776Bartering_Hand_Shake

The bartering section of Craigslist undoubtedly features a wider cross-section of users, but as a result, the listings often come off reading like a virtual scrap heap. Still, students are using the site with varying degrees of success, trading everything from tennis lessons to baby-sitting sessions to get by without things getting too expensive.

Leia MonDragon, a 23-year-old Borough of Manhattan Community College student, began bartering for child services to supplement her freegan lifestyle. She hasn’t ended up with a house quite yet, but MonDragon uses Craigslist to barter for child care while she works or attends classes in the evenings. Since freeganism “is more based on the idea of gifting,” MonDragon said it’s necessary to barter for a service like babysitting.

“There are some beautiful ideas that go along with [freeganism],” MonDragon said, “but I need a baby sitter, so I need to barter.”

For her part, MonDragon offers to provide child care services or music lessons on her end of the barter deal, but since her trades often involve people looking after her child, she said she takes extra precautions when selecting someone for the other end of the trade. Her advice? Take things slow.

“There is no rush,” she said. ” Get references [and] get to know the people you’re working with. If people ever ever want to rush you, don’t trust them.”

Some other tips for mastering the art of the Internet barter:

* Go with your gut. MonDragon drives the point home: “Creeps often come across as creepy.” If someone wants to rush a deal or starts pelting you with off-the-wall demands, you have every right to pull the plug on the transaction. It’s online bartering, not an arranged marriage.

* Do some “freesearch.” Sites such as SwapTreasures and BarterQuest offer barter services in the same manner as Craigslist. Peruse the postings around campus, in local coffee shops and in alternative newspapers. You might be surprised at what you find.

* Tell people where you will be when it comes time to trade. Better yet, bring a friend with you when it comes time to swap, and meet in a public place. “If you have a cell phone, bring it with you when you go to meet people,” MonDragon advises.

* Scour sites for freebies. Craigslist has a robust “free” section on the site, where its denizens give away everything from furniture to old CD’s, and the recession has influenced SwapTreasures to build a “donation” area to its site in order to provide users with items they need. (Spring cleaning, anyone?)

If you’re not quite ready to venture into the world of online trading, another option could be to start a bartering club or meet-up group amongst friends or classmates. Some tips:

* Make your purpose known, then build a community. Start a Meetup group, which would allow people to RSVP, post their needs and network with each other. You can also publicize through Facebook, Twitter and other channels.

* Don’t be afraid to reach out. Maybe your neighbor is fantastic at cutting and coloring hair, and maybe you’re awesome at graphic design. Maybe said neighbor could use a new business card logo as badly as you might need your roots done — do you see where I’m going with this?Don’t be shy.

* Have fun. You might discover new friends, a new lifestyle or a new hobby you never thought you’d develop. “Someone I am working out a barter with wants to teach me fire spinning,” MonDragon said. “That’s pretty awesome.”

Category: Barter News / Tags: , , , , , , ,

Bartering to Save Money

March 19, 2010 / The BarterQuest Team / No comments

Posted on March 18th, 2010
Originally posted by Renita Perrone

http://www.bocamag.com/Blogs/The-Coupon-Queen/March-2010/Barter-Your-Way-to-Savings

In tough economies such as we are currently experiencing, a good way to save some money is to barter for services. Many years ago, people bartered for services far more than we do. Remember when watching TV shows, like “Little House On the Prairie” where the town doctor was overrun with chickens because that is how people would pay him!

There are so many ways to barter. Maybe you don’t have what you consider to be a special skill. But we all have some abilities that others may want. Perhaps it is handyman work, cleaning houses, detailing cars, babysitting, bookkeeping, lawn care, etc. Or maybe you have a green thumb and love to garden.  Many people end up with more veggies than their family can use. Others would be thrilled to have home-grown produce!

Another idea is group bartering. Instead of trading child care with the same person each time, a group of moms got together and set up “barter bucks.” They each can start off with a certain number of “barter bucks” and determined a set value for childcare. When they needed childcare they would find someone else in the group that they could “pay” to watch their kids. But, if you ran out of barter bucks, that meant you weren’t doing your share and now couldn’t ask one of them to do childcare for you until you had earned barter bucks by watching someone else’s children. This type of system could easily be set up among a group of people with varying talents/skills.

There are many options for bartering. It’s all about thinking creatively, and being bold enough to ask someone if they would be willing to trade services. In some cases, you may be able to barter for the labor, but have to pay for materials. But keep in mind that labor often is the most expensive part of any bill.

Category: Barter News / Tags: , , , ,

Bartering to get What you NEED for What you WANT

March 15, 2010 / The BarterQuest Team / No comments

Posted on March 15th, 2010
Originally posted by Barb di Renzo

http://blog.vici.ro/2010/03/15/barter-your-services-to-meet-your-needs-barb-di-renzo

Bartering is a clever and creative alternative for families on a
budget. It’s a way of meeting your needs without spending any
money. Our need for professional services can range anywhere
from plumbers and landscapers to dentists or lawyers. It can
even be something as simple as music lessons for your child. No
matter what the needs are, bartering your services in return for
someone else’s is the perfect solution to conserving your cash
flow.

Online barter sites are a great way to find many people that
share your interest, like the plumber or music teacher. You also
have the advantage of checking in on a daily basis to see what
other services are being offered. You may even come across a
service that you had never thought of but one you could
certainly use. Shop around and have a look at different barter
sites and find what’s best for you. These are just a few simple
guidelines to follow that will get you on your way to some
successful trades.

1. Take the time to describe your services by listing your years
of experience and education. The more detailed, the likelier it
is that someone will contact you.

2. Respond to a trade offer with etiquette. Even if you’re not
interested, a simple “No Thank You” is better than no response
at all.

3. Don’t be afraid to approach people with offers. What’s the
worst they can say?

4. Be realistic in the value of services you are offering and
what you are asking for in return.

5. Have fun, it’s not rocket science. If a barter club or
website seems too confusing, move on.

Category: All About Bartering, Barter News / Tags: , , , ,

Barter for Business

March 11, 2010 / The BarterQuest Team / No comments

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

When people preach barter to businesses or individuals as a method to reduce their expenses people generally think “why”? I mean, why would they prefer to buy stuff using barter dollars than in cash? Why would somebody pay the expenses of running their business through barter dollars than the cash ones? I know because that is the first question that would come to my mind.
Business Men Shaking Hands

The answer to this question can be explained in a few points:

  • Extra income: barter income is income generated over and above your existing cash sales (for which you are already making the necessary expenses). Also, these barter sales are generated with little or no additional costs. This means that, in order to take on a few extra barter deals, your main fixed expenses do not increase (i.e. rent, salaries of employees, etc). There may be a small increase in expense to service the new customer but given that your business should already be doing well enough to cover its existing cash expenses this new revenue comes at a higher profit margin.
  • New customers: barter exchanges bring you new customers. The primary reason that these businesses deal with you is because they are a part of the barter network. These are not current cash customers, and are probably not customers you could easily attract in the cash market.

The reason for this is quite simple. In the cash marketplace the number of customers you have is limited by the amount of people who hear about your business in one way or another. In the barter marketplace a separate organisation is going out and sourcing new sales for you from businesses who already have existing cash suppliers but who would prefer to do deals on a barter basis in order to reduce their own overheads

  • Income from unused resources: the barter dollars that you earn are income generated by optimum utilisation of your otherwise unused, or partially used, resources – e.g. unsold appointment slots, unoccupied space, free time of employees, unsold perishable and non perishable inventory etc. If these resources can be tapped to generate barter dollars which, in-turn, can be used to buy necessary equipment, services or advertising then you have turned an under-utilised asset into something of value.
  • Barter commission, a small expense: barter organisations work on a cash commission -  so every new sale they bring you costs a fee between 7% to 10%. Now compare this to the cost of generating a new sale in the cash market. Imagine spending large sums on additional advertising but having no guarantees that the advertising campaign will generate new sales. In comparison: the barter company only charges a commission after it brings you a new sale. In this instance there is no risky advertising, sales or marketing capital outlay to get new customers.
  • Income will be used to replace cash: even though these sales generate barter dollars these barter dollars can be used wherever possible instead of cash. You will use these dollars to buy products and services that are necessary to run your business. Hence, you will reduce your cash expenses. In-turn, your cash profit will increase.

Barter is helpful offsetting the cost of advertising, materials and everything else associated with our business. It’s just that you need to learn how and where to use barter.

Category: Barter News / Tags: , , , , , ,

Bartering and Haggling – What’s the Difference?

March 8, 2010 / The BarterQuest Team / No comments

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.

Category: All About Bartering, Barter News / Tags: , , , , , , ,

Bartering Networks in our Economy

March 2, 2010 / The BarterQuest Team / No comments

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.’”

Category: Barter News / Tags: , , , , ,

5 Tips for Business Owners

March 1, 2010 / The BarterQuest Team / No comments

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!

Category: Barter News / Tags: , , , , , , ,

Swapping is the new Shopping

February 16, 2010 / The BarterQuest Team / No comments

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

alg_shopping-bags

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.

Category: Barter News /

Barter Economy – Pub History

February 2, 2010 / The BarterQuest Team / One comment

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.

pub_britannia_v2

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.”

Category: Barter News / Tags: , , , , , , , ,
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