Tag Archive for Barter exchange

Bartering – Learning to do at Home

by Nuria Almeida on 12/02/2011
orginally on: http://www.blog.smarttutor.com/bartering-learning-to-do-at-home/

Bartering has been making a comeback in our community- and many other places. In our homeschooling group, we all barter and it really helps keep our expenses down.
Bartering is simply the swapping of goods for services, goods for goods or services for services.Why pay for something when you can barter to absorb some of the costs associated with services you need?
For example, our homeschool group swaps babysitting duties with eachother so each person can each do their shopping without kids in tow.
A quick checklist to keep in mind when bartering is to:.

Know the value of what you want and what you have to barter.
For example, maybe you offer to clean a friend’s house in exchange for an item they are trying to sell. Once you pick the value of your cleaning service, you can negotiate.

Be Bold, But Don’t be Pushy
Set Specific Rules
These rules can be in the form of a formal document or a verbal agreement. Just make sure it’s understood by both parties.

Start Small
Bartering takes practice. To build confidence, start small and work your way up. After a little while, you will be an expert.

Be Fair
You will only get nothing for nothing. Make sure what you want and what you have to offer in trade are compatible.
Bartering is about creating a mutually beneficial transaction. It is an old art form, and by watching his parents bartering successfully, our son will learn from an early age a skill that is absolutely necessary during hard economic times.

An unsung marketing tool: business barter

Originally on http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/sales/an-unsung-marketing-tool-business-barter/article2142109//
By: Ryan Caligiuri

I think of marketing as being all about finding the right strategies and tools to help your company grow.

That means everything from finding competitive advantages to implementing multiple lead-generating programs to using a variety of ways, from traditional advertising to social media, to spread the word about what you have to offer.

ou also have to have in place strategies to keep costs in line – and find ways to get products or services your company needs to grow that you would normally pay for with cash, but which you might not be able to afford.

That’s where one of the oldest and most underutilized tools in the entrepreneur’s tool belt comes in. It’s called business barter.

It’s not rocket science and it’s not new, but for many small and cash-strapped businesses, it can be a very effective part of the arsenal for growth.

Running a small business, I like to keep my cash close and have to be careful about how I spend my money. I don’t want to spend on things I know I can barter for when I want something from someone, and I can give them something — my marketing services — in return.

Think I’m kidding? I’ve used barter for the last eight years to acquire everything from marketing materials to office furniture to a company car. Right now, I have three barter deals going for a complete website redesign; for a company rebranding (logos, business cards, etc.); and…for suits and ties.

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Bartering can help your company look and act the part.

A former client really wanted to give off the image of being an artsy and forward-looking organization. Its furnishings didn’t go with the image.

So it bartered its marketing services with a furniture retailer — and when clients saw the new, higher-end and more artsy furnishings, they commented on how much they matched the company’s branding.

Companies have not only saved money using business barter but have also created revenue streams out of these transactions.

Take, for example, a small radio station in Florida.

It was having a tough time making revenue to keep its doors open, so the owner decided to trade his product – advertising – for other products and services.

His first barter transaction was to swap advertising time on his radio station for about 1,000 electric can openers.

Most might look at this and see no opportunity, but the owner saw plenty and decided to try to sell the can openers over the air.

After a very short time, he sold them all, and made enough money to keep the station open.

But he didn’t stop there. He decided to continue trading products and services for advertising time. Continuing on this path, he turned that once-struggling station into a company that now generates about $1-billion a year in sales.

That company, by the way, is now called the Home Shopping Network.

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There are two types of barter that a small business can explore: a one-to-one trade or triangulation.

One-to-one trades are the simplest form of barter. You simply go to the most suitable business and propose a trade of your product or service for one of theirs.

One-to-one trades can also allow small businesses to enjoy significant cash savings, because they can trade something at retail for something of equal value in the marketplace.

For example, you might trade something you have to offer for $10,000 of equal retail value that might have only cost you $1,000 to develop. You end up saving yourself $9,000.

The other form of barter is called triangulation. That’s when you involve three or more transactions in a barter deal.

This form of barter comes in handy when the straight one-to-one transaction doesn’t work out because your initial partner is not interested in your product or service.

In that case, you can find another partner with something your initial partner may want. Get control of that product or service and then go back to the initial partner and complete the trade.

For example, let’s say you’re a creative agency and need new furniture for your office. You already tried trading your creative services with a furniture store but it wasn’t interested. So you ask what it would like. The answer: New carpets.

Knowing this, you go off to find a business that deals in carpets and propose a trade of $10,000 worth of carpet for $10,000 of creative services.

If they agree to the trade, you now control $10,000 worth of carpeting and can go back to the furniture store and trade it for $10,000 worth of furniture that you need for your own business.

If you’re going to try bartering, start with someone with whom you have a level of rapport. Maybe you know Web designers, graphic designers, printers or advertisers who might benefit from your products and services. If not, try out your first triangulation deal.

Be flexible and make sure you come up with a win-win proposition. If someone else charges more hourly for their work than you do, you may have to offer more hours of your time for less of theirs.

Think about the things that are missing in your business that you can’t afford to pay cash for but that would help your company grow better or stronger. Focus on going after barter deals for them.

Whatever you decide to do, start small. It will allow you a chance to refine your pitch, get comfortable with the process and become a seasoned specialist in business barter.

Some Benefits Of Using Bartering For Your Small Business

Originally on http://www.freefinancialtoday.com/2011/08/19/some-benefits-of-using-bartering-for-your-small-business/
By: Jules Vandermint

Bartering is becoming ever more popular as a method of commerce. The US Department of commerce says that between 20% and 25% of all of world trade is now done through this sort of method. As such, if you are setting up a small business then it is a good idea to take advantage of this tool. If you do choose to do this, here are some of the main benefits of using bartering for your small business.

One of the main benefits is the fact that barter increases new business opportunities. You can attract customers and referrals who would not have known about your business had you not joined a Barter network. Members of the network will be a lot more likely to choose you over your competition as there will be no outlay of cash and you can instead use Barter credits. This will then increase your cash sales due to the additional exposure and through referrals.

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Barter will also expand on your customer base. You can maintain your current customer base while continuing to expand on it through your network. If you offer a better service to your current customers then they are far more likely to pass on word of your service to others and therefore this will begin to increase your overall customer base.

The lifestyle that you lead will also improve as well. Being part of a network offers numerous benefits one of which will be the option of being able to use barter credits rather than real cash when you pay for different services and transactions. In addition to this, if you find a service that you require that is not part of the network you can then recruited then into the network and get a bonus for doing so.

When you want to join a network it is certainly possible to find numerous ones online. The idea that you do not have to live in any specific state joined a network is also a massive benefit.

These are just a few primary advantages that you will see when you join a barter network.

Bartering Sees Comeback with Businesses

originally on http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd by Tacoma Perry

Small business owners are getting creative during these tough economic times and sometimes that means conserving their cash.

And now, an old currency system is seeing new life and it’s helping small businesses survive and thrive.

Remember back in the day, in school, when you used to trade your cookies for a juice box or chips? Well it’s that same concept that’s allowing small businesses to keep their doors open in otherwise tough times.

It’s not a new concept, but among small businesses with tight budgets and dwindling customer prospects, it’s seeing a comeback – it’s bartering.

“Bartering essentially has been around since the beginning of time, even before your most common forms of currency being coins and then bills. People were essentially trading what they had for what they needed,” said Todd Gerry of Tradebank.

And while traditionally bartering has been done on a one-on-one basis, the concept has gotten much more sophisticated with the rise of bartering networks like Tradebank. Small business owners can offer their service or skill to hundreds of other businesses and get needed services or products in return.

“I get all my landscaping done, painting at my shop, gutters, dental care, I get all my basic necessities – prescription glasses,” said Joe Cox of Georgia Electric Service.

And he’s gotten those necessities without using cash. Joe cox is the owner of georgia electric service – and in exchange for his services, he says he’s able to get about 80% of what he uses on a daily basis. At a time when most businesses are cutting advertising budgets, cox has expanded his.

“I’ve got a billboard downtown, two blocks from the capital that I’ve got 100 percent on trade as well,” said Cox.

According to the folks at Tradebank, you don’t have to barter a lot in order for it to help your business. In fact, they say if you just barter 5 percent of the time, you can increase your bottom line by more than 30 percent.

“You normally have to spend time and money getting cash business, with barter, I actually have to turn away business. I’ve got more than I can do,” said Cox.

Tradebank is just one of dozens of bartering networks out there. They charge a one time retainer fee and a quarterly accounting fee – but both Cox and Gerry say your most important commodity is your service, skill or product.

“Everybody needs electrical work at one time or another. So it’s been a very positive experience for me,” said Cox.

“I think that business owners now more than ever realize that they’re going to have to be innovative in terms of how they bring new business through their doors,” said Gerry.

Experts say the key to bartering is finding the right network for you.