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Things to Remember Before you Barter…

Barter

Posted on December 7th, 2009
http://guidetoagreatbusiness.com/?p=1953

If you find yourself without access to currency, bartering is a method by which you may secure items in trade. Another benefit of bartering is that traded items can help you generate goodwill from others and secure needed services. However, in order engage in a successful trade, you will need to be prepared.

As you consider which items you may wish to collect, here are some guidelines that I think may be helpful.

LOOK FOR MEDIUM QUALITY AT LOW PRICES
Remember that goods purchased for trade are not for your own personal use. Your outlay of funds now is an investment designed to generate a high profit for you later. Don’t purchase junk, but look for good prices on good products that are in the mid-range of quality.

Tools can be found in varied quality. When purchasing for yourself, you’ll want the best tools you can afford, but when purchasing for trade, good quality at a discount price is preferable. You won’t be able to trade junk, but you can find good bargains at flea markets, consignment shops, pawn shops, garage sales, yard sales, estate sales, and other discount stores.

WHEN NEEDED, REPAIRED ITEMS ARE JUST AS GOOD AS NEW
When deciding which items you’ll trade, don’t forget to consider your skills. Slightly worn and used items can be restored to full functionality if you have the know-how to make repairs.

ITEMS WITH MORE THAN ONE USE
Look for things which can be used for more than one purpose. This will save storage space and increase your opportunities to trade. Items such as duct tape, tarps, string or twine, blankets, rubber bands, buckets, basins, soap, and assorted cloth fall into this category.

CREATE YOUR OWN BARTER GOODS
It’s a good idea to learn a skill that will allow you to make your own goods for trade. A helpful skill is knowing how to manufacture ammunition. Read up on bullet swaging to learn how to do this. Skills in metalworking, sewing, pottery, masonry, soap making, candle making and foraging will be beneficial for bartering as well as for your own personal use.

INFORMATION

Reference books on self-sufficiency are good trade items. Vary your collection with entertaining fiction. Valuable literature will be that which offers both an entertaining story AND an education. Shop for used books offered at a discount.

Bartering, New Approach, Old Idea

Barter

Posted on December 3rd, 2009
Original post by: Life Compass

Bartering system is not something new for us, it has deep historical roots. The entire business setup of our ancestors was primarily based on bartering. When we go through the business chapters of the old days, we can note how people used to do their daily business to survive. Many folks still find it tricky to recognize bartering as one of the fast growing form of engaging in business without involving money. On the contrary, bartering is growing in renown today with enterprises and consumers realizing how great way it is to budget and how creative way it is to lower costs. Credit goes to the modern technology as bartering has become alive again. The internet has seriously helped it to make a powerful comeback and folk now may be able to trade services or products without using money.

Bartering has proven to be an effective way to ease cash flow issues for established and expanding businesses. It also helps in building a customer base for the new businesspeople. In bartering business, you can trade everything from landscaping, furniture, printing, travel, and so on. Bartering is proving itself as a cheap and sensible way to economize. Actually, bartering is everywhere, even at our home. Don’t you remember when your mum had said ‘if you do your home work, you would get chocolate’. Bartering is an element of our life, though unnoticed. We do barter in different forms. Bartering is present in different magnitudes, from our houses to a well established business empire.

If we know the correct way to barter, many resources and probabilities will be opened for us. It is an innocent way to look after our needs while also offering others what they require all without involving money. On a wider and professional scale, we can offer our services and products we no longer need, in return for getting from others the goods and services that they no longer need. Bartering can help us become a successful trader without involving money.

In Lean Times, Restaurants Barter for Trade Services

Article originally posted in The Wall Street Journal
On: December 3rd, 2009
Written by: Julie Jargon

Independent restaurants are turning to an old-fashioned method to fill tables—barter.

As they struggle to keep customers and pay the monthly bills, restaurants are swapping food for services like oven-hood cleaning and pest control.

Bartering helps restaurants fill seats, reassuring prospective customers who might be turned off by the sight of a vacant eatery. It also attracts new customers when tradespeople bring friends along, reduces some costs, and helps retain employees who can’t scoop tips off empty tables.

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It’s hardly a permanent fix for ailing restaurants, which still need cash to cover such expenses as rent, mortgages, taxes and utilities. But bartering is an especially useful tool for independent restaurants that, unlike some chains, lack access to corporate credit lines or cash.

Many restaurants are using barter exchanges that track and manage the transactions, which count as taxable income and must be recorded for tax purposes. Rather than traditional bartering, in which services are swapped directly between vendors, most barter exchanges use a “round robin” approach that offers flexibility for both restaurants and service people. For example, a plumber uses trade credits accumulated at an exchange to pay for a restaurant meal. The restaurant owner can use the credits spent by the plumber to “purchase” a variety of services offered by appliance repairmen, electricians and other exchange clients. The exchange acts as a bank, keeping track of credits and collecting fees on each transaction.

Tony Romano, owner of Marcello’s Pasta Grill in Tempe, Ariz., where business is off 40% from three years ago, joined the Arizona Trade Exchange in October. Since joining the exchange, he says he’s been averaging $2,000 per week in trade credits from tradespeople, which has allowed him to pay for almost all of his monthly expenses—from laundry to fire-extinguisher maintenance—without writing a check.

Although the restaurant doesn’t receive cash for the food, the tradespeople usually tip well, Mr. Romano says, which keeps his wait staff happy.

He says his traffic has increased 10% in the last month. New exchange clients also have led to catering jobs. “A lot of small businesses can’t afford to take their employees out for a Christmas party, but they can barter it,” he says. “I’ve booked two lawyers’ offices and three dentists’ holiday parties.”

[iberianpig]

Independent restaurants have fared slightly better in the last year than chain restaurants, though it’s hard to say how much bartering has helped. Same-store sales at independent restaurants declined 9% for the year ended Sept. 30, while same-store sales at chains declined 9.7% during that time, according to restaurant consulting firm Technomic Inc.

Rob Miller, president of the Arizona Trade Exchange, says he now has more than 30 restaurants involved in his exchange, up 20% from a year ago. The exchange charges a one-time $495 membership fee as well as a $12.50 monthly fee, and takes a 12% cut of each transaction from the person making the trade purchase.

Ric Zampatti, chief executive of The Barter Company, an Atlanta-based trade exchange with clients in South Carolina, Florida and Georgia, says his business is up 10% in the last year, due partly to signing up 35 new restaurants.

Tradespeople also appear to be spending more when they go out to eat. A trade credit is worth a dollar; Mr. Miller says he used to see tradespeople buy restaurant credits in batches of 100 or 200; lately, he says people are buying restaurant trade credits worth $300 to $500 at a time.

Cody Smith, owner of Dynamic Pest Control in Mesa, Ariz., has been cashing in his trade credits at restaurants more frequently in the past six months. “It’s a great way to take the family out, enjoy a meal and walk away with very little cash out of your pocket.”

Trading his pest control services for restaurant meals and other services has brought in new clients and boosted his sales by 15% in the last year, due partly to new cash-paying clients who aren’t part of the exchange, Mr. Smith says.

Atlanta restaurateur Nancy Castellucci recently opened a fourth eatery called the Iberian Pig in an historic building that needed to be brought up to code. She used barter credits to cover 60% of the refurbishment costs.

“We would have had to go to the bank otherwise and we didn’t want to go to the bank. When you have barter dollars, it’s a much cheaper way to borrow money because you’re not actually borrowing money, you’re borrowing goods and services and not paying interest.”

Mr. Zampatti of the Atlanta exchange says he’s seeing restaurants increasingly use barter for routine maintenance costs. “In the past, restaurant owners would use barter to upgrade their lifestyle, like to go on vacation or buy jewelry, but because of the economy, now they’re using it to pay for their business expenses.”

Write to Julie Jargon at julie.jargon@wsj.com

How to Barter for a Self-Reliant Lifestyle…

Posted on December 2nd, 2009
By: DDFD on Self Reliance Exchange
http://www.self-reliance-exchange.com/?p=2907

Self reliance by its very name implies going it alone, but I think cooperation and exchange (barter) has a place in self reliant living. Barter is a non-monetary exchange of value. I am not discussing formal bartering between commercial professionals– that can result in a taxable event. For example, an accountant offering tax prep services to a home improvement contractor in exchange for work at his house is probably a taxable event.

What I am talking about are the non-taxable exchanges between family, friends, and neighbors. This is not a new idea– just a neglected or forgotten one.

When I was a kid, I remember a neighbor with talent for auto repair who helped on almost all auto repair projects in the neighborhood. In return, he received assistance on yard work, painting, and other odd jobs. This is the sort of “bartering” I am thinking of these days.

What can be bartered? I thought I would share just a few ideas:

* Repair or improvement skills– auto, carpentry, electrical, painting, plumbing
* Ride services– kids to school or events, elderly to appointments, trips to the airport
* Food– cooking or grocery runs for the sick or shut-in
* People watching– sitting for kids or companionship for elderly
* Tutoring– educational, art, or musical
* Boarding animals– vacation or regular sitting

So how do you barter? Here is a simple approach:

* Communicate– let people know what you have and what you need
* Commit– a handshake and your word
* Deliver– be sure to come through for people
* Share– talk your fellow barterers up describing the experience to others

Sometimes cash isn’t needed to get things done or as valuable to others as an exchange might be. Always try to identify opportunities to barter– as in all things self reliant, be creative!

How to Decrease our Business costs?

Posted on November 30th, 2009
Original post by: Caleb Rodriguez

http://technologyofmanagement.blogspot.com/2009/11/10-effective-ways-to-reduce-business.html

10 effective ways to reduce business costs

cut_costs

1st Barter If you have a business that should be bartering goods and services with other companies. You should try to trade for something before you buy. Barter deals usually require little or no money.

2nd Network Try networking your business with other companies. You can view or mailing list. This stream of marketing and advertising. You may also try bartering goods and services with them.

3rd Wholesale / bulk saves money to buy your supplies in bulk. You can create a membership at a wholesale warehouse or buy through mail for a wholesaler. Buy the supplies you are always running out.

4th Free Stuff You should try visiting the thousands of freebie sites on the Inteet before buying your company provides. Here you can find free software, graphics, backgrounds, business services online, etc.

5th Rent Rent Have you ever purchased equipment used in only a short period of time? You can only have the equipment on loan from someone else or rented the equipment from a “rent-all” business.

6th Online / Offline Auctions You can lower prices for supplies and equipment auctions online and offline. I’m not saying all the time, but before paying the retail sales prove these elements before they offer.

7th Plan Ahead Make a list of business supplies or equipment needed for the future. Keep an eye on the shops, have a big turnover. Purchase of goods, if they are on sale before you need it.

8th Used Stuff If your business equipment and supplies is not required to be new, buy them used. Here you can find items used in yard and garage sales, shopping, things for sale message boards and newsgroups etc.

9th Negotiate You should always try to negotiate a lower price for all companies or accessories. Not bad for trying. They claim to be a seller in a parking lot.

10th Search You can always looking for new suppliers for your business supplies and equipment. If you wish to suppliers with lower prices and better quality. Not only with some.

Bartering Instead of Going Bust.

Untitled

Posted on November 28th, 2009
http://www.trcb.com/employment/getting-the-job/bartering-instead-of-going-bust-9006.htm

Bartering is a system of trade that predates the use of money, whereby you trade your skills, services, or products for something you want from someone else.

About 25 years ago, during a recession in the early 1980s, a lot of bartering clubs sprang up, so people who were out-of-work or having financial problems could increase the funds available to them. Once people joined the group, they could turn their skills, services or products into points; then others could employ them or purchase their products using the points they had accumulated in their own accounts. And if no one wanted to use one’s skills, services, or products, they would accumulate negative points up to a cap, until they found a way for others to want what they offered. Through this system, these clubs sought to achieve a fair balance between what people were getting and giving.

As an organizer, think of running a barter service as a new business, which can be very successful if you have the skills needed to run the business, such as a good head for figures, an attention to detail for everyday operations, and good communication, marketing, and sales skills to promote the service. If you simply want to participate in bartering, you might do this directly by offering an exchange with your own contacts or try posting whatever you are offering on one of the social media sites like LinkedIn.

To determine what to list, think about what you have done in the past and list what you can offer that might be of interest to someone else. If you have a lot to offer, divide up your skills, services, or products by category and post them separately.

Consider Bartering When Paying Your Tuition

Posted on November, 24th 2009
Original post by: DailySkiff
http://media.www.tcudailyskiff.com/media/storage/paper792/news/2009/11/24/Opinion/Satire.Consider.Bartering.When.Paying.Your.Tuition-3840150.shtml

Since tuition is set to increase to $30,000 for the 2010-2011 school year, students are going to have to be more creative with how they pay for their tuition. While it is beneficial to get a summer job or practice saving money during the year, I think it’s time we reinvigorate a time-honored tradition: bartering.

Frankly, I can’t afford the $30,000 next year, even with my scholarship and a summer job. But I don’t want to disrespect the education I’m receiving by not paying my bills. So when the first bill drops in my account, I plan to visit Chancellor Victor Boschini in his office and bring him my tuition deposit personally. He accepts cows as payment, right?

If not, I’m sure I can get a hold of a chicken or two. Times are tough though. He might have to make do with a pair of slightly-used tennis shoes and my good word that I will get TCU my tuition payment as soon as the next farmers market opens.

In my mind, bartering is a tradition that faded away unnecessarily with the advent of coinage. Even as the great empires of the world expanded, and with them the use of a standardized coin, bartering is a practice that remained. You scratch my back, I’ll scratch yours. You let me copy your notes from class, and I won’t tell your parents exactly how drunk you were at the last tailgate. It’s a fair (mostly) and often interesting exchange.

Another benefit of bartering is determining what others value beyond money. Sure, cold hard cash makes the rest of your unappealing Christmas presents seem a little more bearable, but why settle for cash when you can have a pair of handmade socks from your grandmother, fresh off the knitting needles? How about making someone else a meal in exchange for help studying? Supposing you can cook, this is a pretty sweet deal.

While it’s not quite as fair anymore to trade your daughter for a fresh plot of land, there are many benefits to bartering. It can, in fact, increase the breadth of our education and the university should support it.

In Bad Times, Bartering Can Beat Buying

Why barter? Here are some reasons, and some cautions.

Originally posted by Laura Cohn

barter

– It’s the new national pastime. Okay, baseball still wins. But given the economic downturn, many people are reverting to this ancient form of commerce. Craigslist recently reported that bartering activity on the site had jumped more than 80 percent in the past year. Sites such as BarterQuest.com report a surge in interest, too. BarterQuest, which offers swaps on a wide variety of goods and services, drew more than 100,000 visitors just two months after the Web site launched late last year. The reason? Bartering is addictive — and fun. Kent Berryman, founder of  Swap-It-Now.com, says that once users post one item, they usually offer up more.

– You can trade just about anything. Want to upgrade your camera? Online retailer Adorama will give you a free quote on a price for your old camera and cut you a check or offer a credit toward new equipment. Dying to break your car lease? Go to Swapalease.com or LeaseTrader.com, which, for a fee, will pair people who want to unload their leases with people who want to assume them. But don’t stop there. At SwapThing.com, recent trades included a gas clothes dryer for a high-speed table saw, a personal-shopping jaunt for a Nintendo Game Boy and games, and a service swap between a hairdresser and an accountant.

– Let the barterer beware. Craigslist doesn’t prescreen users. So if you’re looking to swap for a service you really need — such as babysitting — start by contacting friends and neighbors. Or try a site that verifies the addresses and phone numbers of its users, such as BarterBee.com. BarterBee lets you trade CDs, movies and video games free of charge. But, says chief executive Robert Alvin, be sure that you know what your product or service is worth. “If you list it too high, it won’t move,” he says.

Discover the Rewards of Small Business Bartering

original post by Darrell Zahorsky, About.com

Whether you are starting or growing a small business bartering can aid in preserving cash to help get your venture launched or expand. Bartering is a must have success tactic for operating your small business.

Bartering can be defined as the exchange of goods or services for other goods or services. It is a transaction where no money changes hands. Bartering is estimated to exchange 8.25 billion a year in trade for 2004, according to the International Reciprocal Trade Association.

Advantages of Small Business Bartering

Free Excess Inventory or Capacity. If your business has built up idle capacity or has a large inventory, then bartering offers a means to move goods and improve your operations. Bartering has been a huge boost to companies during recessions to help move excess inventory and goods. If you have aging inventory or an outdated asset, then bartering can make sense for your business.

Help Cycles of Seasonality. Any business struggling with the ebb and flow of having a seasonal business can use barter exchange of goods and services during a slow period.

Preserve Capital. Many small businesses at certain periods during their business lifecycle will have periods of slower cash flow or limited capital. Start-ups and expansion companies with limited money for growth can use bartering as a strategic tool to acquire needed services.

Buy Media Bartering may be the simple reason your competitors are buying more advertising than you and outselling your small business. By turning your excess inventory or services into print, TV, or other forms of media, your company can maximize marketing and improve its bottom line.

5 Things You Need To Know About Business Barter

1. Money Pit: Beware of troubled companies on a quick downward spiral to bankruptcy. If your barter partner is in financial trouble and seeks bankruptcy, you may never receive your share of the barter agreement.

2. Time and Money Equivalent: Attach a time or money value to the barter. For a win-win situation to exist in a barter agreement both parties involved need to sit down and compare the exchange of goods and services in a quantitative fashion.

3. Tax Issues: Bartering does not offer a tax loophole to avoid taxation. According to the IRS tax website, “Income from bartering is taxable in the year in which you receive the goods or services. Generally, you report this income on Schedule C, Profit or Loss from Business Form 1040.”

4. Business Barter Relationship: Any barter relation should be examined against the value added to your small business. A barter of 200 lbs of animal feed is going to be useless to a management consulting firm; but 3 months of free magazine advertising can greatly improve cash flow and aid your profits. If your services are not in high demand by your barter target, consider a barter exchange group.

5. Barter Exchanges: Hundreds of barter exchange groups operate in America, offering an efficient channel to barter for small business. Barter exchanges allow companies to have access to more goods and services in a quicker fashion. For instance, a graphic design firm may exchange its services with a pet food company for trade credits. The pet food company in turn can exchange its trade credits for another member`s service, such as tax preparation.

Barter exchange groups are often profit driven associations, so compare groups to examine benefits, membership costs, and obtain member references. Make sure you complete due diligence and contact organizations like the Better Business Bureau.

Is bartering for your small business? As expressed in “What They Still Don’t Teach You at Harvard Business School,” business guru Mark H. McCormack says, “I am convinced that most companies don’t maximize their barter possibilities. Instead of aggressively reducing costs by trading their servi