Barter and Its Benefits

What is Barter?
Barter involves 2 parties. Each party wants to trade with each other and instead of exchanging cash for products or services, the exchange is carried out with products or services that each possesses. That is, there is a trade of a product or service that someone has, in return for another product or service the other party has.

Barter traces its origins back to ancient times, because as we all know, money as a form of exchange only came into being in history well after barter had been practiced for 100's of years. It was found that using money or coins as a medium of exchange was a lot easier to handle than exchanging products or services.

Barter can basically apply to almost any business that has products or services, because if they have something they can sell and exchange for money, then they can sell in exchange for products. Simply defined, therefore, barter is the exchange of goods and services without the involvement of cash.

Most of us, when young, engaged in barter, even if we didn't know we were doing so. For example, if you have ever traded your comics with a friend in exchange for his baseball bat or rugby ball, then you have engaged in the practice of barter. If you have helped your neighbour paint her fence in exchange for her cooking you a chocolate cake, or if the gentleman across the road helped you repair your car in exchange for borrowing your lawn mower, then you have been involved in the art of bartering.

The Art of Bartering
Some large companies have been engaged in barter for many years. It is something your business should consider because it has many benefits and can produce increased sales and conserve cash in some situations. As already explained, we have all bartered in some form or another, but it's only recently that the industry of barter has come into its own.

With the new technology available to businesses now, computers can track barter transactions and inventory and this has helped to expand the growth of this form of trading. In fact, now there is such a term as the "barter economy", as quite distinct from the "cash economy".

We have now grown what are known as "barter exchanges". These are groups that create markets for traders to function and come together to barter. Barter exchanges have also assisted in fuelling the huge growth of this industry. Today the barter industry is a billion dollar industry many times over and has become a very successful method in assisting in the growth of companies and facilitating trade without the use of cash.

There is no doubt that barter is big business and it's getting bigger year by year.

Why should you Barter at all?
The main reason businesses use barter is to conserve cash resources. As cash is the lifeblood of a business, any strategies to conserve this are welcomed with open arms. However, barter is more than saving cash; it is a method of marketing your goods and services and carrying on normally where products and services are exchanged, except cash dollars are replaced by barter dollars.

Barter definitely attracts customers and therefore sales the business would normally not have obtained otherwise. This is because a barter oriented business would rather use the barter facility than to outlay cash. This is acceptable, therefore, to all businesses that enjoy the barter system.

Barter generates sales that would not have happened if cash had been required to complete a purchase by the buying company. It's good also because it provides another advantage to a business. Where cash is short, the option of barter can ensure that a sale is not lost and, in fact, can grow sales figures substantially.

It enables expansion because it frees up the company's cash reserves for other needs, as well as reducing holdings of excess stocks. The fact that a business can achieve growth without the need for real cash, makes barter an attractive proposition that needs to be seriously investigated.

Copyright 2005 StartRunGrow

StartRunGrow ( is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.

In The News:

Mastering Negotiation: Conquer the Enemy Within  Supply and Demand Chain Executive
Negotiation as a Martial Art | The Source  Washington University in St. Louis Newsroom

Managing the Sales Negotiation Process

How many times have you heard:"You've got to drop your... Read More

Power Pricing - Getting the Right Price for Your Products and Services

There's an old joke about the New York City blackout.... Read More

The Six Rs for Changing MInds and Overcoming Resistance

This article borrows from Howard Gardner's book, "Changing Minds" (2004).... Read More

Ask for More - You May Get More

If you are involved with sales, how do you feel... Read More

Writing an RFP (Request for Proposal)

A while back, a potential client provided me... Read More

Negotiate to Your Advantage

The hardest and most important part of any negotiation is... Read More

National and Cultural Negotiation Style

Cultural and national negotiation styles reflect communication behaviors and the... Read More

Negotiating Skills: Ask For More Than You Expect To Get

It creates some negotiating room, and you might just get... Read More

How To Communicate Using Space

What Is Proxemics?The study of the communicative aspects of personal... Read More

While Youre Waiting

Not long ago, I made a partnership pitch, on behalf... Read More

Lets Make a Deal

Smart buyers will always ask for a better price. Unfortunately,... Read More

Win-Win Power Negotiating

Let's talk about win-win negotiating. Instead of trying to dominate... Read More

Negotiations: The Art, Science, & Sport of Online Deals

Negotiations can seem as complex as physics, and in fact,... Read More

Better Internal Proposals

A colleague of mine has a problem. We belong to... Read More

Are You Scaring Away Potential Customers?

When you are trying to make a sale and ask... Read More

Just Ask!

Ask and you shall receive & knock and it shall... Read More

Four Ways To Work Out Business Disputes

Business owners have four options to resolve disputes with partners,... Read More

Negotiating Technology Contracts

Have you ever tried to negotiate a deal for software,... Read More

Games are a Reflection of Behavior

You are standing on a small stage yelling, "What's the... Read More

Secrets of the Trade Revealed: Bartering for Business

In its simplest form, bartering involves an equal trade. One... Read More

Suppliers as Your Partners in Cost Reduction

This article is one of the many articles still to... Read More

Resolve Conflict In 6 Easy Steps - The BEDROL Method

The principles of Negotiation can work for you in any... Read More

Can a Service Be a Commodity

Well Enron dealt with this a little for instance an... Read More

Do You Want a Paycheck or a Passion? 10 Qualities Managers are Looking for in Hiring You

Based upon my research of over 300 managers in the... Read More

Negotiating Tactics: How To Strike A Negotiable Opening Shot

There is no right or wrong to fire up your... Read More