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
http://www.startrungrow.com

StartRunGrow (http://www.startrungrow.com) 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:

How China and Pakistan Negotiate  Carnegie Endowment for International Peace
How to negotiate continued remote work  Minneapolis Star Tribune

Negotiating Skills Will Get You Ahead

Negotiating skills can help you manage lots of different kinds... Read More

The Six Rs for Changing MInds and Overcoming Resistance

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

Dont Be Afraid Of Silence

In any conversation with two or more people, there is... Read More

Can a Corporate Executive Really Use The Beautiful Mind; To guide decision making?

I would like to comment on the "A Beautiful Mind"... Read More

The Art of Haggling

Did you know that at one time in this country... Read More

The Most Powerful Persuasion Skill Youll Ever Learn

Criteria ElicitationThis is without a doubt the most important persuasion... Read More

Better Internal Proposals

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

Communicating Across Time Horizons

There was a time in my life when I sold... Read More

Managing Conflict, in Life & Work: Using Ancient and Modern Approaches

"Conflict" is a word that can have varying degrees of... Read More

Neogtiation: How to be Right Without Making Other People Wrong

What exactly are we trying to accomplish by proving to... Read More

While Youre Waiting

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

30 Tips for Keeping Meeting Expenses to a Minimum

Money makes the world go 'round. And when it comes... Read More

So Whats Your Argument?

Arguments aren't always bad things. Sometimes They're used to convince... Read More

How Barter Can Help Your Business Online or Offline

How Barter Can Help Your BusinessBarter trade is a powerful... Read More

Negotiating Skills: Ask For More Than You Expect To Get

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

Can a Service Be a Commodity

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

Business: Keys To Negotiating Well

Whether it's buying a car, asking for a pay rise,... Read More

How To Communicate Using Space

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

Lets Make a Deal

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

How to Negotiate Effectively

You may be thinking, "Gary, I am a mom, housewife,... Read More

Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them

Last week, a wonderfully-skilled electrician installed a new light fixture... Read More

The Ultimate Truth in Persuasion

OK, so you want to improve your persuasion power right?Why?... Read More

How To Deal With A Complainer

How To Deal With A ComplainerA Complainer Is Characterized by:1.... Read More

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

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

Barter and Its Benefits

What is Barter? Barter involves 2 parties. Each party wants... Read More