Throughout the history of mankind, when the availability of currency goes down, the practice of barter exchange goes up. Barter is a method of trade where goods and services are exchanged that are equal in value. Whether for work or for personal gain, anyone who has something of value to trade can be included in the bartering system.
Different kinds of barter groups are becoming more and more popular today. Some kinds act as intermediaries, like online barter clubs, which have developed a system of units of value that are equivalent to a monetary system. This system of units is known as trade dollars or barter dollars. Trade dollars can be accrued and redeemed for services offered through the barter club.
For others, barter occurs as a direct trade using similar goods in demand such as vacation houses or wedding services. Each person's services can be mutually swapped for other services of equal value.
Using the Internet as a Trade Medium
Barter sites like International Monetary Systems and Craigslist are seeing a dramatic increase in activity. Individuals can use Craigslist to barter goods, household appliances, and computer gear. This website utilizes a method of honor and disgrace using community feedback to keep would-be scammers at bay. Other companies like ITEX, who have been around for 30 years and have 50,000 members are exchange clubs which cater primarily to businesses. The buyer and seller both pay a 6 percent cash charge after the barter agreement has been reached. TheSmarterBarter.com is a website that describes itself as a matchmaking service that offers a no charge bartering service and promotes a willingness to work with anyone who wants to barter like-value goods instead of using cash currency.
Christmas Fairs and holiday gift shows are another way to barter and they generated more than $2.7 million in sales in 2009. Since many companies are increasingly cash poor, bartering at Christmas Fairs gives small businesses a chance to dump excess inventory. For some companies, bartering has begun to make up 20 to 30 percent of their business incomes.
House Swapping
HomeExchange.com is an online barter vacation website where two families agree to trade homes for a vacation, usually between 1 and 3 weeks. Some listers even mutually agree to leave their cars for use. To get started, potential vacationers simply pick a country they would like to visit, choose a listing, and contact that member. There is a low monthly fee to join. To avoid misunderstandings, sample letters and agreements are available and there are suggested ground rules to follow. Each participant is asked to leave detailed instructions such as the nearest food store, where to find a spare key to the door, and how the telephone charges will be handled. House swapping gives the advantage of really getting to know a new or exotic country beyond the basic tourist parameters.
Bartering For Bridal Goods and Services
Trading in exchange for a dream wedding is becoming popular among future newlyweds. By using Craigslist, barter exchange clubs, or approaching local businesses, brides and grooms-to-be have been able to significantly reduce the cost of their weddings. Online clubs like Bigdaybarter.com offer websites where like-minded people come together and agree upon a mutual barter. Registration is required and the site asks that at least one service be posted by the registrant. Services that can be attained range from photographers and florists to wedding attire and ice sculptures.
Bartering with local businesses has also seen a rise in the wedding market. People with professional skills or their own small businesses are targeting businesses in their area for wedding goods to barter. By planning a wedding outside of the peak periods of May and June, potential barterers and vendors are more likely to trade because business may have slowed and there is extra inventory in stock. Also, getting married on a weekday rather than Friday, Saturday or Sunday will increase the chances of saving money.
Bartering Is Here To Stay
Overall, bartering has become an excellent way to exchange goods, services, and real estate in these days of low cash flow. People have begun to think out of the box in their endeavor to attain the things they need and want. The age old practice of bartering never really went away and as long as there are people with wants and needs, bartering in some form will continue indefinitely.
Sources:
The New York Times. New Buying Power, Despite the Economy (accessed February 22, 2010)
Small Business Trends. New Bartering Service Free For Small Business (accessed February 22, 2010)
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Christina Wedberg - Christina Wedberg is a freelance musician, writer and actor living in New York City. She holds a BM from Mannes College of Music in Jazz ...
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