Bartering is a form of payment that’s been used for centuries. Whether you are trading chickens for a goat or conducting a more modern day exchange, bartering is a great way to get what you need without having to pay cash. Of course, as with any form of payment, there are definitely some things to be aware of. So, below are some tips to make sure your barter goes as smoothly as possible.
Exchange Based On Time
When you are trading someone for completely different services, it can be difficult to ascertain what constitutes as an even trade. One of the best ways that you can barter evenly is to trade time. If it takes you two hours to do your handyman’s taxes, and it takes him two hours to tile your bathroom, then your time is traded equally. Each one of you is doing something that the other would prefer to avoid. This makes each person feel as though they are getting an excellent deal. If you feel that your service is worth more than someone else’s or that you had to put in more time and education to be able to do your service, you can always exchange based on value.
Exchange Based On Value
Sometimes, you will have to increase the quantity of your side of the barter in order to receive something of greater value. For example, you might own an art and framing business, but you might want landscaping for your home. You might have to exchange several pieces of art for a nice landscaping job. Similarly, you might have to detail several cars if you want a dental appointment in exchange. These are examples of exchanging based on value.
Make a Contract
Many people who barter make the mistake of agreeing to terms with a handshake. While you may trust someone implicitly, sometimes it’s simply helpful to write down everyone’s expectations so that no one gets a false sense of hope. This is also important if you are dealing with friends or family, just to have a signed record of the agreement. Remember that if there is a problem with your deal, a contract will be your only evidence of an agreement.
Agree On a Time Frame
Some projects and services take longer than others. If you are building furniture for someone, it might take a lot longer than someone completing an eye exam. Despite this, it’s important to remember that you are treating your barter as you would with any other business exchange. That means completing projects in a timely manner and ensuring that your client doesn’t have to call you and remind you that you owe them something.
Treat Them Equally
It’s easy to put a project on the back burner if you aren’t waiting for a cash payment, so it’s important to remind yourself that your clients are all of equal importance, regardless of their payment methods. If a job takes longer than you expect or becomes frustrating, just remember that you are also getting something you want out of your bartering deal. Treat them as you would want to be treated.
As evidenced, bartering is a great payment method that has been proven to work for hundreds of years. However, it’s not without its flaws. So, remember to think carefully about how you want to exchange services or products, write down your expectations, and treat each other with respect. Complete those steps, and you should have a great experience bartering.
Have you ever used bartering to get what you want? Were you successful in your exchange?
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Written by Catherine Alford
Catherine Alford is a freelance writer who currently lives in the Caribbean with her husband and spoiled pup, Julep. She received a B.A. from The College of William and Mary and an M.A. from Virginia Tech. When she is not writing for various personal finance websites, she enjoys sharing her frugal and fabulous adventures on her blog, BudgetBlonde.com.
Catherine,
My roommate and I run a fun, casual blog. We recently bartered ad space with a screen printer. In return for the ad space, he printed shirts for us! It was an easy deal.
-Christian L. @ Smart Military Money
I have a friend who is a business owner and he has many customers who pay for his services by bartering. He has received all kinds of things in lieu of payment including seafood, gift certificates at restaurants and many other neat things. It seems to work really well for him and his customers must like the fact that they can offer a product or service rather than just cash.