| Long before banks, credit cards, and even cash, | | | | exchange can provide them. If it can't, look for |
| people bartered for goods and services. And | | | | another source. |
| though it's unlikely that your local supermarket will | | | | - Ask for and check referrals. Call several |
| accept a few hours of your labor in return for a | | | | members and find out how long they've been a |
| week's worth of groceries, there are still plenty of | | | | member of the exchange, what sort of bartering |
| opportunities for cash-free trading in today's | | | | they do, what they like and don't like about it, and |
| marketplace. The International Reciprocal Trade | | | | if they would do it again. |
| Association (IRTA) estimates that the total value | | | | - Find out how many clients are currently trading, |
| of goods and services exchanged every year by | | | | and how many are on standby or reserve, which |
| businesses through reciprocal means exceeds $7 | | | | means they are unwilling to take more barter |
| billion, and about 75 percent of that occurs | | | | business until they have spent the trade dollars |
| through commercial barter exchanges. | | | | they have accumulated. |
| Barter exchanges function almost like a cash-less | | | | - Check the barter prices to see if products and |
| bank for their members by tracking barter credits | | | | services are priced fairly and competitively. |
| and taking a small commission on each transaction. | | | | - Check the geographic coverage of the |
| Bartering is a business strategy that can be used | | | | exchange's client base, and the proximity of |
| to open new markets, win new customers, | | | | suppliers of goods and services you want. |
| reduce inventories, drive revenues, and increase | | | | - Ask if the company provides consulting service |
| profitability. | | | | on the use of barter, in addition to brokerage and |
| Keep in mind that not all barter exchanges are | | | | management services. |
| the same. If you're considering joining one, | | | | - Compare the barter contracts, costs and |
| consider these tips: | | | | services of several exchanges in order evaluate |
| - Treat your barter credits with the same | | | | the best deal for you. |
| respect you give "real" money; don't buy things | | | | - Remember that barter sales are taxable |
| on barter that you wouldn't buy with cash. Also, | | | | income; don't do business with anyone who |
| don't pay a higher price for something that you're | | | | promotes barter as a tax dodge. |
| purchasing with barter credits than you would if | | | | - Make the usual business reference checks on |
| you were paying cash. | | | | the barter exchange, such as the Better Business |
| - Be sure you can get what you need for your | | | | Bureau and Chamber of Commerce. Also find out |
| business from the exchange you join. Prepare a | | | | what professional associations, such as IRTA, the |
| list of your needs and wants, and find out if the | | | | exchange belongs to. |