Is Internet Bartering Right for Your Business?

Do you have extra stock or unbilled hours onaround the clock! So now if you want to trade
your hands? Would you like to turn it intothose spare umbrellas for a hotel stay in Sydney,
corporate gifts, travel, or services for yourAustralia during a conference, you can!
business? Well you can - quickly and easily - withWhat kinds of businesses benefit most?
the help of Internet-based barter networks. But isBartering works best when your business is
it really the best option for you?margin-driven - when you sell services or specialty
What is bartering?items where production costs are a (relatively)
Small business owners barter all the time. It'slow percentage of the ticket price. You'll do much
simple to make an exchange of copywriting skillsbetter than businesses that rely on turning large
for web design, or bookkeeping services for radioquantities of stock at a smaller profit margin.
airtime, and it happens on a daily basis.Other types of businesses that benefit from
But what if you have something that Jamesbartering are those with a strict production
needs for his business and you don't currentlyschedule. They often go to market with unmet
require his services? Well, you can look for a thirdpotential (unsold ad space or unfilled airline seats,
person who has something you are interested in,for example) and can use bartering to turn that
and who does need James' time, or you can bankwaste into something they need. Same with
his hours for later, but after a while keeping trackknowledge-based services; you can't recoup lost
gets complicated.hours. Once they have passed, that's it.
And don't forget the tax manWhy does it work better for these businesses?
In Canada there are strict rules around tradingBarter exchanges typically charge 5 - 7% on a
your labour or stock. When you own the business,transaction, plus an initiation fee that can range
all bartered goods and services must be claimedfrom $160 - $595. Some charge a monthly fee
as "capital gains". You have to claim the value ofon top of that. If your margins are low,
the item bartered as if you sold them to aexchanging your goods for an equivalent amount
stranger. Additionally, you are responsible forin products or services may not cover the cost
collecting and remitting any GST that would applyof the transaction.
to a cash sale of that amount.So when you have a surplus that you are
Internet bartering makes it easyconsidering deeply discounting, or you have unbilled
Not only does technology make it simple enoughhours on the books, don't sell them at a loss.
to track what has been exchanged, it also makesTrade them for something that will help you grow
it easy to find people who are looking for itemsyour business.
or who have surplus - around the globe and