Barter is in the news again…
I pulled this part of the article to illustrate a good point about the barter industry that I think we take for granted: the security you have when dealing with a reputable trade exchange.
3. Let the barterer beware. Craigslist doesn’t prescreen users. So if you’re looking to swap for a service you really need — such as baby-sitting — start by contacting friends and neighbors. Or try a site that verifies the addresses and phone numbers of its users, such as BarterBee.com. BarterBee lets you trade CDs, movies and video games free, and it will post a detailed description of your item for you. But, says Robert Alvin, BarterBee.com’s chief executive, be sure you know what your product or service is worth. “If you list it too high, it won’t move,” he says.
What You Need to Know About Bartering - Kiplinger.com
When you are dealing with complete strangers over the internet, like on Craigslist, you never know the quality of what you are going to get. I have in my browser sidebar a couple of RSS feeds from Craigslist for barter. I scan them daily, and every once in a while I may attempt to contact one of the posters to see if we can make a deal. Not so when I look at the member directory of the exchange I belong to.
One of the best things we have as exchange members is the knowledge that the exchange has our back. Usually, when someone ponies up some money to become a member of an exchange, they at least have that limited financial commitment to produce good products or services for the other members of the exchange. When you barter one on one, there is no commitment other than what people are telling you they will do.
Second, someone at your exchange has probably tried working with the other member you want to do business with, and can give you some very important advice and feedback about that other business.
Third, if a deal goes sour, and you are in the right, your exchange is going to work with you to see that you are made whole.
You get none of this when working one to one deals out in the world. It just doesn’t work like that. In a one to one barter you are at the mercy of the provider, and if something goes wrong the only thing you can effectively do to make things right is take them to court, which is expensive and costly, in more than just money.
I think trade exchanges should capitalize on this and use it in every conversation they have with potential members. If you aren’t touting your exchange’s ability to back up members in the instance of a problem with a barter deal, then you are missing one of the effective tools you could be using to help people to join your exchange.
I am bartering an emergency preparedness kit for flowers. How do I know that the value of the flowers is the same as the kit? Is bartering done at our cost? How do I know what their cost actually is?
Thanks.
Lynn, thanks for the comment. A barter can be done however both parties agree, either cost for cost, retail for retail, or item for item. In general, if you are going to barter long-term, a retail value for retail value measurement is most common. It gives both parties the extra barter leverage over their cash, and both feel more inclined to continue to do business.
As for checking on pricing, I would get a retail price list from who ever you are attempting a barter with. That way, you know what their published prices are and can go from that.
Either way, as long as both parties are happy with the end result, the numbers are almost irrelevant. Just make sure you get enough flowers so that you feel like you are getting equal value for the kits you are trading.
Does that make sense? Thanks again for the comment.