Bartering is a medium in which goods or services are exchanged for other goods and/or services without use of money. Bartering has grown in popularity today with consumers and businesses realizing that it’s a very creative way to lower expenses. It certainly isn’t something new; bartering has been around for a very long time. It’s [...]
Have you ever exchanged a lunch box at school or a baseball card in the playground as a child? Or a bowl of your special clam sauce for your neighbor’s apple pie? Or mowed your friend’s lawn in exchange if he repaired your car? Those were barters.
Most businesses suffer from the issue of bad debts (accounts receivable that will most likely remain uncollectible and will be written off). These debts appear as an expense on the company’s income statement, thus reducing net income and most companies make a bad debt allowance since it is unlikely that all of their debtors will pay them in full.
People generally believe that barter is an old world concept. This, however, is simply not true. Barter as a monetary system has existed in our world since ancient times and holds as much significance and practicality in society today as it did thousands of years ago. A fine example of barter is the Swiss WIR. [...]
Corporate Trade refers to one of the three major market segments of the barter industry with its primary focus being larger, one-off transactions. Differing from the retail and community currency barter segments; corporate barter exchanges typically use media / advertising outlets as leverage. A typical transaction goes something like this: Company A has an overstock [...]
Barter marketing versus cash marketing…. The question as to why one should enter a barter network can be answered by doing a quick comparison between the cost of getting a new customer in the cash market versus the cost of getting a customer via a barter exchange / commerce network. When you enter a barter [...]
Trading between nations has been happening since time began. In ancient time nations traded silk, spices, cloth and animals of all kinds. Today nation trade food items, defense equipment, metals, electronics etc. The products might have changed but the basic concept is still the same as the underlining need which brings together two nations in [...]
When people preach barter to businesses or individuals as a method to reduce their expenses people generally think “why”? I mean, why would they prefer to buy stuff using barter dollars than in cash? Why would somebody pay the expenses of running their business through barter dollars than the cash ones? I know because that [...]
Whenever a successful business man enters any new deal the first question he or she asks is what will be cost or expense of entering this deal. Same is the case with the people entering a barter deal. They have the question in their minds as what will be the cost of entering the barter [...]
Like every business transaction barter exchange too has some risks involved with it. Before entering barter deals it’s important to analyze the risks involved along with the benefits for both parties. Imbalance in trade: there is a possibility of imbalance between what you trade and what you get in exchange. As different products and services [...]
