Save Cash When You Barter

August 4, 2009

Bartering is trading goods or services without exchanging money.

We love bartering! In fact many times I’d rather barter than exchange money. I have been on a hand craft trading Yahoo group for years. I’ve traded my handiwork (crochet, quilts, marshmallow guns, etc…) for all sorts of things, jewelry, Mary Kay, other handiwork items. 

A few years ago my friend held a "swap" just before Christmas season. A bunch of ladies got together to bring items that we would barter for. There were baked goods, mixes in a jar, jewelry, handiwork items, and some brought really nice items from their home they were willing to part with. It was a great time, and of course we ate supper together!

From that swap, one lady wanted to barter with me for one of my crocheted name doilies. Her name doily would have cost her $45 cash from me. She had an unpriced, like new, surround sound system on her table. She was thrilled to do an even exchange!!! That doily cost me about $1.00 to make, then about 6-8 hours of crocheting, which is so relaxing for me! This is one of my favorite bartering stories!!!

In a few weeks I will be getting together with another friend and we will be doing a huge batch of canning together. I have asked another friend who owns a commercial kitchen/HUGE GAS STOVE, if we could can on her stove, in exchange for canning her some produce. She eagerly said "YES!". So this is a great deal, I can get more done on this huge stove and have more work space than I would in my own home, and my friend will receive some good food for her pantry!

Bartering is a fairly easy thing to do, but there are some things to be cautious about:

*Not everyone is open to bartering so don’t be offended if your offer is refused.

*Don’t barter for items that you really do not want. Just kindly say that it is something you don’t need at the moment.

*Don’t assume anything. Be sure that both parties understand the trade completely, just as if you were trading with cash.

Here is a story about, Kyle MacDonald who traded one red paperclip for a house. It started with one red paperclip on July 12 2005 and 14 trades later, on July 12, 2006 he traded with the Town of Kipling Saskatchewan for a house located at 503 Main Street. You can read his story HERE!

Here are some good guidelines for bartering from the University of Illinois:

Don’t assume anything!

• Know who will supply needed materials. Usually it is the receiver; but the provider, in some cases, may have the needed tools, such as a lawn mower. When materials must be purchased, work together to determine specifics, cost limits, quality of materials, deadlines and other details that could become irritants.

• Don’t assume anything. Be sure to agree on the details of exactly what will be done. Be sure expectations are clear to all. In some cases a contract or written agreement may be a good idea.

When You Provide a Service

• Be sure you are clear on details of expected service.

• Don’t take on tasks that you cannot do well.

• Keep the receiver well-informed on your progress. Inform the receiver also of any problems or delays.

• Decide when the service is to be provided. If needed by a certain date, be sure you have enough time to do it.

• If you receive income from bartering, you may be required to pay taxes on this income. Refer to IRS Publication 525, Taxable and Nontaxable Income, for more information.

If You Receive a Service

• Carefully explain what you want and supervise the work. Don’t be caught with a completed job that is not what you expected.

• Don’t hesitate to check the provider’s qualifications.

• Make sure the delivery of service is convenient and within the time you want the work done.

• If the task requires your presence or help, make sure you are aware of this.

Here is a detailed explanation about bartering.

Blount County Barter - Our online bartering Yahoo group.

Handcrafter's Trading Yahoo Group

You can do a search for yahoo groups using the words barter or trade.

Topics: Money Management, Resourcefulness | 1 Comment »