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Barter Items Traded Can Expand Your Business

by Terry Lamb

When humans first created communities, barter was an integral part of their economic system. Trading food for services or non-food items was the main form of economic activity. Barter activity evolved into our modern monetary system when small, valuable barter items began to be used as a way to get the items and services needed without using cash.

The internet is what may have reintroduced bartering back into our economic systems. The internet is capable of connecting an infiniate number of traders where the loss of physical marketplaces once hampered the barter system. Now anyone with barter items can just list them and what they want in return on the internet and just wait until they are contacted by someone interested in the trade.

Despite the possibilities offered by a nearly limitless number of trade partners offered by a global internet, however, local barter networks provide the best market for barter items. Bartering locally reduces the costs involved in trading, primarily transportation. While that Sacramento trader might love to give you his scooter for your grandmother's armoire, you're in Boston and the cost of transporting all the items involved makes the savings from bartering disappear.

Using a local network for your barter items also has the advantage of providing reassurance that you're not going to be cheated. Your exchange can take place in person, with both parties given time to examine the goods they're exchanging, thus allowing a reluctant partner to back out without a total loss. You may also have an easier time verifying that your trading partner is allowed to trade what they're trading, or licensed to provide the service they're providing.

Bartering isn't only helpful for individuals. Businesses can also enjoy profits from becoming part of a local barter network. When trading services such as design and accounting business to business you may, especially with small businesses, even be able to save money. It is also an interesting and cheaper way for new businesses to advertise locally by using barter to get the name of the business out into public awareness.

In a nutshell, what was old is now new, including the art of bartering, which is the most ancient of economic orders. The exchange of barter items may be the answer to your needs, regardless of whether you are tidying up your garage, trying to swap newly picked vegetables for childcare services, or hoping to increase public awareness of your small business.

When humans first created communities, barter was an integral part of their economic system. Trading food for services or non-food items was the main form of economic activity. Barter activity evolved into our modern monetary system when small, valuable barter items began to be used as a way to get the goods and services needed without using cash. In short, everything old is new again, and that includes barter, the oldest economic system of them all. Whether you are cleaning out your garage, trying to trade babysitting time for fresh produce, or looking to raise the profile of your small business, trading could be the solution.

Published June 24th, 2008

Filed in Business, Finance