Barter Is Great but Beware of the Snakes



Posted: Saturday, March 21, 2009

by
XYZ Barter

Lately there has been a lot of noise about the benefits of barter and due to our current economic situation there has been a rise is interest in bartering. The interest is not only for individuals but also for businesses engaging in barter.

For individuals there are several sites like uswap.com that focus on individual trading. It's a great concept and now a lot of businesses are getting onboard also. Finally they are starting to wake up and realize that "Hey I can save several thousand dollars and it's the same as if I'd actually made several thousand dollars." Go figure.

Bartering is an excellent way to conserve your cash and increase your bottom line. At the same time you need to be extremely careful with the barter exchange or trade exchange that you join. I hate to put it bluntly but some are just snakes and only out to make a quick buck. These can put a damper on the entire industry while there are many great exchanges out there. It's true of so many businesses but I'm writing this as a warning and a guide as to how to be smart about an exchange you join.

  1. Find out what the value of their Trade Dollar or Trade Credit is? This will be difficult before joining. One Trade Dollar/Trade Credit should be equal to one US Dollar. Of course the idea of barter is great but if their members prices are severely inflatedleave before doing any trading. You will end up paying more in trade than if you had dealt in cash.
  2. Not all brokers properly manage their members. For some it's all about money and not the integrity of its members. There are rules but if rules are not enforced for violators, it's meaningless.
  3. Shop around and compare prices. Transaction fees and sign up fees are common. However some charge monthly, quarterly, and or annual dues. Although they are legitimate charges, you may be able to get the same value with a performance-based exchange. These exchanges may charge a one-time sign up fee but thereafter only charge transaction fees when you trade. No trading, no fees. This way they only get paid when you benefit.
  4. Do the math. Know what your costs of goods are (not including overhead expenses as these are paid with our without barter). Then add the fees that are charged by the exchange. If you find that you are not saving much or spending more (especially in months if there is no trading, then you may want to look for a more feasible option.


Done correctly, barter trading can be fun and beneficial to your pockets. If you are new to barter as with anything, start slowly and work your way up. When you become savvier you will begin to look to trade for everything. It's like getting a steep discount on nearly everything you purchase. And the things you can't purchase with trade, you will have more money to pay for with all of the savings on the items you can. Imagine buying nearly everything at YOUR wholesale costs. And your transaction fees; think of them as a "thank you" to your exchange for saving you money.
Victoria Caldwell is a trade broker for XYZ Barter.com. XYZ Barter.com is a performance based barter exchange that enforces honesty and integrity in barter trade. 
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