Bartering System 101: How does it affect our daily negotiations on goods and services?
Terms we should know about Bartering
- Bartering is a medium in which goods or services are directly exchanged for other goods and services without a medium of exchange or money. It can be a multilateral agreement between developed countries or with thirld world countries. For example, one developed country uses its technology to build utilities in mining crude oil in the Middle East. In exchange, they will get the crude oil and petroleum products in exchange of the help they've rendered to the developing nation.
- Barter is another word for trade. In the olden times, when money was not readily available, people from other tribe or settlers would trade with one another for the things they needed. A hunter will trade for his catch with goods from the local businessman.
- Barter can be an exchange of goods-for-goods. Oil payments for arms is the widespread form of barter in Persian Gulf.
- Barter can be an exchange of unsold avertising time on radio, TV and newspapers for products and services. During my radio days, the management will promote the business' specialty in exchange of goods and services. A beauty parlor will advertise on the radio with promo period on its captive clients. Or some concert tickets will be given free in exchange of the forthcoming event.
- Barter can be trading-in of an old but functioning electronic gadget in exchange of the new version. Some electronic companies will do this during their opening to draw more customers. My father did exchange his old but reliable phonograph for the new and improved version without paying money.
- Barter still happens here in the Philippines. Fish vendors roaming the main street of our place will exchange their catch for a kilo of rice. A kilo of vegetables in exchange for a kilo of rice.
- Bartering happens in the family. Let's remember similar sentences like these and those who said it:
- "I'll rake the dry leaves on the backyard if you'll wash my clothes."
- "I cooked our meal already and eaten it. Please wash the dishes, kiddo."
- "I'll wash your car, if you'll fix the water pipeline in the kitchen."
- "I'll clean the room if you'll help me with my assignment."
- "I'll cook lots of pancakes, if you'll arrange your toys."
- "I'll give you a massage, if you'll hug and kiss me."
Whether it's complex or just simple things, a service or goods if exchange in mutual understanding without money involved is always bartering at different levels.
Bartering System in the World Today
Barter system dominates businesses online, at the corporate field and other places. It increases the sales. Many people will sell or buy online using the system in order get point for every sale.
- Networking groups will reward you points and commissions through goods and services. Points can be used to purchase with another product. An Avon dealer will accumulate points with the help of her sales agents.
- Most of the big malls today are offering credits or points that you can redeem once it accumulated as exchange for other goods and services. A saleslady will offer you an option to get a card for rewards. It's just like an ATM card that you can swipe if your cash is short and its time to redeem it.
- Your accumulated points on air miles can be used to pay for your next trip, say in the USA or other parts of the world. Here in the Philippines, the flag carrier Philippine Airlines always award an air mile card to its perennial passengers. It's the same with American Airlines, Lufthanza or KLM and other airlines.
- Bartering your time is becoming popular today through "Time Banking". You can apply your expertise as a computer programmer in exchange of goods and services.
- Bartering Web sites are increasing day by day, where you can swap your goods or services for another goods and services.
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