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.
Other Barter Tips from Fellow Hubbers
- Everything is Negotiable
As a rule of thumb, the sticker price on any item is not necessarily the final price. The marketplace has two prices, the visible price and the price the merchant is willing to take if you negotiate. In...
- Good Negotiation Tactics Can Save You Money
Many people hate negotiating but a few simple negotiation tactics can make it rewarding and fun! Get a better deal on your purchases or even negotiate a better pay deal, if you try to negotiate a better deal...
- How Barter Exchange Can Help your Business
Bartering is a highly useful tool whether you are a small or a growing business and can aid in preserving cash to expand business opportunities by means of additional advertising or investing in other raw...
- Salary Negotiation - Tips and Tactics
Some of us would rather dive into a muddy hole filled with chicken feces than negotiate a salary. Many people wait demurely for their boss to notice their great performance instead of straightforwardly asking...
- How to Lower Your Internet or Phone Bill with Qwest Negotiate with the Loyalty Department
Call Qwest and demand a lower rate on your phone or internet bill. If you have found yourself suffering from a higher internet or phone bill because a low introductory rate has expired, try negotiating a new...
The New Age Of Bartering c/o CBS
Bartering: The Last Option?
More by this Author
High school students are always interested in friendship during this stage of education. Making friends and creating groups are but some of their most anticipated pastime. However, some students can be very cautious in...
What will happen if your partner agrees with my 'unique' plan for a wedding? You can learn a thing or two with my suggestions. Just don't be mad at me because I always host or emcee weddings. Read on!
Aside from raising your own children, or just starting a family, why not indulge yourself into another interesting hobby: raising herds of ducks in your own home at your backyard? This will be suitable for you while...