Bartering System 101: How does it affect our daily negotiations on goods and services?

BARTERING
BARTERING | Source

Terms we should know about Bartering

  1. 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.
  2. 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.
  3. Barter can be an exchange of  goods-for-goods. Oil payments for arms is the widespread form of barter in Persian Gulf.
  4. 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.
  5. 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.
  6. 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.
  7. 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.

  1. 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.
  2. 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. 
  3.  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.
  4. 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.
  5. 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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The New Age Of Bartering c/o CBS

Bartering: The Last Option?

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Comments 18 comments

sameerk profile image

sameerk 5 years ago from India

nice hub , very good


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

Thanks, sameerk. But we have to be careful when bartering online. We can't expect the best of shared goods unless we were actually holding it or already delivered infront of our door.


Sandyspider profile image

Sandyspider 5 years ago from Wisconsin, USA

I think bartering can be a good system. Thanks for explaining this.


Simone Smith profile image

Simone Smith 5 years ago from San Francisco

Bartering rocks! I do it all the time - and it's a fun way to be social when shopping/doing things, too! Great Hub - and I love the photos!


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

@Sandy: That's the oldest way to negotiate in exchange of other goods and services without using money. Even in Biblical times, I think. Thanks!


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

@Simone: Thanks for the appreciation. I hope this would please HP staff, too! LOL!!!!


Bart Abaya 5 years ago

Please.find enclosed the feasibility of our business system and how it can help us mutually.

It is estimated that over 350,000 businesses in the United States are involved in barter exchange activities. There are approximately 400 commercial and corporate barter companies serving all parts of the world. (http://en.wikipedia.org/wiki/Barter)

Barter Exchange (BEX) pioneers in bringing to the Philippines this multi-billion dollar industry – bartering or trade exchange. BEX provide business-to-business Barter solutions for small to large-scale enterprises. Founded by entrepreneurs with over a decade of experience in business consultation and development, BEX aims to introduce and bring to good use this powerful tool for companies with available products and services, with focus on maximizing production efficiency by increasing the rate of inventory turn-over.

So how does it work?

A Barter trade exchange allows you to buy and sell products & services using Trade money, instead of cash.

How does that work for you?

Most businesses who will join a barter trade exchange have excess products or services they can sell. For example, if you are a media company you might have Ads or airtime you can sell

or a restaurant which might not be able to keep the restaurant full all the time. By joining a barter trade exchange you can attract 'trade member' customers to your restaurant. They in turn bring their 'cash paying' friends and business associates. A 'win - win' situation for you.

How do I spend my BEX Trade money?

A common misconception is that you have to trade whatever you have for something in particular you want and if the seller doesn't have exactly what you're looking for, it doesn't really work.

A Barter Trade exchange solves that problem!

When you sell your product or service to another member, you get 'trade money' (BEX Trade money) in return. These go into your trade account. You can then spend your BEX money on whatever you want! And whenever you want it.

Get new customers:

BEX has over 100 members from SMEs and corporates in Philippines few of them big business associations as big as 3000 to 30000 businesses that would buy from other BEX members.

Attract new cash paying customers:

Often times BEX members will bring their friends and associates along with them, to a restaurant for example. They become cash paying customers you wouldn't otherwise have had.

Spend your BEX Trade money, Save your cash:

Cash is King, but BEX Trade money is Queen! If you can't sell your excess products or services for cash, sell them for BEX Trade money! Then spend your BEX Trade money on what you need, like bookkeeping, printing, and advertising; or on what you want, like a vacation to Boracay or Taj Mahal, jewelry, or an appointment with the doctor.

At BEX we are 'high touch with high tech'. When you sign up for membership, a BEX representative will call you to give you that high touch customer service we are committed to. If you're a high tech type we have designed a web site just for you, if you have questions and want to talk with someone right at your convenience.

WHY TO JOIN BARTER EXCHANGE (BEX)

Avail products and services without spending cash!

Instead of buying the things you need and want with cash, BEX MEMBERS make purchases with BEX Trade money- earned by selling their products and services, excess inventory or capacity to other BEX Members.

Do you run ads? Do you send brochures or other marketing material? Need to hire a consultant, accountant or an attorney? Do you need office equipment serviced? With BEX, you can acquire all of these services using BEX Trade money.

That's just the beginning! Want to take your customers or staff to lunch or dinner? Do you need a hotel room, a vacation or just a massage? Thousands of items can be purchased with BEX Trade money.

Sell products and services to new customers!

Sell your products and services to a growing network of BEX Members who need what you have. This is a great way to open new markets, build new relationships, and grow your business.

We will help you sell your products and services on the BEX website online or offline directly to other members. We are not just a marketplace/exchange; we have a network of professionals to help you maximize the value of your BEX membership.

Access to experienced local Trade Coordinators that facilitate transactions!

Local Trade Coordinators act like a sales force promoting your products and services to an expanding network of new customers, both online and offline.

Trade Coordinators assist members in locating items to purchase for their business or personal needs.

Trade Coordinators will do most of the work for you, freeing up valuable time to focus on your business.

We do all the work for you!

ü BEX provides you with a variety of resources so you can focus on growing your business.

ü We take care of the record keeping so you don't get bogged down with details

ü Free customer support

ü Access to our private membership directory for FREE

ü Marketing your products and services

ü Access your account information, anywhere and anytime, using our easy-to-use Web site

Mix business and pleasure!

ü You're not limited to using your BEX membership just for your business. You can use your BEX Trade money to purchase all kinds of products and services to improve your quality of life - from restaurants, resorts, jewelry, clothing, cars, trips, dentistry, medical services and much more.

Should you wish to discuss this further or should you wish to confirm your membership, please contact us at (632) 4942723 / 09175438899 or email us barter.trader@yahoo.com

It would be a privilege for us to have you as one of the prime member to our business exchange. We look forward to a mutually beneficial partnership with you. MEMBERSHIP IS FREE< JOIN US>>

Thanks and Best Regards.

Mr Bart Abaya

website http://www.swappingcorner.biz

email barter.trader@yahoo.com


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

Thanks for the invite, Bart. I already requested on your FB account to join your group. I'll be perusing your site in due time.


bartertrader 5 years ago from mandaluyong

How BarterEXchange (BEX) Works for you as: (our website is still under construction)

Professionals?

You can purchase many products or services, for which you now pay cash to get.

If the professionals is in the BarterEXchange (BEX) network they can buy any products or services like yellow pages ads, printing of visiting cards or brochures, web designing or anything that is required for running their business or even plan a family holiday. They don't pay cash for the same instead they shall trade their services for the same to any of the members in the BarterEXchange (BEX) network as an when required by any of the members.

By doing this the professionals saves on cash and also gets his desired products or services and in return the professionals just has to provide the equivalent amount of his services to the members who requires the services, thus adding on new customers and saving cash too.

Hotel Industry

Having 100% occupancy rate is a dream come true for hotel owners. Over and above that overheads are built in, you have to pay rent, staff salaries regardless of whether the rooms are filled or empty.

You can now minimize this issue by saving cash and still buying products or services required for your business, by joining BarterEXchange (BEX).

Hotels can join the network and start buying products or services like Bedsheets, Hotel equipments, cutlery, any form of advertising mediums, anything that the hotel requires for running the business without paying cash and in return can trade their rooms or other services like catering, Banquets to the BarterEXchange (BEX) members who require them, there by adding on new customers and saving cash too.

Advertising Companies

Today in recession times all the advertising companies are suffering on their ad revenues. Its being difficult to squeeze budgets from the existing customers also. In such cases the companies start job cuts, decreasing salaries and also cost cutting in many other aspects.

By joining BarterEXchange (BEX) you can now minimize this issue by saving cash and still buying products or services required for your business without any worries.

The Advertising Companies can join the BarterEXchange (BEX) networks and start buying products and services like Vending Machines, Mineral Water, Promotional Items, Office stationery etc anything that the company requires for running the business without paying cash and in return can trade their advertising space to the BarterEXchange (BEX) members who require it. There by adding on new customers and saving cash too.

Wholesalers

Wholesalers have a double spread when it comes to trading. In the cash world the wholesaler buys at factory price and sells at wholesale price to the retailer. But when using BarterEXchange (BEX) and its trading system the wholesaler buys at factory price and sells at retail. Any wholesaler is well suited to make barter a profitable side of their business. If the wholesaler offers inventory items to his BarterEXchange (BEX) customers at retail to end use consumers, he enjoys a double spread since his “wholesale cost” of product is actually the factory price. Many wholesalers, by following the trading strategies developed by BarterEXchange (BEX) are in a position to acquire on trade very high ticket items such as delivery vans, cars, or even real estate.

Once we fully grasp the fact that BarterEXchange(BEX) trading is entirely new business and not a substitute for cash business, we will realize its phenomenal power. There by adding on new customers and saving cash too

Manufacturers

Manufacturers have a triple spread when it comes to trading . In the cash world you sell to a wholesaler who in turn sells to the retailer who then sells to the consumer. But when using BarterEXchange (BEX) the manufacturer sells at retail and enjoys the maximum advantage. When a manufacturer offers inventory items to his BarterEXchange (BEX) traders at retail, he enjoys a triple spread. Many manufacturers, by following the trading strategies developed in BarterEXchange (BEX) are in a position to acquire on trade very high ticket items such as delivery vans, cars, or even real estate. A manufacturer's cost of producing “one more product,” often is virtually zero since the big cost factor — overhead — is incurred whether or not the additional item is produced or not and thus, in trade, should not be considered. In trading, the cost of product is determined as how much additional cash will have to be spent to produce the item.

Once we fully grasp the fact that BarterEXchange (BEX) trading is entirely new business using vanishing inventories, and not a replacement for cash business, we will realize its phenomenal power. There by adding on new customers and saving cash too.

Web Design Companies

In today's scenario lot of companies have put off developing a Website for long enough. In today's business, and the stiff competition on the Internet, its mandatory to have a solid Web presence - in order to do business in the electronic age. But due to current market scenario this becomes a last priority for a business.

By joining a BarterEXchange (BEX) network you not only give your customers an opportunity to come to you without paying cash.

By joining the network your customers would avail your services and in return would trade their products and services to the BarterEXchange (BEX) network members. Thereby you getting new customers without paying cash.

Travel Industry

In this times of recession lot of corporate companies have started cutting down on cost for travels as it’s a lot of immediate cash flow involved. Thus compelling the travel industry to cut down on cost like manpower, advertising, and other relevant expenses.

By joining BarterEXchange (BEX) you can now minimize this issue by saving cash and still buying products or services required for your business without any worries.

By being a Member with BarterEXchange (BEX) you can buy lots of products and services that are essential to do your business like advertising in news papers, radio, Hoardings or any other mediums, Office stationery, office equipments or any products and services that you require and in return you can offer the same value worth your services like air tickets, tours, organizing conferences etc.

There by you don’t only save cash but also gain new customers.

B2B Industry

In this times of recession lot of companies have started cutting down on cost, especially marketing costs.

By being a Member with BarterEXchange (BEX) you can buy lots of products and services that are essential to do your business like advertising in news papers, radio, Hoardings or any other mediums, Office stationery, office equipments, raw materials or any products and services that you require and in return you can offer your products and services worth the same value.

There by you don’t only save cash but also gain new customers.

JOIN US< NO MEMBERSHIP FEE:

website http://www.swappingcorner.biz email barter.trader@yahoo.com


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

Great suggestions, again. I hope this could generate new members on your site. I already 'liked' your site on Facebook and signed up for future favors. Thanks again!!!


Bart Abaya, Barter Exchange Philippines 5 years ago

Barter Philippines,BEX...We introduce the new system of bartering that is being practice now worldwide...

In the United States barter is a $6 billion industry. The majority of this business is done through local area barter exchanges scattered throughout the country.

Barter allows businesses to buy the goods and services they need - without spending cash. In a barter exchange the business members buy what they need and pay for it with what they have. The barter exchange is the third-party record keeper. The exchange helps the transactions to happen and creates a currency system so that trades do not have to be direct or one-to-one.

Bartering allows a business to make purchases it would otherwise not have been able to make if the business had to spend cash. If your company has excess inventory, extra time, space or services, barter is an excellent way to move those goods or services. Barter brings new customers and additional income that can be spent with other barter members to conserve cash.

A Barter Exchange serves as third-party record keeper - (similar to a bank recording system of debit credit). Barter exchanges use a currency called barter money or trade credits (1 trade credit = 1 peso). Businesses buy and sell in the network using barter money or trade credits .

For additional information: BEX Barter exchange Philippines email barter.trader@yahoo.com

Note: Accreditation/Membership/Posting your ADS is FREE (http://www.barterphilippines.blogspot.com/)


thesailor profile image

thesailor 5 years ago from Seven Seas

Bartering needs no money! This is a very good system. With talents overflowing these days and unsold products, too; a wise man can utilize his spare time and do it!


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

Thanks, Bart, for this vast ideas on how Bartering works. I'm sure someone out there has an interest to try this type of deal.

Good luck to them!!!


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

@thesailor: You're so right. The demands of talents exceed the job items that are available.

Maybe those young professionals can experience bartering their talents before landing a regular job.


Sinbadsailorman profile image

Sinbadsailorman 5 years ago from Valparaiso, Indiana

travel_man1971 this is a great Hub! I enjoyed immensely now then if we could get the IRS to leave US alone as we trade amongst one another for our goods and services Wow! But I think we both know that ainta gona Happen LOL tuff times require we all get a little bit more original with our dealings. Nice Job well done travel_man1971.

Donnie/ Sinbad the Sailor Man


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

@Sinbadsailorman: Good point you have here, Donnie. Bartering is being practiced at the southern part of the Philippines (exchange of goods). It does happened here in my country. It can be talents in exchange of goods or vice versa.


Bart Abaya, Barter Exchange Philippines 5 years ago

Welcome to BEX Barter EXchange Philippines....We promote your products NOT IN CASH..

Barter saves cash, increases profits, and decreases the cost of doing business.

What are the goals of every business? Increase your sales by driving more customers to your business. And, decrease the costs involved in doing business. Combined, your business is far more profitable.

What’s the easiest way to increase revenue and decrease costs?

Through bartering the goods and services you currently have. By bartering, you can buy the goods and services you need WITHOUT SPENDING CASH.

Trade what you have to get what you need

Save Cash and Increase Profits

More Sales from New Customers

Use your Barter Credits (trade money) instead of cash

Save your cash. Find new customers or clients. When you barter with BEX Barter EXchange Philippines you can turn excess inventory or down time directly into barter credits (trade money). You can use those Barter Credits (trade money) with any other member or choose to work with other businesses throughout the BEX network. Don't spend cash - use barter instead. BE A BEX Barter MEMBER , NO membership FEE...

For any Information:

BEX Barter EXchange Philippines

1014 Shaw tower, Shaw Boulevard, Mandaluyong city

Tel 4942723 globe 09175438899


travel_man1971 profile image

travel_man1971 5 years ago from Bicol, Philippines Author

@Bart Abaya: Thanks for posting this again.

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