Bartering
Bartering: Does it really work? The answer is…YES!
When you bring up bartering in a discussion, most people think of ancient times. They think it’s something people did long ago. It was a form of currency then.
Well, now in tough economic times bartering is popular again. I’ve been bartering for 23 years! In 1986, when I went to work for a small training company in Scottsdale, AZ., I was in outside sales, on straight commission and had to pay my own expenses. I bartered for everything because I didn’t have much money. I traded tickets to our sales training seminars and my customized training programs, for all kinds of services. I bartered (traded) for cell phones, health club memberships, apartment housing, rental cars and even auto repairs.
Technically, the IRS considers bartering taxable income if it’s not an equivalent trade. So make sure every barter or trade is an equivalent transaction! Exchange invoices if you feel the need to. Don’t be afraid to discount your service to match the value of what you receive if necessary. Even if you have to pay the tax, it’s less expensive than paying in full for the product or service you are trading for.
So in tough economic times, learn to trade (or barter) your skills. Whatever skill you have, use it. Offer to trade your skill or product, for theirs. I recently traded one of my skills for a new vacuum cleaner. It works. You just have to ask and not be afraid. A lot more bartering goes on than you probably know. The media certainly doesn’t report much about it and in general people don’t talk about it, but I will here. They key is that you need a skill or product that is appealing to people. Even if it’s a hobby you’ve perfected, it’s worth something, you can trade it!
I think it’s a primary skill to learn if you’re going to be a modern day preparer and you’re interested in a more self sufficient lifestyle. It’s a skill that can really pay off in tough times. Whether things break down at home and a typical family disaster strikes (like losing your job) or even if a broader scale tragedy hits, you can use your bartering skills to provide a lot for you and your family.
Even in good times, use it. Why not? Save money whenever you can. Build for the future whether times are good or bad.
Read these articles about people today who have traded (bartered) for computers, travel, Christmas gifts and even web page designing.
http://www.usatoday.com/tech/webguide/internetlife/2009-02-25-barter_N.htm
http://www.cnn.com/2008/LIVING/wayoflife/09/02/bartering.rise/index.html
There are even websites focused solely on bartering (or trading.) One of them is www.SwapThing.com, which lists almost 3.5 million “things” available for trade. You can actually list the products or services you provide and search for the products and services you want and SwapThing.com will match you up. Another is www.Swapski.com
Experts aren’t surprised Americans are becoming more financially creative during an economic downturn.
Dealing with the economy…
• 67 percent of consumers have haggled price in recent months, compared with 33 percent in 2006
• 61 percent of consumers now regularly use a shopping list, compared with 35 percent last fall
• 70 percent of shoppers now look primarily for “the deal” in the Sunday inserts, compared with 51 percent last fall
Source: America’s Research Group
“Historically, when times get tough, you see a 50 percent-plus increase in bartering as a way for people to be able to buy things or get things and do it economically,” said C. Britt Beemer, chairman of America’s Research Group.
The company talks with thousands of consumers every week to gauge their spending habits and attitudes.
A couple of years ago, many Americans had $500 to spend at the end of the month, but that money has evaporated because of rising prices, Beemer said.
“We’ve never had a time, at least in my lifetime, where you have food and fuel going up at the same time. So it isn’t a question of buying things, it’s a question of buying nothing,” Beemer said.
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So become a survivor and start bartering. It’s time to make an old skill become new again.
If you have any personal experiences with bartering please comment here on this article or join our forum.
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Bob Mayne, Editor
Strengthen your resolve…
P.S. you may not always agree with everything we present, but that’s OK. We actually encourage other opinions! Just bring facts to back it up and let’s hear them. This is a community for all walks of life. Thank you.
Technically, the IRS considers bartering taxable income if it’s not an equivalent trade. So make sure every barter or trade is an equivalent transaction! Exchange invoices if you feel the need to. Don’t be afraid to discount your service to match the value of what you receive if necessary. Even if you have to pay the tax, it’s less expensive than paying in full for the product or service you are trading for.
If this is the paragraph you are referring to, in the United States, the value of what you are trading is considered income or revenue, if the value is higher than the value of the product or service you are trading.
I don’t get it, what do you mean by the 3rd paragraph?
Hi, interest post. I’ll write you later about few questions!
Hi, http://www.todayssurvival.com to GoogleReader!
Have a nice day
Elcoj
I needed a cell phone charger today and because of this article I decided to try it. I talked the guy at the kiosk down 3 bucks. I am going to employ barter and negotiation more often !
I use http://www.barterquest.com to barter! It’s an amazing site, you can swap there almost everything: goods, services and even real estate!