Bartering is trading what you have (or what you have too much of) for products and services you need. Bartering is becoming more popular, especially in the past year. Craigslist has seen a big increase in barter trades. According to reports, use of its bartering section rocketed up more than 100 percent in 2009.

One-on-one bartering is a common business practice, but that’s typically limited to wanting what the other business has and vice versa. By joining a trade exchange, businesses can select from a wide range of available services. Professional barter exchanges like ITEX add 21st century sensibilities to the simple idea.

Barter exchanges enable members to offer products or services for exchange credits. Members use these credits as a form of currency to acquire products or services. A graphic artist might design a brochure for a flower shop in exchange for trade dollars, and then spend those to have his teeth cleaned. The exchange receives a commission for sales and purchases made.

Fans of bartering include it as a part of doing business. As business owners continue to look for ways to survive the down economy, barter is a great method and a powerful tool.

While cash will always be king, bartering can be a knight in shining armor, helping cash-conscious businesses to stimulate sales, develop new clients and convert excess inventory into barter dollars that allow them to acquire the goods, services — and often the personal benefits — necessary to keep them happy, all without spending a single penny.

Tens of thousands of small businesses, mid-sized companies, and large corporations barter every day. The beauty of the idea is that it can apply to almost all businesses, from advertising agencies and attorneys to doctors, plumbers and hotels, restaurants and gift shops.

Save Cash – Because of a slower economy, many business owners are not able to make the cash they used to make. Although low on cash, most have products and services to offer in exchange for something in return. Barter offers an alternative currency that can really help stretch out cash flow and make it go a lot farther, especially in tougher times.

A brisk barter trade can also strengthen the financial position of a small to medium-sized business. It’s essentially a bank account, just with another kind of currency. So it can make a difference when they go to the bank looking for financing to grow their business even more. That’s really a win-win situation.

The list of products and services is long and varied. Businesses barter everything from design, dental, plumbing, printing, fencing, cleaning, computers, phone systems, advertising, office furniture, and more.

Advertising & Marketing – Because small business biz is slow, people need marketing and advertising to make money. But they don’t really have the budget for it, so if they can exchange a good or service for promotional support, it makes sense. It gives businesses a leg up on their competitors to trade for graphic design, printing, advertising, banners, promotional products, anything that help attract business. Many businesses trade for gift certificates that can be given to clients who can bring repeat business or sing the company’s praises to friends and family. It’s another way to set yourself apart without taking on extra expense.

Employee Benefits – Many business owners have a hard time finding and retaining quality employees. They simply don’t have the cash right now to offer higher salaries and bonuses. Savvy business owners use barter dollars to promote employee relations by offering workers additional incentives like dental services, gym memberships, chiropractic, massage, eye care, car details, restaurant gift certs, overnight stays, oil changes, etc. Some even award employees bonus bucks that can be spent at the employee store stocked with products and services available through ITEX!

Attracting New Business and Market Shares – New clients will drive out of their way to come to you simply because you accept a barter currency!

This is new business over and above what you are currently attracting and business you probably would not get normally. Those new clients will refer you to family, friends and other businesses just like cash clients do!

Moving Excess Inventory or Capacity – Many businesses have excess inventory taking up space. They will often mark down the prices to 75% off just to get rid of it. Barter offers another solution. These products can be sold at retail through the barter exchange and turned into items you are paying cash for now.

Same with excess capacity – We take something that you have, that is sometimes not readily marketable and trade it for something you can use to reduce your cash costs or improve your quality of life. The concept is particularly attractive to hotels, restaurants and professionals with empty appointment slots. If a room is not rented or a table isn’t filled, that sale vanishes at midnight.

Have Some Fun!!!! – When times are tough, splurging on cool things that increase the quality of life tend to drop by the wayside. Not so with barter members. Whether it’s taking your family out to a nice dinner or movie, having an overnight getaway at a bed & breakfast or taking a week in Hawaii, there are so many options. I, myself, am going to a resort in Manhattan in May. This was not a trip I planned but when I can stay in an upscale place one block from Central Park for a week using trade, coming up with cash for airfare and food is much more viable.

How To Pick An Exchange

In the 1980s and 1990s, exchanges kept popping up as the concept of bartering remained in the news. When the dust settled, however, only larger exchanges such as ITEX remained viable.

Size Matters – Find out how many members are on a barter exchange before signing up. The more users there are, the better it will work to get you what you want when you need it. Ask the exchange for three or four members who can provide a reference. How many members does it have this year compared with last year? If it has a low number, it may be a bad sign. Also, find out if members are just accumulating or if they are spending their barter credits. A good exchange is one that has active members. Make certain the exchange issues proper documentation for income tax reporting.

Consider Geography – Nearly 80% of all barter transactions take place within the same geographic community, so it behooves you to sign up with an exchange near where you live. Find out if the exchange has reciprocal arrangements with other exchanges, including ones that may be out of state, which can broaden the selection of products and services you have to choose from.

Shop Around Cialis Professional – A good barter exchange is one that has strict policies that prevent bad business practices, such as price gouging and bait and switch tactics. The exchange should have well-defined penalties for violators and enforce its rules.

Know Your Limits – The Kamagra Gold maximum amount of trade a business should do is 10% – 15% of its total gross sales. In return, the exchange should help you offset 10% – 15% of your cash expenses.

Watch For Tax Implications – Barter transactions might be cashless, but they offer no tax advantages. The IRS considers the fair market retail value of a barter transaction to be taxable as income. Barter exchanges are required to provide participating businesses with a special tax form for reporting barter transactions (called the 1099-B). Also, if you barter to acquire items for personal use or to give to employees, the value of the items may need to be declared as personal income. Be sure to check with is generic viagra safe a professional tax advisor for help.

Do Your Homework – Do some due diligence before entering into a transaction; to be sure you are getting a fair value in exchange for what you are offering. Otherwise, you may be trading something that is worth a lot more than what you will get in return. Shop around first. Know how much that camera is really worth. Maybe it has a defect that everyone knows about.

How Does ITEX Measure Up?

ITEX is the largest business-to-business barter company in North America with 25,000 members nationwide and growing everyday. We have 95 offices coast-to-coast. We do $15 million in trade EVERY MONTH! We are a publically traded company so all of our financial data is available at any time. As a local franchise owner, I fall under the same financial reporting guidelines.

Trade exchanges have come and gone but ITEX has been in business going on 27 years. I can’t tell you how many stories I have heard about local exchanges that did not make it and have gone out of business leaving the business members high and dry. We have also learned how barter is best used by the local business owner to save cash and get new business.

ITEX is the only barter company with an advertising co-op that allows you to advertise at half the cost! We also offer a line of credit allowing you to test the system out without risk.

Barter is Simply Smarter! Please contact me to get started today.

Author Bio: Tinamarie Fowler, ILB
ITEX, Your Utah Barter Connection
I really enjoy connecting my clients to each other and helping them however I can.
Utah Barter
Utah ITEX
801.866.0324

Category: Business/Advertising
Keywords: utah itex, utah barter, utah trade, ogden utah itex