How to Barter for Goods & Services – guide lines and Methods to Trade

How to Barter for Goods & Services

Have you ever had an item sitting in your home that’s just too good to discard, but you know you’ll never use it again? You can turn an old possession into something new by bartering.

Bartering is the process of obtaining goods or services by direct exchange without the use of currency. In times of economic instability or currency devaluation, it can be a great way to ensure the flow of necessary items and services into your household without using precious funds. Historically, face-to-face exchanges between familiar parties were most common, but the Internet has opened up a new medium for bartering opportunities for both person-to-person exchanges and third-party facilitated transactions.

Why Would You Want to Barter?

There are many reasons to participate in a barter. Due to the recent recession, many people have found themselves unemployed or with a limited cash flow, and bartering is a great way to attain products and services when times are tough.

You can use bartering to cut costs with your small business or to reduce personal expenses. For example, a handyman can trade services with a hairstylist. Each person is still getting paid for their work, in a sense, and it can lead to referrals to cash-carrying customers without costing a penny. However, the essence of bartering is simply to trade something you have for something you want or need – and you can do this whether you are struggling financially or have a steady income.

What Can Be Bartered?

Any good or service that is desired by another person can be bartered. From housecleaning and haircuts, to recliners and digital music players, bartering is limited only by your imagination.

In 2010, 17-year-old Steven Ortiz made national headlines by bartering a cell phone to start a series of trades that ultimately put him in the driver’s seat of a Porsche. Even healthcare isn’t out of reach: In 2011, Matthew Wagner of Connecticut was able to exchange his photography services for Lasik eye surgery through a barter exchange.

Here are some of the most popular items that can be bartered:

Personal Care Services

A quick perusal of Craigslist will offer haircuts, massages, tattoos, and a variety of personal care services for trade. Utilizing Craigslist can lead to regular trade arrangements and help build bartering relationships and skills, which can lead to future cash sales.

Technology
Technology lends itself to bartering, as even “old” technology is still highly usable and desirable for many people. Therefore, when a technology enthusiast decides to update his or her electronic product, the old version will be valuable to someone else in a trade.

For instance, each time Apple releases a new version of the iPhone, the second-hand market for older versions of the iPhone enjoys a flurry of activity. However, you do have to be as careful with the barter of used goods as you would be with the purchase of used goods. Be sure everything is in working order and shows no signs of significant damage.

Clothing
You may find it beneficial to coordinate a clothing exchange. Arrange with several people to each clean out your respective closets, and bring a minimum or preset amount of clothing to a “swap day,” wherein everyone sets out their clothing on a table and chooses from what’s available.

It’s best to create a random system so you don’t have a free-for-all. For instance, everyone picks a number out of a hat, and that determines the order in which they get to select an item. Set the rules for the swap in advance, and donate old clothing to charity.

Toys
Due to your children’s age or their waning interest, some toys may no longer be a hit. Create a toy exchange with other parents in your neighborhood so you can keep “new” toys coming to your children without incurring additional cost or adding to the landfill.

Gifts & Crafts
Especially prior to the Christmas holiday season, a gift and craft exchange can take the pinch out of your budget. Contact people within your network and arrange a day where people exchange homemade holiday decorations. You may not find everything you’re looking for, but you will likely find at least a few stocking stuffers – and the perfect price.

Bartering Methods

1. Face-to-Face

Occasionally, you may find bartering opportunities arise while you’re with a group of friends or acquaintances. For example, a family friend has a large property with chickens and an abundance of eggs. When I’m baking bread for my family, I always bake an extra loaf and trade it for any of their surplus.

Bartering with friends will often start informally. In our case, our friend was lamenting the possibility of the extra eggs spoiling, while at the same time relaying how much she loved my fresh-baked bread. My suggestion to trade eggs for bread was met with an enthusiastic response, and now we trade regularly.

You can even set up a barter group that allows multiple people to trade their wares and services. This is particularly handy during Christmas time and any other gift-giving season.

2. Online via the Internet

Sometimes you may have something to trade, but no one to trade with. However, the Internet has facilitated a unique system of bartering with strangers. There is no need for introductions through friends, as in most cases you can place a personalized ad describing what you have to offer, and what you seek in exchange.

However, it is important to always exercise caution when utilizing the Internet for bartering purposes. Not every bartering or swapping website, nor every person using these sites, are reputable or open to noncommercial traders.

Craigslist
Craigslist is well-known as a place to find a job, sell old stuff, or purchase furniture and other used goods, but it also has a section dedicated to barter options. To utilize this feature, you simply go through the same process you would to post any other job or item for sale, and it’s completely free.

While it may be free, there is no one monitoring the barter ads, so you must be aware of potential Craigslist scams, and realize that you are always at risk when it comes to meetups and exchanges. For example, about a year ago, I arranged to trade massage gift certificates for housecleaning. Since the individual was coming to my home, I was more nervous than usual. However, she offered good previous references, and we  arranged for a time to meet when my husband would be home, in case an odd, unexpected, or even dangerous situation arose.

You should always attempt to have an initial meeting in a public place, such as a local coffee shop. It’s also helpful to have someone with you. Just make sure you let the other person know someone will be accompanying you for their peace of mind and caution.

U-Exchange.com
U-Exchange is a bartering website that allows people to find trade-able goods and services in a specific geographical area. Search your country, narrow it to your state, and start browsing away. The site requires a membership to post and begin exchanging, but it is a free service that is supplemented by banner advertisements.

Just like Craigslist, U-Exchange is a general posting site, and you assume all risk and responsibility for contacts and exchanges you make. When you see a trade that you are interested in making, click on the member’s name. You will be provided with their contact information, and from there it proceeds much as a face-to-face exchange.

A quick glance in the Oregon region includes someone looking for vacation lodging, someone trading a classic car for a four-wheel-drive SUV, and people trading body piercing, mechanic services, landscaping, and more.

3. Time Banks

What happens if person A wants a massage and can trade haircuts, person B wants a haircut and can trade landscaping services, person C wants lawn care and can trade auto detailing, and so on? How can all of these people’s wishes be met?

A barter exchange, or “time bank,” allows you to “bank” what you’ve earned from services you’ve provided and use those “funds” once you find the service you’re looking for. In this case, the currency is time, so if you spend an hour performing a service that earns you a “time dollar,” that can be redeemed for any service requiring a “time dollar.”

For instance, person A could give person B a haircut, and use the time dollar to trade for the auto detailing from person C. Though you run the risk of never finding something you want, the chances of that are quite low.

To try a time bank, search online for one in your local area using TimeBanks.org. How time banks are managed varies according to the region, so it is important (and often mandatory) to attend an initial meeting that explains the general rules of your local chapter. Once you do this, you’re ready to start trading away. Your services and contacts are identified through the local time bank website.

A time bank may require a membership fee, although it may be just a few “time dollars” a quarter. However, you gain the benefits of trading within a local organization that can allow you to verify the services of participants.