How To Barter Successfully!
Posted 2nd February 2010 at 08:46 PM by Sylvia Meier
Tags barter, barter arbitrage, bartering, how to barter
Bartering can be a great business asset, if used correctly. If not, you could end up with the short end of the stick, and a bad taste for barter. Learning how to barter successfully can make a big difference.
First assess your business for what you can barter with.
What items do you have a larger margin on? Would these be items you would be willing to trade? The larger the margin you have the better leverage you create when you turn those items into trade dollars, therefore the better rate you will be getting when purchasing items using those trade dollars.
Be clear in what items you are willing to barter, and which ones you are not willing to barter. Make a list and stick to it. Some things will make sense to trade for, others where you have a very small margin, do not make sense to barter with.
Looking to do direct trades? Here's a few more tips to help you trade successfully.
Only barter if both of you need each others services immediately. Having something usable down the road is great, but you come into the risk of the other party not fulfilling their part of the agreement.
Get specific. Don't generalize when discussing your trade agreement. You want to ensure that all cards are on the table and both parties understand exactly what they are trading and exactly what they will be recieving in return.
As is good in any business transaction, keep communication open. If you close off the lines of communication, the trade could go sideways and you could end up with a bad deal. If you do not feel their side was adequetly met, make sure you let them know and they can help resolve the situation, instead of anyone walking away with sour grapes over the deal.
Maintain records of all trade deals completed. Barter and trade is often taxable in teh same way as cash transactions, so it is important to keep track of all barter deals for tax season.
With a little business saavy and common sense, barter can be a successful experience for all parties involved. Direct trade can be risky, whereas barter and trade exchanges offer you more protection against trades going bad, so as always proceed at your own risk and do your homework first and your first trade and all that follow can be best for your business.
Learn to barter better, www.FutureOfBarter.com
First assess your business for what you can barter with.
What items do you have a larger margin on? Would these be items you would be willing to trade? The larger the margin you have the better leverage you create when you turn those items into trade dollars, therefore the better rate you will be getting when purchasing items using those trade dollars.
Be clear in what items you are willing to barter, and which ones you are not willing to barter. Make a list and stick to it. Some things will make sense to trade for, others where you have a very small margin, do not make sense to barter with.
Looking to do direct trades? Here's a few more tips to help you trade successfully.
Only barter if both of you need each others services immediately. Having something usable down the road is great, but you come into the risk of the other party not fulfilling their part of the agreement.
Get specific. Don't generalize when discussing your trade agreement. You want to ensure that all cards are on the table and both parties understand exactly what they are trading and exactly what they will be recieving in return.
As is good in any business transaction, keep communication open. If you close off the lines of communication, the trade could go sideways and you could end up with a bad deal. If you do not feel their side was adequetly met, make sure you let them know and they can help resolve the situation, instead of anyone walking away with sour grapes over the deal.
Maintain records of all trade deals completed. Barter and trade is often taxable in teh same way as cash transactions, so it is important to keep track of all barter deals for tax season.
With a little business saavy and common sense, barter can be a successful experience for all parties involved. Direct trade can be risky, whereas barter and trade exchanges offer you more protection against trades going bad, so as always proceed at your own risk and do your homework first and your first trade and all that follow can be best for your business.
Learn to barter better, www.FutureOfBarter.com
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