Why Barter?
Barter, as most people know it, is a trade between two parties with no cash changing hands. Since both parties are making a new sale, the cash outlay for the merchandise they received is equal to the wholesale cost of the merchandise they sold. In effect, barter allows you to acquire products and services at your wholesale cost.
EXAMPLE: A jeweler sells a watch for $500 and his cost is $250. He needs to purchase $1000 of catalog printing. He has two options:
- Write a $1000 check for the printing.
- Trade two watches for a value of $1000, with only a cash outlay of $500.
Which Way Would You Choose?
NEXT: Expand, Improve
Member spotlight
Name:
Dr. Thomas Kutrosky
Company:
Optometrist/Owner — El Portal Optique
Member since 1986
 |
I have found in my many years of doing barter that I always think trade first, before paying cash for anything.  |