July 31, 2010

How It Works

I have 100 staples ... Corporate Express brand 1/2" staples, to be exact.  I'm going to trade each of my staples for 100 bigger, better, rarer, and niftier things.

I've actually got some really cool stuff. And if you've got some of The Wants, that's even better!  So, want to trade?  It's easy. Just follow these steps:

          1) Email me at onehundredstaples@gmail.com
          2) Put what you WANT in the subject line (e.g., "Staple 38b")
          3) Describe your OFFER in detail in the body of the email.

I want to make a deal that's good for both of us.
Space
Sincerely,
One Hundred Staples
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July 28, 2010

Kinetic Value

There's something you need to know about me: I believe impossible things, just like Alice. Why? Because the great thing about impossible things is that they are just that ... right up until they're not any more. Impossible, is only a temporary state.

You know that red paperclip guy? The one who got the house?  Yeah, he's cool. I'm going to copy him ... but not really. You never do the same gig twice. The paperclip guy worked off of an entirely different economic model, but I'll explain that in a bit. I'm going to do it bigger and better.

Impossible?  Maybe, but we both know how I feel about the impossible. Don't think I can do it?  I'd agreed with you, but then we'd both be wrong.

Now, why do I believe I can trade one hundred Corporate Express brand 1/2 inch staples into something much more than a strip of staples? Because people like stuff. Yes, we do.  Especially stuff we'll only use once, if ever. To me, that stuff represents unused and temporarily wasted value. Just because we're not using it doesn't mean it can't be used, right?

And why can't I use it? No reason ... no reason at all. So, off I go, collecting all that unused, stored, and somewhat inaccessible value. I'm going to barter it all together into a large ... something. I don't know what. Actually, I know exactly what, I'm just not going to say yet.

Why is this different from the paperclip guy? Because the paperclip guy used perceived value added to get what he was after. Fourteen trades from a paperclip to a house? Without advertising, his objects weren't worth nearly as much as he got for them. Not that I'm fundamentally opposed to perceived value, it's just that it doesn't really do society any good. It's like playing hot potato with a live M80 ... pass it fast enough while time lasts, but it'll take your hand off when the fuse is gone. Remember that dot-com bubble, and that housing bubble? Yeah, that's perceived value evaporating even faster than your 401k. But, you know, a few people got stinking rich off it all. Good for them. (Lame)

Advertising can create perceived value which may be added to the real value of a good or service. Hopefully the core value is more real than perceived. What is real value, you ask? I'll simplify it to two cases: use value and exchange value. Use value is like your shampoo or the food you eat, or even the weight bench that's collecting dust in your garage. Your car, your smart phone, and your TV also have use value, but you can see how each of these goods might vary in actual value depending on the owner's use of them.

Exchange value is more like the money in your pocket, or that thing you have that your best friend would give his left kidney for. This kind of value can be seen in skills, talents, and education, too. Both goods and services can be excellent examples of these two value types, just different amounts of each. 

Doesn't matter who you are, or where you are, you definitely have something that has value and that you're not using. It's just sitting there, depreciating. I'll bet it's a crockpot, isn't it? Someone, somewhere could use that crockpot to make some delicious and nutritious (or  suspicious) meals. You might also choose to re-gift that crockpot to that nephew or cousin who's getting married next month. Maybe I'll just call this kinetic value.

You should do something with it, whatever it is. See where I'm going with this?
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July 26, 2010

Bartering Tips

I compiled a list of trading tips from a few websites as well as from my own thoughts and experiences. From these sources I created an abbreviated list of dos and don'ts that you may find interesting.  

But first, as is my habit, let me wax theoretical for a moment. Somewhere in the web I found this quote by Ron Whitney: "The real value of barter comes when you can use your otherwise unused capacity."  This is what I've called "kinetic value" earlier in the blog. To me this is a fundamental value that I accept as a trader. I want to be able to use what you don't use, and for you to use what I have to trade. Win-win: that's how I like it.

Manage the Trade
     Have fun
     Be specific in what you want/need
     Be flexible
     Start with the question: “What’s your best price?”
     Do your homework on trading partners
     Don’t assume anything
     Make a contract when needed
     Keep good records
     Keep in contact
  
Consider the Value Proposition
     Make it fair to everyone involved
     Value add (bigger, better, rarer, niftier, etc.)
     Know what you want and need
     Know your limits
     Know the real value(s)
     Trade what you can’t get cash for
     Consider the use value versus exchange value of the object
     Avoid expiring/seasonal objects (food, event tickets, holiday decorations, etc.)
     Avoid obsolete items (perceived / planned obsolescence)
     Prefer assets to liabilities
     Prefer goods to services
     Consider tax implications

Leverage the Trade
     Use social networking
     Involve lots of people. People have knowledge, and knowledge is power.
     Consider triple trading: A trades to B trades to C trades to A.
     Double up (trade two objects for one) only after the item has cash value. 
     Double down (trade one object for two others) before the item has cash value.

Websites accessed: