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:

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