What Is Barter Trade
Barter trade is the ancient practice of trading which started centuries ago before money was used as the global currency for the purpose of exchange. During that time, people used to exchange products and services in return for the same. Money had no existence at that time, as it was not invented. They used to exchange the commodities and different services that they owned for the ones they desired. Many nations used to be involved in such trade. China was by far the biggest traders at that time in the barter trading. Many think that with the invention of money and evolution of technology, this trade has taken a back seat. But that is not true. With the growth of internet, bartering has achieved a new dimension with the various online bartering sites and millions of people are getting involved in this trade to enjoy the various benefits.
Secrets of the Barter Trade for Making It Successful
- One should be specific about the things he wants exchange and what he wants: While exchanging through barter trade, one should not be vague. He should state exactly what he wants and what he is ready to exchange for the same. The more specific he is in his details of his requirement, the easier it will be for him to get appropriate traders. In this way unnecessary problems and misunderstandings can be easily avoided.
- Letting people know what one has to offer and identifying an appropriate trader: One can take the opportunity of informing his neighbours and his colleagues in his work place about what commodity he is offering to barter. It will be easier for him to reach out to these people as because of the close proximity factor. Moreover, nowadays many online barter trading websites have also been introduced. This increases the horizon of meeting new people who are also interested in the trade. After finding a suitable trader for the deal one can strike a good bargain even with strangers.
- Details should be worked out in advance: One should be very specific and should decide in the terms of the deal in advance very clearly. There should not be any scope for any kind of negotiations later, which might lead to troubles. If the deal is regarding any service, then the parties should decide from the beginning, the date and time of the performance of the service. Similarly, if the barter is for goods, the details as to which party should be making the payment of packaging and posting should be well decided ahead.
- One should be very clear about the tax liability: One should always consult his accountant about the tax liability relating to the barter trades. The reason is that moat of the barter systems, even the online barter trade websites are under the scrutiny of the government system. Tax might be imposed on a barter deal which professional services are bartered for products, etc and if profit is earned. The dealer should have a good knowledge of these tax implications.
- Means to save money through barter trade: One can hold a private swap party for various kinds of items instead of purchasing them from stores. The number of online barter trading websites have made it possible for a person to exchange he has but does not want for things he wants but does not have and for this he need not leave the house too. These websites deal in all-bartered goods and they have made life easier for many.
- Creative: If people can be creative the bartering practice can get them anything. It is not just restricted to books, DVDs, or small home appliance. Many people are swapping houses and trading them if they are finding it difficult to sell them in the real estate market. The key is to being creative.
Rules for Safe and Successful Bartering
- One should not barter for something he does not want.
- One should be sceptical when he is required to be
- Consideration should be given for all the goods and services before striking a deal
- Items should be well tested before using
- Bartering for items which a party does not want to give, should not be done
Conclusion
Thus, bartering provides a great way to save money as one can exchange products without involving any use of cash. This way when a family faces a financial crunch, it can make the optimum use of its available resources. This kind of trade also proposes high level of flexibility as almost anything can be exchanged. However, one should be very careful in bartering, especially through the online websites. The barter trade system can work for the benefit of everyone for obtaining the products and the services that one wants without having to pay for them