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Barter |
The Barder or Trade Exchange industry is large with approximately ½ million businesses in North America using the "barter" system to positively deal with excess inventory, lower than expected sales, etc. |
While barter may be done as a one-to-one trade (I'll give you three hours of tax consulting in return for five classified ads), it can also be handled through an organization called a barter exchange. A barter exchange acts as an intermediary between businesses looking to make trades; it issues a trade currency to put a value on barter deals, keep tracks of transactions, and handles other paperwork. Barter exchanges are now moving online, using the power of the Internet to connect traders and manage trades. Barter Examples Here's how a series of barter transactions might work: o A magazine publisher has empty advertising pages for an upcoming issue. The ad spaces get listed and sold on a barter exchange, and the publisher acquires frequent flyer miles for the magazine's traveling sales force. o An on-the-move consultant with too many air miles trades them, and receives printing services for business cards and stationery. o The printer lists its services, and picks up three personal computers to upgrade its administrative staff. o A computer retailer trades excess computer inventory, and gets cleaning services for its store. o The cleaning service trades its services for advertising space in the magazine. |