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?
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Member spotlight
Name:
Dr. Mitchell Honig
Company:
Dentist
Member since 2004
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The biggest benefit I get from barter is being able to splurge on certain items that I might not be able to afford at regular cash prices.  |