Is a Barter Exchange Right for Your Company?

Bartering is an alluring concept, especially when sales are down: You can unload excess Inc.com - The Daily Resource for Entrepreneursinventory and get things your company needs — all without spending precious cash. So it’s not surprising that bartering is on the rise. In a recent survey by American Express OPEN, 23 percent of small businesses said they had increased bartering activities since the onset of the recession. But bartering isn’t right for every company, and sometimes it can be deceptively expensive.

Part of the reason more businesses are bartering is simply that it has gotten easier. Several websites, called barter exchanges, have cropped up to connect businesses interested in swaps. Unlike a direct trade, in which a vendor accepts your goods or services as payment, on a barter exchange you sell your wares for so-called barter dollars. That currency allows you to buy goods or services from other exchange members. This type of system is designed to create more mutually beneficial trades, but it doesn’t always work that way. Read more:

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