Barter Items: An Alternative Economic System
Bartering was a very important part of the economic systems of early communities. The primary economic activity was bartering food for services or non-food items. When little, valuable barter items were starting to be utilized as a way to receive items and services without using cash is how our modern monetary system grew out of bartering.
Individuals with barter items can place descriptions of items needed as well as items they have while waiting for someone with a well matched item to show up. As outdated as barter appears it has become more popular by the World Wide Web. Now it is unlimited how many people can be hooked up by the internet where at one point the disadvantage was often a lack of traders.
The best market for barter items is still a local barter network even with the internet providing an infinate number of possible trading partners. When bartering locally you can reduce your costs especially transportation costs. You may lose all your savings in the transaction if for example someone in San Francisco is willing to trade you his scooter for your armoire but you live in Boston and have to pay for shipping cross country.
When doing long-distance trades for your barter items, there is the disadvantage of not being able to do the exchange in person. When viewing the items in person either party can view the barter items and decide if it is what they were really wanting, and if not have the ability to back out of the deal. Also, it ensures that either party is not falsifying or distorting the quality of the barter item.
Individuals aren't the only ones who can benefit from barter. Businesses, too, can join with local barter networks with great profit. Businesses (especially small businesses) may be able to obtain business-to-business services such as design and accounting for less than paying cash. In addition, barter can be a creative way to raise local awareness of a new business, such as a boutique or bakery, while avoiding the wasted money that often results from purchasing advertsing.
In a nutshell, what was old is now new, including the art of bartering, which is the most ancient of economic orders. The exchange of barter items may be the answer to your needs, regardless of whether you are tidying up your garage, trying to swap newly picked vegetables for childcare services, or hoping to increase public awareness of your small business.
Long ago, barter was the primary economic system, but with the rise of currency, barter fell into disuse. Now, the internet's capability to connect an infinite number of traders globally means that anyone can list their barter items with a description of what they'll accept in return, creating unlimited opportunities for world-wide trading. However, local networks provide the best opportunities at the lowest cost - especially for shipping - and allow in-person exchanges, examination of goods to ensure adequate quality, and the ability to check out the other trader. Businesses can also profit from barter, and offering to trade services or goods is good PR.
Published June 24th, 2008
Filed in Business
