Bartering Dos and Don`ts

Sometimes when money is tight, bartering can be a nice way to trade services or goods needed to run your business. This however, if not handled carefully, may open up you up for an unpleasant experience if you don`t define up front what you are trading. Here are list of dos and don`ts when bartering;

• Do write on paper what the exchange is, be specific about what it entails and have both parties sign it. After all, would you enter into business with someone without signing a contract? Bartering is a business transaction and should be treated as such.
• Don`t accept goods for your trade at a retail value. Always trade what they cost you to buy and demand the same. Retail value is the price of an item on the market, not what the retailer paid. With that said, would you trade $125 worth of a service for a brush that cost $16 dollars? That clause if applicable should be written in.
• Do barter for equal trade. If you trade $100 in merchandise, demand the same trade. Uneven trades make bitter business relationship.
• Don`t leave the contract open ended. I once watched a TV judge show where the agreement actually called for whenever the one party was able to make restitution, to make restitution. The other party got tired of waiting for whenever and sued. Always have a time stipulation for goods to be delivered or services to be rendered. This will protect you from being gypped out of your shake of the deal, often called swaplifting.
• Do barter with friends. I often oppose doing business with those who you know well. But the truth of the matter is, is usually your good friends the only ones willing to try you out when you have no experience.