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How To Barter: 5 Tips to Get What You Want Without Paying a Dime
What’s the first thing that comes to mind when you hear the word “barter”? Is it the book, One Red Paperclip. Does it make you think of Craigslist.org? Maybe it gives you the vision of a shady business deal going on in a back alley.
Did you know bartering can save you a ton of cash? Well, it can! But only if you do it right.
First, let’s take a look at what bartering is. To barter is to trade goods or services without using money. The idea is simple, and the practice dates back to the beginning of time, when money wasn’t around yet. Caveman want food? Caveman make fur coat for other caveman with wooly mammoth meat. Or something like that.
You’re really a bartering expert in disguise. Reflect a moment upon your childhood. Did you ever trade your pb&j for a Snickers bar at lunch time? How about trading baseball cards. Or pogs! Remember pogs?
You didn’t have cash as a kid, so you improvised. This entrepreneurial spirit certainly doesn’t have an age limit. The barter savvy Americans among us have scored prime vacations, cars, Christmas gifts, and even surgery!
How can you regain your bartering prowess? Follow these five tips from the pros to get started, and quit paying cash!
1. Assess your assets.
Take a mental (or physical) inventory of what you have, and at what price you’re willing to part with it, whether it be special skills you have, or actual stuff.
Think creatively.
Sometimes you might take something about yourself, or something that you have, for granted, not realizing its bartering potential. Maybe you have a passion for painting desert fauna. Maybe someone out there who knows how to build that hutch your wife has been begging you for has a wife who’s been begging him for a painting of desert fauna for their living room. Who knows?
2. Find a forum.
You know what you want. And now that you know what you’ve got, put it to the test—online. The internet has made bartering incredibly easy. Craigslist.org is arguably the most popular site for trading goods and services.
List your request, and what you can offer in return clearly and favorably. If it’s a thing you’re trading, make sure to attach a good photo (or two or three) to your post, and describe its current state. The last thing you want to do is tick off the gal who’s got what you want because when she receives the “like new” mountain bike you send her, she notices the shocks are blown, and the paint is chipped off on one side—the side you didn’t take a picture of.
SwapThing.com is another site that has taken off in recent months, where you can barter services, things, and skills online.
3. Be confident.
Know your limits. If you appear wishy washy to a potential barter partner, he/she might not want to do business with you, fearing your goods or services aren’t worth what you say they are. Or worse, you’ll undersell yourself and feel like you got swindled.
For example, if you stripe and seal coat the parking lot of a chocolate shop in return for specially made chocolate bars as Christmas gifts, know how much chocolate your services are worth.
In fact, if you’re exchanging professional services, you need to be aware of the barter credits system currently in place. A barter exchange is a commercial organization that creates a platform for clients to trade on and an internal currency for clients to trade with.
When you perform a service for another business in the organization, you are paid in trade credits, which you can then use to buy another company’s services. Check out the National Association of Trade Exchanges (www.nate.org) and the International Reciprocal Trade Association (www.irta.com) for more information.
Make sure when you’re trading commercially that you list your transactions on your taxes, lest you be attacked by the IRS! They need money just like everyone else, but instead of bartering, they’ll come after unwitting tax evaders!
4. Never cross the bottom line.
Don’t be afraid to push the limits, but know when to stop.
Don’t insult the person you’re trying to barter with by offering something ridiculously unequal to what they’re offering. Like a Hershey’s kiss for a Porsche. You’ll immediately be written off as an unserious, and annoyingly time-wasting barterer. Your chances of ever owning that particular Porsche, or some other similarly hot car owned by the same guy, will be shot.
5. Get it in writing.
If you’re sending something through the mail to someone you don’t know because you’ve bartered over Craigslist with them, get a written, signed document stating your exchange, both of your names, the goods being exchanged, and your addresses and phone numbers. That way if your mail box remains empty after the exchange has taken place, you’ll have somewhere to start to track down that original My Little Pony your husband made you trade for a bigger TV.
According to America’s Research Group, “67 percent of consumers have haggled in recent months, compared with 33 percent in 2006.” Now is a great time to get bartering! There are tons of people out there willing to barter with you, and more forums than ever to hook you up with them.
Stay focused, know what you want and what you’re willing to do, or part with, for it, and go for a trade!
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Due to the challenges of the current economy, most of us are indeed in a crunch just to meet the bare necessities and this article does a great job introducing a concept many don't use but would find helpful-bartering. I have been a barterer since a teen and the steps in the article are all accurate. I've gotten books, cosmetics, office supplies, clothing, games, etc...etc. from bartering. The hardest part of bartering is knowing when not to push your luck and the writer mentioned that which was good. Sometimes pushing your luck can actually cause you to miss out on a deal so you have to be careful when bartering. I am glad to see such an article because it helps those of us needing "extras" to obtain them without a dime and we all have somethings we can exchange for things we need. Great money saving article.
Never really thought this way before. Thanks for the tips now I can exchange some of my good things for better stuff with this idea. Thanks.
Excellent ideas! I've been thinking a barter system might be the way to go in light of the current financial crisis, and this is an excellent stepping stone to that way of thinking. Thanks!
These are some excellent ideas, and with a nice underlying sense of humor! Craigslist.org actually has a set section for bartering as well. Although you are quite right about knowing the limits. I've seen some ridiculous offers on there. Sorry your old Nintendo is not worth my i pod. That being said, thanks for the great tips!
Great ideas! Let me at it!
What a great idea with our current economy and record unemployment! I had no idea there were forums for bartering. Thanks for pointing that out!
I always get very self conscious about bartering. I think I might have to try some of these out, though.
I think this blog has good ideas in theory, however in practice I'm not convinced. Finding common ground on the value of two unrelated objects might be more of a hassle than you think. It might be best to sale the item for cash on Craigslist as opposed to seeking out an item you want and begin the bartering process.
I absolutely love bartering. In my culture, it's a skill that you need in everyday situations. "Don't be afraid to push the limits, but know when to stop" is a very good advice. It's hard to know, but after experience, that's a priceless skill. Especially during the financially difficult times, buying off of craigslist and bartering to get a good price is smart.
I find bartering to be a very involved psychological process (not a bad thing, per se). It's important to do some research, and really be able to assess both the value of your services, as well as the value of what you want. And yes, people who try to make ridiculously one-sided trades are very annoying. Grrr. Makes me want to physically hurt them.
This is the kind of thing we could all do a little more of, and start saving the sagging economy - at least in our own personal corner of the world! I think you have to have a business mindset though - in order to figure out if what you do/have is worth what you want.
This is a very helpful post, especially for someone like me who is frugal, but often too polite and/or paranoid to try to barter for certain goods. Often I'm afraid that my offer might be insulting, but I've never had anyone really say No to my offers, so I guess I'm getting better at it.
Yes, right now it is a time to barter and save. Great tips,on how to save money.
With the way that the economy is today, I can see myself doing this more and more. I have always been afraid to ask for lower prices or better deals. I am always looking for a better price or deal then asking for a better price or deal. Reading this gives me a little more strength to try bartering with others.
Thanks for sharing :)
Thanks for the tips! Being an antique dealer I'm into bartering! I haven't tried craigslist or swapthing, but you've got me convinced to check 'em out!~ Thanks for the suggestions!
These are some pretty cool ideas. I never really thought about bartering before... in fact I never knew it existed in this way. I'm looking at swapthing.com right now because I'm curious! The red paperclip story is so amazing.
This was an interesting read. I think bartering is an important skill for anyone trying to get a good deal. I also had never heard of swapthing bit will check it out.
These are some really good ideas. I never want to barter. I always feel... unsure of myself or selfish or something if I try to barter for things and usually end up caving in. I think I'll try harder and use some of your advice next time.
Great idea! Confidence is most definetely the key to bartering!
Thanks for the encouragement! This is something that more people should give some thought to.I love the idea of the bartering system having a place in our lives. I mean, we have liquid assets and they have value that is beyond paper currency. This method of exchange somehow seems more direct than the use of money. It's certainly more fun!
Great tips, I appreciate the advice.
I love the information about bartering that you gave. We were thinking about doing some bartering as we have a small busines and we are in need of a few things. I think I will go for it and see what we can give other peole and get something we need in return.
I read somewhere that Americans are the only people afraid to barter. I never have because I don't know how! These are some helpful, informative and unique tips for saving money!
I honestly did not know that it was even possible to barter in today's age of money money money! This is refreshing! I am on CraigsList all the time and am going to check this out. I am a regular handyman and used to even do it for money as a business. I am betting I could work something out with someone for something I need. Thanks!
Bartering really isn't something that works well these days, at least among larger companies. Local businesses and friends and relatives are much better for bartering with.
This is a very timely article. I will be on the lookout for opportunities. Thsnks for the tips.
As an electrician, I have opportunities to trade work all the time. I added some plugs for someone last week who fixed my digital camera in exchange. Saved me $100.
I wouldn't have thought a lot about doing this. I guess I've done it on a small scale with friends, but never consider taking it to a higher level. Thanks for the ideas.
This is a great idea. Bartering is great way to trade skills, as well. For instance, my father is a lawyer. He has done legal work (wills, ect.) for people who in turn have done carpentry work at his house.
If you have a valuable service to offer a small business (like law, ad space, accounting, etc), you can even barter it for equity in the company! You can go to places like http://stock4services.com and find startups and barter with them.
Great post, by the way!
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