Are Barter Sites Right for You?

Online bartering sites want to change how consumers shop.

By Chris Penttila | Entrepreneur Magazine - October 2006

Don’t want it? Swap it. Or so says a growing number of entrepreneurs running sites that let people swap all kinds of stuff. Bartering is the oldest business practice around, and a handful of swap sites arose during the dotcom era. Most didn’t survive. Now the sector is re-energized, thanks to better technology and shrewder online shoppers who have accumulated stuff they no longer want or need. “The model was around a long time ago—it’s just re-emerged now because of the flood of DVDs, CDs and media,” says Bob Alvin, 48, founder of Los Gatos, California-based BarterBee, a six-employee site launched in 2005 that specializes in online trades of CDs, DVDs and video games.

Numbers revealing the size and potential of the swap sector are hard to find. Talk to “swapreneurs,” however, and they’ll tell you they’re on a mission to change the world of buying and selling. “In the way eBay changed the fabric of society, we have the same opportunity to do that,” says Jessica Hardwick, 39, co-founder and CEO of Sili-con Valley-based SwapThing, a year-old swap site whose sales—which are earned through transaction fees—will approach $1 million this year. SwapThing’s membership base is growing 40 percent a month, and the company boasts a growing list of professional services up for swap, from haircuts to innovation consulting.

Still, swap sites face challenges. Shipping and geography can prohibit some trades. Users must also spend time matching up trades that aren’t equal in value. But the hurdles aren’t stopping swapreneurs, who are in a fast and furious race to become the eBay of barter. It’s anyone’s guess who will take the lead, but swap sites are betting that people’s love of stuff will drive them toward the online swap marketplace. “I think everyone at heart is a bargain shopper,” Alvin says. “[Swapping] is a valid [business] model.”

A BARTER EXCHANGE IS THE BEST BUFFER AGAINST FAILURE FOR MERCHANTS - 845,322 small business owners in America agree   

I found this at http://www.pressreleasespider.com/feed28780.aspx 

Press Release:

(New York) Shirley McBride the research director for the North American Barter Association confirmed that one in every twelve small business owners gave barter a try in the last year, while a full 7% use barter on a regular basis to keep their cash flow and their out of pocket expenses down. ?Clearly, barter is a versatile tool with so many benefits for small business and not much of a downside? she said yesterday at a Chamber of Commerce networking luncheon for new business owners.

In today?s highly-competitive market place, merchants struggle to survive and balancing a company?s resources is essential to stay in the game. ?By utilizing barter, a company can unload a slow-selling inventory and in return get something they need without having to write a check. As a result, companies that barter average a cash flow that is 13% higher, and that really can make a difference? McBride added. In a recent NABA survey 845,322 small business owners in America agreed that barter is an essential part of their growth and daily operations.

?Companies that utilize barter on a regular basis tend to be more progressive, have higher credit scores, faster growth rates, and generally tend to have healthier bottom lines? said McBride. Some business owners wrongly consider barter to be a ?last resort safety valve?, but in reality over 60% of Fortune 500 companies and 11% of public companies use barter on a monthly basis as quick way to balance their books, stimulate new business, and bolster sales. The best part of all is that barter is a very low-cost financial management tool that can get thousands of dollars of advertising, printing, or office supplies in exchange for an inventory that is otherwise going to become a tax write-off. Barter is especially helpful for new start-ups trying to survive their first and toughest year where 50% of all ventures will fail.

The only down side to barter is a small one, and that is finding an experienced and competent barter exchange in your region that has what you need. The Internet is a great place to start. Finding a barter exchange with the least amount of complaints and most laurels is not hard to do. Merely do a search on Google, Webcrawler, or Dogpile using the name of the barter exchange followed with a keyword like ?complaints?, or ?problems? or litigation, or ?investigation?. NABA recommends that you use a barter exchange that is a member in good standing of a major trade association like IRTA, NATE, or NABA, with a good D&B rating and clean record with the BBB. With more than 2,000 barter exchanges in the U.S. it?s not difficult to find a reputable barter exchange than can start helping you save money with a phone call today!

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