Benefits Of Trading Services Or Goods In Your Business

Last blog post we talked about the hidden costs or pitfalls of trading services, or bartering, in your small business. I often caution other small business owners to be careful with trading “free” services. However, there are also some instances where it may be great for you. Here are some common questions I ask my business colleagues and friends when they ask me about the potential benefits of a trade.

1). How Much Is It Really Costing You?

A Small Business Owner often wears many hats. It is easy to get caught up in other parts of your business or look too broadly at the big picture. You may not feel the full weight of your inventory costs. If you owned a store that sold lotions, soaps, and care products, how accustomed would you come to pulling something off the shelf for a gift, a promotion or personal use? Chances are, you would become pretty comfortable with it. When in fact, every item you take off the shelf to be used or given away cost you between $9-$14.

If you were to trade or barter $50 worth of your products for a massage, it isn’t free to you. It probably cost you at least $20 or so. In this case, your massage may be a “good deal” but it isn’t free. Your massage is costing you $20 or so. Now maybe, this trade is still worth it to you, because you really want the massage and the therapist really wants your soaps and lotions. Bottom line, do the math and know your costs!

2). Do You Trust The Person And They System You Will Be Using?

The most important part of a trade or barter is that it is fair and everyone benefits without taking advantage of one another. Make sure to consider this and don’t let your abundant generosity rule your agreement. Make sure from the get-go that you have setup a fair trade and make sure there is an easy way to track it. When I am approached for a trade by someone I don’t know well, I will often put a little waiting period in place. I say something like, “That is a great idea! Let’s continue to do business for the next 3 months. We can take a look at the potential benefits in the new year.” This gives me time to assess the person and the trade they are offering. Then I can decide whether I trust them and I feel the arrangement would be fair.

3). Are You Clear On The Benefits It Will Bring To Your Small Business?

Be clear on why you are trading or bartering and what the benefits are. Is it to save money on another good or service you would normally buy? Is it to get your products out in to more people’s hands? Another reason may just be for your pleasure of getting goods or services cheaper than you could buy them outright. Regardless, just make sure you know why you are getting into the trade. Then, if necessary, you know when it may no longer be working for you in the future!