Bartering Website

[Steph]

Here's the link to the bartering group as promised. It's just getting
started so sign up to participate!

http://groups.google.com/group/barterithd

If you have questions on how bartering works feel free to email me.

Steph

[Stephanie Carroll]

I will post guidelines asap. There are tons! And if we want to decide
on a few as a group, we could set up the standards for bartering in
our community --that way we'd be acting according to our local rules.
I should say that there are many different guidelines for bartering.
And there are many different theories about the fairness/efficacies of
bartering vs different forms of trade and currencies.

One thing that I should mention right off the bat is that bartered
services and goods are still taxable. According to federal tax rules,
bartered services and goods are to be taxed at the rate for which they
would have been sold.

As far as bartering with local merchants - here is my very
inexperienced opinion :). Your friend is right as far as trading
"retail for retail" or "discount for discount". I would always value
the service and match the service you want to barter for monetarily
before trading. The issue at stake is a matter of emotion - I think.
If you feel you are being cheated because you didn't receive the same
discount you traded then you will always feel that you are being
treated unfairly. Since bartering is based on trading "perceived"
similar values then really what you are trading for is the perceived
value of a good or service. So if you think something is worth your 1
yoga class but then you later find out that the item is valued at less
than the monetary value of your class, you have two choices, 1. be
happy because your "perceived" value is still the same, or 2. be upset
because the monetary value is different than the "perceived" value.

This is extremely academic - but it doesn't have to be. If you want to
play it safe then always barter for the same monetary value or for as
you said "retail for retail" or "discount for discount" - you'll
probably feel better in the long run. And don't forget that if it's
not under the table it will be taxable.

Does that all make sense? I will post articles that hopefully have a
better explanation than I can come up with! :)

Steph

On Oct 19, 2009, at 10:59 AM, Cheryl Boyles wrote:

>
> Hi Steph,
>
> I am wondering if there are any guidelines for bartering that you
> could
> post. I consulted with some business people after agreeing to several
> bartering arrangements, and discovered I had made some basic
> mistakes--putting the studio at a disadvantage in these deals. I
> was told
> that, in order for an arrangement to be fair to all parties,
> bartering needs
> to be "retail for retail" or "discount for discount." In other
> words, if
> someone wants to trade me something for yoga, I shouldn't agree to
> let them
> trade a product or service they sell at full price for a service I
> have
> discounted. Am I describing this in a way that makes sense? Let me
> give
> you another example: I sell studio passes at a discounted rate for
> cash up
> front. Someone I know (who owns a retail business where I
> occasionally
> shop) asked me to trade for a 10-class-pass--which brings the cost
> of a yoga
> class down approximately 14% off of full retail. But the store
> credit I
> receive in return is at full retail. I was told by my consultant
> that what
> I should have done was charge $14 per class for $14 worth of store
> credit,
> straight across. Either that or I should be receiving a 14% store
> discount
> to match my discounted trade.
>
> I am very interested in bartering yoga, but one of the people (a
> long-time
> business man and friend) advised me against ever bartering. He said
> he has
> never come out feeling as though he got a fair deal. But my
> thinking is
> that if there are guidelines I can point to as I enter into an
> agreement
> with someone, I can utilize this avenue and still feel as though I'm
> making
> good business decisions for the studio as well as arrangements that
> are fair
> to all concerned.
>
> Let me know what you think--thanks Steph!
>
> Shanti,
> ~Cheryl

[Steph]

I have posted rules on how to post for bartering on the Barter It High
Desert Google Group. Also posted tax info and link. Will be posting
more soon! :)Steph