Image credit: Visual China Group.
Is barter exclusive to product vs products?
There’s a common misconception that barter transactions must include two physical products as part of a deal. For example, an apple for a pear or a block of cheese for some chalk etc. suggesting that both parties must walk away with something tangible in their hands, however, this certainly isn’t the case.
Businesses and individuals have been trading their services and even their know-how for years!
Barter expertise and know-how!
The great thing about bartering is that you can trade anything… such as skills and expertise. It’s not limited to physical products only.
You can even barter something as simple as accounting advice in return for a pallet of wine, or even something a little more exotic, which is exactly what fashion-entrepreneur Pierre Cardin did with the Chinese government back in the 70s.
Not only was Pierre Cardin an international fashion icon and titan of the industry, but he was also a savvy businessman too. In 1979 he wrapped up a deal with the Chinese government providing his expert design advice and know-how, in return for opening up the Chinese consumer market to his fashion brand, as well as paying royalties in cashmere and top-notch silk.
Are barter deals limited to swapping only products and services?
Barter deals can include products, services and cash at the same time. It depends entirely on what you agree with the other party.
For instance, the deal that Pierre Cardin secured not only included the exchange of products in return for services, but also involved royalties, as well as access to an entirely new and highly lucrative market.
The same applies when trading through baggl, as you can sell your products and services for part barter credits and part cash. The price and ratio is independently agreed between two parties.
Summary of what you can do with barter:
- Barter helps start-ups to get off the ground without having to give away freebies to create case studies.
- Barter helps you to trade surplus stock and spare capacity.
- Barter helps you find new customers.
- Barter helps improve cashflow
- Barter helps when entering new markets
If you’re interested in reading about another cool barter deal check out “The biggest barter… Pepsi-Cola for Russian Warships and Vodka“