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I mention to Zalewski, who also runs a bike repair shop next door to Fool, that I recently acquired a new bike in a BTZ barter. He tells me to bring it by the shop once I’ve picked it up — “I’ll take a look at it,” he says, “to make sure it’s rideable.” It’s only after I hang up the phone that I realize I forgot to ask him what he’d accept as a trade for repairs.
“Economic theory has always got to be historically bounded,” Beggs says. “I think it’s a mistake to think you’ll find the workings of modern money by going back to the origins of money.” He does point out that, while barter may not have been widespread, it’s possible that it happened somewhere and led to money, just given how much is unknown about such a large period of time.
Bartering allows businesses to sell goods and services to cash-poor customers. We can see barter's influence wherever a barterer is placing an extra order for farm supplies, filling an empty table at a restaurant, or joining a telephone-answering service which had been going broke. Bob Murley of Full Circle Marketing explained that some excess production capacity can as good as money: ''Everybody who produces something has a greater capacity to produce more of the same thing than to get something new or to create something new. So if a man is manufacturing tennis rackets, he can produce another thousand tennis rackets easier than he could go out and create a cruise for himself or advertising space for himself or travel credits for himself. So excess production is a tradable, barterable commodity."
What exactly is bartering anyway? Very simply, it's the act of two parties trading by exchanging goods and services with each other. It's easier than ever to barter with other parties. All you have to do is go online and search the Internet for websites that facilitate trading with others who might want the goods or services you can provide. There are even barter clubs where members earn credits (like dollars) for providing goods and services, and where those credits can be exchanged for goods or services offered by others. These credits become a medium of exchange possessing a notional monetary unit value.
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Companies may want to barter their products for other products because they do not have the credit or cash to buy those goods. It is an efficient way to trade because the risks of foreign exchange are eliminated. The most common contemporary example of business-to-business barter transactions is an exchange of advertising time or space; it is typical for smaller firms to trade the rights to advertise on each others' business spaces. Bartering also occurs among companies and individuals. For example, an accounting firm can provide an accounting report for an electrician in exchange for having its offices rewired by the electrician.
Use our virtual trade currency called Trade Dollars to purchase anything you want within the exchange. Our Trade Dollars are equivalent to the value of the Canadian Dollar. Our members are asked to price their products and services within the exchange at fair market value. This means you pay exactly the same amount for the offered goods and services as you would in the cash world. The only difference is, you now have the ability to buy things at a discount or at your own cost of doing business!