Thursday, 19 July 2012
The art of Bartering has been around since time immemorial and it has been proven to be an acceptable and enjoyable way of doing business with other like-minded people. Bartering can also be a satisfying and advantageous way of obtaining essential goods and services especially when money is tight. Yet, while doing trade by barter has been common practice that is acceptable across much of the world, and frequently used by governments to trade commodities such as oil, in Britain there has been certain scepticism surrounding it despite the advantages it can bring.
As any small business knows, a lack of cash flowing in can often be a burden especially during these hard pressed times while the banks are refusing to extend lending and overdraft facilities to viable enterprises. During periods when cash sales are scarce, you still need to obtain essential raw materials or services from your suppliers in order for your business to survive. You might also be sitting on excess stock that is taking up valuable storage space and costing you money that you want to shift. Those in a service industry are also likely to have excess capacity that they need to fill to keep the business ticking over. This might include an hotel with empty rooms that need occupying, a graphic designer that has time on their hands or a publication with spare advertising space going begging. Restaurateurs will know that it creates a bad impression when a few paying customer are surrounded by an otherwise empty dining room. Customers prefer eating in vibrant establishments; empty premises create a bad ambience and can damage a reputation by suggesting the food is not good. It makes good sense to fill empty tables with diners even if these customers cannot currently afford to pay in cash but are willing to exchange something else your business may need?