Barter's Better Than Gold Milford, CT's

Bartering for spices in the market place of a German city in the 16th century.

2009-01-29T18:36:00.000-08:00

European spice merchants - In the 16th century, the Fugger firm of Augsburg traded in spices over the new sea route to India and acted as papal bankers.

Is Barter Better Goods-for-goods is winning out over goods-for-money in a cash-strapped economy, Milford Needs A Sensible Economic Stimulus Package!

2009-01-29T18:32:00.000-08:00

Is Barter Better?
Goods-for-goods is winning out over goods-for-money in the cash-strapped '90s

by Melanie Franner
(original article location:
http://canjewel.polygon.net/docs/august97/barter.html)

Canadian jewellers looking for new ways to augment their businesses may not have to look any further than a new-old way of doing business: barter. Although it's been around since the beginning of time, barter is catching on in the '90s as businesses look for new ways to keep hard-earned cash in their pockets.

The sophisticated barter exchanges of today combine the age-old practice of swapping goods for goods with a user-friendly, value-rich environment that encourages business growth. It means, simply, that you can sell your jewellery to another barter member, who will then pay you with barter dollars. You, in turn, are free to spend those barter dollars with any other members of the exchange - it could be landscapers, printers, restaurants or hotels. The larger the exchange, the larger your range of choices. Almost half of the 24 independent Canadian barter exchanges are located in the Toronto area. Within Canada, barter represents over $50-million annually. In the U.S., that number is well into the billions of dollars.

During the last decade, the Canadian barter industry has undergone a growth cycle. The reasons for this are many. First, some of the large professional exchanges have cracked down on unethical business practices, which has increased the industry's overall credibility. Secondly, small- and medium-sized businesses, the mainstay of the Canadian economy, are perfectly suited to the barter system. Plus, new businesses are cropping up all over Canada. And finally, tough economic times are forcing many businesses to look at other financial alternatives. "The last few years have seen a real upturn in the use of barter," says Michael Caron, president of BarterPlus Systems, the largest barter exchange in Canada, with over 2,500 members in Ontario, Alberta and B.C. "It's a constructive way of growing a business because it opens up new market opportunities. That's an important consideration in these tough economic times."

One such company, Quick-Silver Jewellery, a Toronto wholesaler, has been using barter for the 10 years since its inception.

According to Quick-Silver president, Glenn Schwendinger, barter is the perfect fix for any excess capacity. Over the years, he has managed to use it for several constructive services - including lawyers, accountants, couriers, hotels, staff and client incentives, renovations, doctors and even dentists.

"It's company policy that before spending any money, barter availability must be checked first," says Schwendinger, who adds that the number-one benefit of using a barter exchange is that it attracts new clientele. "Essentially, it takes away some cash expenses."

Trish Rogers, a fashion-jewellery manufacturer that sells to Holt Renfrew and Nordstrom's, initially got involved with barter as a way to offset some renovation costs. Since then, she has used the non-cash system for plane tickets, hotel rooms throughout the U.S., shipping supplies, cleaning services, staff meals, car rentals, electrical wiring and even the office water cooler.

"At the moment, barter represents approximately 20% of our total business," says Rogers. "With the larger exchanges like BarterPlus, we have no problem spending the barter dollars. And as a manufacturer, I have a lot of excess stock that would otherwise be useless to me. With barter, I'm now able to turn that into viable currency."

"BARTER IS BETTER!"

2009-01-29T18:24:00.000-08:00

"For Wealth without Greed,
Take only what you Need!"

"AN ESSENTIAL LIVING EXPERIMENT!"

By

Robert Harris Brevig

In recent history a famous philosopher/prophet named Kahlil Gibran said: Trading is thieving unless it is barter. Going back to a book that is familiar to most, a similar quotation arises, The worship of money is the root of all evil. Throughout the realm of higher literature allusions are made toward the effects of money on the moral well being of society.

Nearly a year prior to the time of writing, circumstances found the author in what then appeared to be the throes of an unfortunate financial disaster. Fortune and misfortune being a matter of personal viewpoint at that time. At any rate I was in the unique position of no longer "having" what I had long struggled to acquire, nor was I called upon to begin the quest all over again.

From the conventional standpoint, I stood all but naked before the world. I felt as though I had just landed on our planet earth with virtually nothing more than the knowledge I had thus far accumulated. The planet did not seem hostile and there were ways and means in evidence all around me. The immediate question was, "How do I survive?" A plan began to rapidly unfold, the sensibility of which I leave to the judgement of the reader.

At the outset I was pleasantly amazed by the relief I felt at having allowed the burden of my material responsibilities to drift away. This, in itself, convinced me that I would be foolish to immediately pursue these same trappings all over again. So rather, I adopted a more philosophical attitude and decided to experiment with life.

The plan manifested in the form of a living experiment whereby I would depend entirely upon the barter system for my livelihood. I would exchange whatever I could convince the members of my community was a talent I possessed directly, for whatever goods of theirs I required, thus by-passing the need for currency. In this way I felt that I could still live a constructive life yet without jeopardizing my new found freedom from worry and self-imposed material responsibility.

It was from my new perspective that the Biblical quote: The worship of money is the root of all evil, began to intrigue me. My interpretation of this statement is what is to follow, though the world economic situation at present is shouting this truth so loudly that we refuse to listen.

Needless to say, I required a simple plan of approach which would interest the local goods merchants, so I drafted up a responsible sounding letter of introduction and explanation. Lacking any other sane sounding method, I suddenly became a student of "curiology" in the University of Life. Armed with my letter, a substantial amount of determination and the possibility of a future thesis on the subject of my endeavor, I went to town, so to speak.

After initial suspicions satisfactorily subsided my potential co-experimenters became rather taken with the idea. Of the cross-section of the community I approached about implementing my "system", only one balked completely at the idea. Since that time I have had to turn away opportunities lest I lose my freedom again as a result of "spreading myself too thin".

The whole point of the experiment was to attempt to regain the freedom I enjoyed in my childhood and still be a responsible contributor to the community. To do this, I initially had to examine what my barest needs would be and gradually expand from there.

To begin with I took a job for one day in a local market garden in exchange for produce. I soon found that, value for value, my time spent was rapidly outpacing my produce requirements. In which event I was able to semi-retire and coast for long intervals, though I was benefitting from the gardening knowledge I was acquiring. Previous to this my accommodation needs were met by a bartering arrangement with a friend who owned an old caravan. I then made arrangements to clean the amenities in a local campground for a place to set up a temporary base.

At the same time I managed to work a few hours a week at odd jobs in an orchard in exchange for fruit. A local grocer kindly permitted me a floating account for food staples in return for a bit of maintenance work and sign painting. There never seemed to be a problem in locating the odd repair or maintenance job in exchange for clothing or footwear.

I have been so healthy since I embarked upon this way of life that I have not been pressed to exercise my imagination as to how I would pay my doctor bills, however I shall cross that bridge when I come to it.

People's values differ greatly when dealing outside the realm of finance. For instance, when I am needful of a commodity which a particular person has an abundance of, and since I pose no financial drain for services rendered, more often than not these persons are generous beyond necessity with their goods. Voluntarily offered fringe benefits and "perks" many times double my earning potential. So, as I become braver and expand my endeavors into the area of luxuries my aspirations sometimes allow me the vision of a veritable empire without the tinkle of a coin or the rustle of a note. Perhaps that is a bit ambitious at this stage, but it does appear that at least a relative degree of comfort can be had without money as well as a remarkably rewarding sense of freedom.

I am currently amidst some carpentry repairs in exchange for a two-ton truck and some people on the outskirts of town with an abundant rural section have offered me two acres of land in exchange for baby-sitting their five children for two days a week. This is probably the most adventurous gesture in response to the scheme as yet, but it seems that the more detached and philosophical I become toward life, the more adventurous and generous my co-operants become.

A local seamstress has intrigued me with the proposition of teaching me to make my own clothing in exchange for a bit of work in her garden. If I become adept enough, I may be able to add this to my growing list of capabilities.

One day the butcher offered me a three week supply of meat for my cat if I would do a decorative sign for his shop. I was able to do the lettering well enough but the artwork required was a bit beyond my ability. So, I did what I was able to do and then commissioned an artist friend to complete the job and I assisted him in turn to install a tricky door-frame in his abode. As you begin to see, the system virtually perpetuates itself. As your needs expand, so do your talents.

Realizing and allowing due credit to all the sensible arguments and rationalizations against this approach to life, I am still forced to say, in all honesty, that it works, and it will work for anyone with an imagination to what ever degree they wish to employ it. If a person is doggedly worrying their way through each day with a growing suspicion that the economy is insidiously eroding away from them, they can by a conscious effort of self-discipline, remove that worry and discover a world of freedom and friendship previously undreamed of. One need not go to such drastic extremes as I have done to feel the effects of such an undertaking. It can be tried in any number of little ways. One needn't have a lengthy list of talents to exchange either, though most people have more dormant talent than they themselves are aware of simply because these talents remain hidden when one's energies are only channelled into the acquisition of money. The self-discovery resulting from exploring the potential in barter is quite gratifying in itself.

It is of no avail to say that you have no particular talent or ability. The system will create them for you. I met an old retired (and somewhat bored) gentleman from Southland the other day. He was passed seventy but was so inspired by the idea he said he would go back to school and learn something if need be.

From the very beginning of this experiment I have been impressed by four outstanding lessons: Firstly, the satisfaction I felt by still being able to live by my wits, as it were, simply by putting to good use what inherent abilities I had in exchange for my fundamental needs. Secondly, I was amazed at how much more graciously human relationships seemed to develop when the money barrier was removed. Thirdly, by replacing the false security of the "currency screen" with real goods one loses the fear of being without money, thereby overcoming the dependency factor that it has created. And lastly, what a reward it is to be free enough to do a thing simply for the joy created in doing it rather than struggling doggedly for some dubious compensation.

It might be well to add here also that the problems and worries associated with inflation seem completely alien to this system. As long as the system is kept simple and straight forward one is totally unaffected by economic fluctuations.

Certainly this concept would not appeal to investors, money-lenders and other such speculators. But for those people who are otherwise at the mercy of the above types it can become a comforting cushion.

A voluntary partial reversion to the barter system within the community could soon become an economic necessity. But if a few are willing to experiment sensibly before such an emergency arises, we will find that perhaps we are not degenerating but, in fact, re-pioneering some very sound concepts.

It must be understood that I am not attempting to degrade or disrupt the existing system. I am simply trying to show a possible way in which each of us can create a cushion that will help ease the pressures of approaching economic crisis.

Some plans for the future expansion of the concept as it applies to my own sphere of existence includes: Making the system function in the city, proving the systems worth to a security minded family, acquisition of construction materials for a dwelling and devising an international system for bartering my way around the world.

I feel it is fair to state that I was recently forced to take employment long enough to earn an amount that would satisfy the tax minister for the previous and coming year's taxes.

As to the problem of taxes and my way of life, I am proposing two methods in the hope that the government will agree to one of them. I feel in no way obliged to become a burden to the welfare state nor to withhold my fair share of tax revenue. I maintain an accurate tally of goods, etc., received at retail value and intend to declare this as wages earned at the appropriate time. If this is not found acceptable, I am willing to pay tax on the basis of minimum wage for the potential earnings of my trade. It's a small price to pay to be allowed the freedom to pursue such practical yet philosophical adventures in a country as uniquely pioneering as New Zealand.

Being thrust, momentarily, back into the money scene was at first a bit frustrating, but more and more I became aware that money could serve a very positive and powerful function by effecting conditions which were out of my personal reach or sphere of contact.

With this realization I began to see the esoteric application of money in creating an improved overall environmental situation while keeping one's own personal life untainted by its overpowering influence.

What a relief it is to regain confidence in one's self acquired abilities, something no one or no system can take away, rather than be forced to live at the mercy of a false commodity in times of duress while "real goods" rot in the gardens and warehouses and people go hungry. "What price reality?"

BARTERING

A bartering system already exists in Auckland, known as Traders' Exchange, phone 27-89334, run as a commercially organized co-operative. It was started two and a half years ago by Bill Robertson.

The exchange has two hundred members, trading anything from accountancy services to motel rooms and wedding receptions.

The attraction is that members can increase their business and cut personal and trading expenses at the same time.

Business increases because it makes good sense for exchange members- the bulk of them small to medium sized businesses - to trade with one another rather than going outside and paying cash.

As Bill states "It doesn't add to inflation because you are trading products for products."

Barter Economics - Barter Is Better!

2008-10-11T09:39:00.000-07:00

Barter-Nomics

by Sandra Barron
Marie Claire
April 2006

How can you get what you want without spending a dime? Welcome to the new economy, where trading what you have can get you anything you need-from vintage jewels to a new job. In fact, it's a cultural revolution that might change the way you shop, work, even vacation. Trust us, you can't afford not to read this!

How could barter affect your bottom line? In Strapped: Why America's 20- and 30- Some things Can't Get Ahead, author Tamara Draut says that 60 percent of people ages 18 to 34 are struggling financially because of a combination of student loans, credit-card debt, stagnant wages, and higher costs. Today, a bachelor's degree has a heftier price tag than ever: The average grad racks up $19,300 in student loans (a full $7000 more than B.A.s accrued 10 years ago) and an average of $3200 in credit card debt, says Draut. Adjusted for inflation, that degree now represents a several-thousand-dollar drop in starting salary earning power as compared to your parents. Which all adds up to make bartering "the new black" when it comes to getting you out of the red.

THE BIRTH OF BARTER

There are records of bartering from the days of the American frontier: rum for furs, whale oil for wheat. Barter Island was a trading post off the coast of Alaska. At the Barter Theater in Abingdon, VA, instead of throwing tomatoes, locals traded them to see the show: During the Depression, farmers' produce was accepted for admission. "At Plymouth Rock, the Pilgrims were bargaining with the Native Americans," explains Lawrence J. White of the Stern School of Business at New York University. "That was the entire economy." Then, he explains, we left the farms for factories, and eventually offices, and the inefficiency of direct trade outweighed the "sociable" benefits. As you get to higher levels of economic well-being, opportunity costs increase, and the value of your time becomes greater and greater. Bartering "waxes and wanes" with the economy, he says, adding that the technology we have now means it's simpler than ever to find someone who wants what you have: "It makes it easier to bring individuals together." Timothy C. Mack, president of the World Future Society, points to the formation of "communities of interest"- groups of people who are geographically scattered but now able to come together over the Internet. "The boundaries in these digital communities of interest are dissolved," he says. And just where are these digital communities? On a host of new websites which facilitate trades, attracting people who want to swap their . . . well, everything. Bookins.com will help you trade your discredited A Million Little Pieces for an already-decoded The DaVinci Code. Peerflix.com deals in DVDs. Swaptree.com focuses on books, music, DVDs, and video games, while at SwapThing.com, you'd be hard pressed to think of something someone isn't trying to trade: three-foot neon beer sign, anyone? And while the algorithms powering the sites might be mind-boggling, the philosophy behind them is child's play: "It's playground trading," says Mark Hexamer, vice president of Swaptree. "I give you this; you give me that." But ideally, he says, in addition to connecting virtually, the site will bring people together locally, like swap meets of old. "Eventually, it could get to the point where you meet at the local Starbucks to trade CDs," Hexamer says.

FREE CLOTHES

Fashionistas have long used barter to appear well-heeled, courtesy of a popular party trend involving cocktails, friends, and cast-off clothes. At a "Bitch and Swap," participants arrive with items they no longer want, then play show-and-tell. If a piece elicits multiple cries of "mine!" from guests, the coveted item goes into the "bitch" pile, and contenders take turns trying it on. Then partygoers vote, and the woman who wears it best takes it home. At a recent swap in New York City, Holly Crawford, 31, scored a chic DKNY coat and "a sexy Diane von Furstenberg dress that looks like it was cut just for me." There are many reasons to attend, she says: Closets get cleaned, wardrobes get more svelte, and charities score the leftovers. Plus, she adds, "There's a supportive, ‘you look really good in that' thing going on." That, and the fun of shopping- with none of the guilt. The bitch-and-swap battle cry? A whole new wardrobe for free, natch.

GOT SKILLS? SWAP 'EM!

It's a no-brainer to swap what you have. But savvy swappers know: What you do is a bargaining tool, too. Erika Forster, 25, from Boulder, CO, is one of dreamy electronic-pop band Au Revoir Simone's three keyboardist/ singers: She and bandmates Heather D'Angelo, 26, and Annie Hart, 25, recently traded knitting lessons for singing ones. While on tour in Japan with their friend Antoine Bédard, he asked if the three would sing backup vocals for his solo project, Montag. In return, the singer-songwriter-techie redesigned the band's website: aurevoirsimone.com. The girls retained creative control ("Heather did the drawing," Forster adds), but the barter gave their domain a free upgrade. Kate Lacey, 31, a New York-based photographer, does shoots ranging from high fashion to hard news. Be - cause her assignments are varied, so are her swaps: She's gotten her fee in the form of designer jeans, a spa facial, and a gift certificate to a favorite restaurant. "I did a portrait of a jewelry designer for his website and received my standard day rate's worth of jewelry," she says. "I kept half and gave the other half to my mom for Christmas!" For Lacey, trading off was a win-win. "I never would have spent $200 on a pair of jeans, but they seemed free because I was paying by doing something I love-my photography."

TRADING UP: HOW BARTER CAN GET YOU AHEAD

Don't have the moxie to barter trades on your own? Networking groups make it a formal arrangement. Business Network International, one of the largest with more than 80,000 members worldwide, has been around since 1985. Local chapters, many with about 15 to 20 members, meet weekly. Each of the more than 4000 networking chapters specializes, allowing only one person from any given professional field. So if you're, say, the printer in the group, the other members agree to let you at least make a first bid when the chapter springs for new business cards. And speaking of those, members carry around other members' cards to pass on to appropriate connections. Angela Balsamo, 28, of Pasadena, MD, says networking gave her the courage to quit real estate and do what she loves: designing personalized gift baskets. "The group made it possible. Not just in a business sense, but they were all saying, ‘Try it, do it. If you fall, we'll catch you.'" Now she makes about 100 baskets a month and loves that it's her full-time job. There are also networking groups just for women. Publicist Gabrielle Bernstein, 26, who co-founded the Women's Entrepreneurial Network in New York City, runs about nine net working events per year. One of the most popular is Gift of Service, where members armed with three "service certificates" gather at a trendy bar or restaurant. By evening's end, the business owners have promised to swap services with other participants outside their own fields. "It gives everyone a safe environment to share their skills," she says. An event this spring drew 60 women from WEN's active database of more than 3000 women. A holistic-health counselor offered a nutritional-assessment session, an acupuncturist offered time under her needles, and a photographer proposed portraiture. Bernstein got an "insightful" reading from an astrologer in return for doing a one-time, wide-reaching marketing promotion for her. Handbag designer Cristina Vasiliky bartered a handmade bag for Web design. RachelSimmons, 22, had just graduated with a double major in finance and communications. "I need to make connections, but all I have to offer right now is myself," she said-so she did. "I'm bartering a day of my services as an intern for one piece of clothing by a designer I met tonight." Simmons's hours-for-experience swap is the model for upcoming events, too: A new mentoring event will allow women just kicking off their careers to barter their time to established entrepreneurs. Sharon Hadary, executive director of the Center for Women's Business Research, says her institute's research shows that the most successful entrepreneurs are those whose skills include networking. "Half the battle is having people know you're there," she says. "It's a wonderful way to become visible."

SWAPPING FOR YOUR ENTERTAINMENT

Even the web is now a two-way street. Its newest branches-which some techies call "Web 2.0"-are about letting you connect and contribute as much as they are about serving up info. You've probably already paid a visit to this "new" net without even knowing it: You participate every time you upload a photo to Flickr or Snapfish, tweak your profile on MySpace, or comment on a friend's blog. And each time you download a song, you've got company. At any given moment, almost 10 million people worldwide are trading songs, videos, photos, and software online, according to Big Champagne Online Media Measurement. Now, "swarms" of users- defined as computer users linked solely by the fact that they're all downloading the same video or game at the same time-can pool their bandwidth and use sites like torrentspy.com to download files faster than ever. Picking up where legally embattled Napster left off are file-sharing sites like Morpheus, eDonkey, and Gnu tella, to name just a few. Currently, about 1.6 billion song files are up for grabs simultaneously. And podcasts-sort of like DIY radio shows-are a big part of the mix now, too. They can include anything and everything from political talk radio to Mandarin Chinese lessons. While audio downloads make up the bulk of file swaps, YouTube and Google Video (video.google.com) let users swap their favorite video clips now, too. In fact, it's not hard to imagine a day when you could watch an episode of Lost on your cell phone, then zap it to a friend on your way home.

SHARE AND SHARE ALIKE: A NEW GETAWAY

But bartering isn't just the newest way to get a monitor tan. It can be a more economical way to vacation, too. Sites like Holi-Swaps.com and ExchangeHomes.com, in addition to apartment-swap boards on Craigslist.org, are changing even the way we travel. Think you can't afford to go abroad? Rather than shell out for a pricey hotel room, some pleasure-seekers swap apartments to pare down costs. Lauren Ragland, 30, and her husband, from Brooklyn, NY, traded spaces with a Parisian named Philip. The $1500 they saved in hotel costs bankrolled a side jaunt to Barcelona- but the rewards weren't just monetary: Swapping let them "explore the city less like a tourist," says Ragland. Sure, she worried about giving a stranger her house keys carte blanche, but Philip provided references-and was an ideal houseguest. "The apartment looked better than we left it. My husband still talks about how perfectly our bed was made," she says. Maureen Dempsey, 31, saved $700 in dog-boarding expenses when she and her husband went away for two weeks and found an Irish student to stay in their home-in exchange for free pet-sitting. The unexpected upshot? Their house sitter was, conveniently, a veterinary student. And if you don't have a swanky pad to offer up, sites like Sabbaticalhomes.com and Caretaker.org let you register as a house sitter for people who want someone to keep an eye on their places.

SWAPPING VIEWS: A GLOBAL EXCHANGE

"It's an unspoken policy at many companies that you will never make it to the upper echelons if you haven't worked abroad," says Chris White, executive director of international work-exchange organization AIESEC US, active on 40 U.S. college campuses. Each year, AIESEC sends 300 students and recent grads to internships in 93 countries. And the salary nearly always covers program costs. Andrea Lo, a senior at the University of Texas-Austin, took part in the AIESEC Salaam program, teaching English in Tunisia. "Many of the students asked me about the U.S. and what Americans think of Arabs and Muslims," she says. "They also want to know about me-how I differ from the stereotypes they have about Americans. It allows for peaceful exchange." How about IMing to improve international relations? The latest technology is helping students swap perspectives without leaving campus. Americans for an Informed Democracy (AID) has gathered some 4000 young leaders, from Connecticut to Cairo, over broadband connections for "Face to Face Meetings," in which they discuss global issues from a global perspective. "They also exchange music and IMs," says Seth Green, founder and chair of AID. "It's creating a very small world."

THE FEEL-GOOD PART OF BARTER

So why do we swap stuff to begin with? Well, there's the financial motivation, for starters: It's an easy way to get what you want-without spending a red cent. But then, you have to factor in the "red paper clip effect." Over a year ago, Montreal native Kyle MacDonald, 27, created a blog, OneRedPaperClip.com, announcing his intention to trade one red paper clip until he got . . . a house. While the economics don't add up, the barter-nomics do: Experiments like MacDonald's appeal to people. His paper clip had been traded- and then the new object traded again- 14 times. The simple clip is now worth a house in the town of Kipling, Saskatchewan. The social incentive of the swap can be attributed to an idea referred to as reciprocal altruism. "We're a cooperating species," says Clay Shirky, a faculty member at the Interactive Telecommunications Program at New York University. But we like to help others get what they want, in part because, someday, they might return the favor. Another social benefit of swapping? "People are looking for an excuse to communicate," Shirky adds. "You can't do it generically, but if someone creates an environment where you can step outside of your anonymous self and close a social synapse, you will." So as it turns out, not only does barter pad our bottom line, it seems the process also brings us together- one red paper clip at a time.

SOMETHING BORROWED?

Who says diamonds are forever? At BORROWEDBLING.COM, they're only for as long as you need them. Here, you can borrow knockoffs of red carpet-worthy sparkle for a monthly fee ranging from $30 to $100. BAGBORROWORSTEAL.COM lends you real designer handbags. Their monthly fee is lower, but changes depending on the bags you choose. And both sites come in handy when summer weddings require frequent costume changes! Hot on the heels of barter, at two new fashion-forward websites, membership has its borrowing privileges