I just recently accomplished an agreement with a gentleman to have some partition wall built, and paying his labor costs with food credits. He is a frequent and enthusiastic cutomer, so it worked out great for both of us. He gets to eat without coming out of pocket, spent a free day earning fod credits, and gets some word of mouth for his good work. I paid for materials, and no cash outlay to get a much needed wall built. We are going to negotiate some more construction work for mix of cash and credits.
Anyone else finding a success negotiating this sort of work with professionals who have work gaps and looking to make use of their ‘down time’?
I do it all the time. Since I work so much and don’t have time to change oil in the car I give an Large pizza to a local shop and they change it for me. I also pay my Chiropractor with pizzas for his event. Its a great way to get around and we do it all the time that way.
We have done it with a few things over the years…sometimes it has worked out great other times it has not. What we finally did was we printed up business card size cards they are worth $5.00 we trade those. When they go to redeem the cards it is all or nothing…meaning if there bill is 4.56 they don’t get change if it were 6.00 they give a card and a buck (or two cards and lose the difference) They can’t be used for a tip.
It has worked out well.
My husband got a tooth fixed and we gave the guy a big ol box of them…there were a lot of cards…but he gives them away to employees and customers…we also have done it with phone book ads…
Back in the day when we did it haphazard a guy came in everyday with a few others and it was always free it was fine for a few months but over time we got taken advantage of and then the guy closed up shop and we never got any services. So be clear as the to rules so everyone feels good about it…down the road.
I do trade but with a difference. It all goes through the proper book keeping process. For example I buy bottled water for the staff water cooler. I get an invoice from the water depot and show it as an accounts payable then when he buys pizza from me I show it as a payment made.
I use this process to pay the lease payments on my jeep, the electrician, movie rentals, etc. Now you may ask why would you run every thing through your books? My simple answer is because that is the legal way to conduct business. I believe in obeying the law and paying what I owe.
Daddio is correct. Bartering is still taxable. Though to be frank, not paying taxes is the primary reason most businesses barter.
Not paying taxes is the primary reason some businesses are in business lol