Bartering is not new. The practice of exchanging one’s goods and services with another is centuries old. Long before currency came into existence, the oldest form of commerce would see humans exchange livestock for grain, or valuable salt for services. Perhaps now, with many people losing trade and work due to the ongoing COVID-19 crisis, it is time for us to focus our energies back to the barter again.
Until 600bce when coin currency first came in to play, cashless bartering was the only form of trade. In recent times, we saw bartering return on a larger scale during the 1930s Great Depression. The lack of money increased the need for people to exchange food, goods and services within their communities. Therefore, while the economy grounded to a halt, humans found a way to ‘keep on keeping on’.
Fast forward to the 21st century, even before COVID-19 threw a humongous viral spanner in the global works, the exchange of goods and services still exists. Small businesses have been known to kick start their work by offering an exchange of their services for another. To build his design portfolio, John the graphic designer might design logos for his friend Penny’s new restaurant. She in turn may invite John, his wife and kids in for a family meal. Sarah may offer her digital marketing expertise to help Gary launch his handyman services business. Gary returns the gig by fixing her broken fence and so on.
“I’ve always been a huge fan of bartering, or trading services and goods if you will. It probably comes from my growing up on a family farm and coming from a migrant Greek Australian family. If someone had a surplus of peaches and you had extra eggs, of course you would trade. I’ve seen my family do that for years (and continue to do so) and when I started out CLS I did offer and still do on occasion contracts and agreements to trade with others” says our founder Chrissy.
Bartering between business’ (aka the B2B) isn’t new though. If you’ve been around the traps for a bit, chances are at some point someone may have asked if you accepted “Bartercard”? What is it exactly? Read on…
Bartercard provides business opportunities to members by converting unutilised trading capacity and excess inventory into business opportunities with new customers. It’s world-leading, innovative trade exchange system allows its thousands of members in Australia to benefit from the cashless economy of bartering. Bartercard aims to increase a member’s business by 10 – 15% and increase their cash flow.
How Bartercard works…simplified: The Bartercard concept uses an alternative, electronic currency (trade dollars) that is exchanged between members to pay for goods and services, instead of paying cash. Members then use these trade dollars to offset cash expenses within their business.
Trade dollars are a well-recognised and accepted method of payment in Australia. One trade dollar is equivalent to one Australian dollar for all accounting and taxation purposes.
But what is Bartercard? For accounting purposes, Bartercard operates in the same way as a credit card or another bank account. There is no difference between cash and trade dollars, with sales being recorded as income and purchases being recorded as an expense or asset.
There are many reasons why businesses join Bartercard, some benefits include:
- Attract new customers
- Manage cash flow with an advance on your trade dollar sales
- Utilise excess stock and increase occupancy
- Generate new business
- Rewarding staff.
The downside is that often you can only use those businesses that are in the directory, and sometimes you can get bumped if a full paying “client” or customer comes along from the supplier. However for some businesses and start ups, it’s a great solution and one that has it’s benefits.
Now, in 2020, we are presented with an obstacle that is challenging businesses in every sector, and it is relentless. Due to COVID-19 we are experiencing widespread distress across many industries, the event and hospitality space that CLS is so familiar with being one of the hardest hit. Jobs have been cut, casual and contract staff let go and some businesses have shut their doors as society continues to social distance and move in and out of lockdown.
Will this be the year we see another spike in bartering services? If so, is this such a bad thing? One must focus on the good in the times of bad. Our society has been crying out to bring back the community spirit. To revert back to the times our parents and grandparents talk so fondly of. When one would knock on the neighbour’s door to borrow a cup of sugar. When parents would swap their outgrown children’s clothes with friends. When Bob would pop over to see Fred and fix his car. In recent times, we have become so secluded in our own busy little bubbles that we’ve forgotten to check on our neighbours, to offer help to those in the community who need it most. We’re also reluctant, maybe too proud to ask for help ourselves.
The COVID-19 stockpiling situation saw Facebook community groups pop up giving those the chance to swap groceries and necessities as stories unfolded of people finding it difficult to obtain certain foods. Note: if you are struggling to access groceries yourselves during this difficult time, the following services may help:
- Y Waste
- SecondBite
- Foodbank
- FairShare
- The Sikh Volunteers Australia (Melbourne South East only)
We’ve also seen an increase in community gardens popping up (even in densely populated city areas – like the Kings Cross Community Garden in Chrissy’s locale. This is a great way for people to take what they need, connect with others. We also have seen balcony gardens thrive and people give away items they’ve a surplus of.
Perhaps now, during these uncertain times, we should reconsider bartering as an option to get us through. This could be done for trades and services in the same way communities are sharing foods and goods. In doing so, perhaps we will see the return of the community spirit that our society so desperately needs.
Will 2020 become The Year of the Barter? Time will certainly tell and as always let us know what you think, by dropping us a comment below.