Costco Connection - June 2010

I need a Web site for my restaurant.

I need a restaurant for a business dinner.

the world, with the click of a mouse.

Successful one-to-one trading relies on putting together relationships with the same standards, expectations and contractual detail as for any cash client. It’s a good idea to put agreements in writing, outlining dollar amounts and specific expectations in case there’s a dispute.

As long as both parties believe they are getting their money’s worth, and each is providing the same value and workmanship as to a cash customer, one-on-one trading is fairly easy to orchestrate.

MEDIA BAKERY

Barter exchanges

A more formal approach to trading is
through barter exchanges. Barter exchanges
trade credits. ;e lawn-care profes-
sional may decide to eat out at a
restaurant, hire an accountant, have
his truck repaired or use barter as part
of an employee bene;ts program.

Steven Van Yoder is an author and freelance writer ( www.getslightlyfamous.com).

GETTY

I need flowers for my daughter’s wedding.

are “mini economies” comprising member businesses. ;ey provide a barter currency, or trade credits, and, for a small commission, promote commerce between their members and provide monthly statements of all transactions (see “Joining a barter exchange”).

Barter exchanges overcome the limitations of one-to-one trading. Barter credits can be used like cash with other exchange members, when, where and with whom you desire.

For example, a lawn-care professional needing a Web site could contact a Web developer in his barter exchange to utilize his earned

Local currencies

A relatively new twist on local bartering is the advent of Time Banks, which o;er individuals and businesses a community-ori-ented, time-based currency where the unit of exchange is the man-hour. ;at hour goes into a Time Bank as a Time Dollar, which can be spent with other Time Bank members.

Membership is expanding in the more than 200 Time Banks around the country, which are often grafted onto nonprofits, churches or businesses. Hour Exchange Portland (HEP), in Maine, for example, allows members to swap computer help, legal services, meals, pet sitting and more. HEP has more than 700 members and provides more than 1,600 services.

Common Security Clubs are another new concept enabling individuals to form local economic support networks to deal with the economic crisis. Clubs can be launched by anyone and are based on a free curriculum that can be used by churches, neighborhood organizations, unions—anywhere 20 people

IF YOU JOIN A barter exchange, expect to pay an initiation fee (typically $100 to $500), annual dues and a 10 to 15 percent commission on every trade. In return, the exchange will provide ongoing account maintenance, a monthly statement, checks or debit cards and a membership directory.

Before you join a barter exchange, review a listing of active member businesses to ensure the exchange can ;ll your needs. Determine that the exchange fosters a strong barter “economy” by adding new members on a regular basis. Insist that a representative be assigned to your account for added personal service. Finally, ask to be issued a line of credit so you can begin trading right away.

For a list of barter exchanges in your area, and to compare the services and fees of other exchanges in your community, contact the International Reciprocal Trade Association, or visit their Web site ( www. irta.com) and type “member directory” in the search box.—SVY