Barter-network members tend to shop within the system first, and satisfied barter customers make referrals to cash customers. Hotels barter rooms and airlines trade seats that would otherwise go unused. Jerry Trombo turns to barter jobs when his cash business is slow, so extra printing capacity isn t wasted. Small businesses often find it easier to obtain credit through an exchange than through a bank. Though exchanges may require applicants to supply credit reports and collateral, they tend to evaluate businesses differently than banks do, focusing on prospects for selling within the network.
Business owners can also use barter dollars as incentives and benefits for employees.
A growing number of small businesses that can t afford a health plan, for example, are arranging trades with doctors who are exchange members to provide services to employees. When you become a member, the barter exchange advertises your product or service to other members. After making the introductions, though, the exchange usually bows out. Negotiating details of the deal is your responsibility, just as if money were changing hands. Most exchanges use a credit-debit system to keep track of both sides of a trade.