Let's Make a Deal
by Anita Pagliasso
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The dentist must have remembered the look of total shock on my
face when presented with my bill because when I went back for the first of a
series of appointments, she started mentioning that her and her family did a
lot of traveling and perhaps we could work out a deal or exchange travel for
her services. I was a bit surprised by her proposal and actually had to think
about this for a moment to see exactly how this might work beneficially for both
of us.
Hmmm….She was offering a proposal to barter services. This is a practice
actually dates back to humankind’s earliest days and was a common practice
among businesses and commerce. Of course we weren’t going to be trading
skins for food as our ancestors did, but it was an interesting concept none the
less.
I went online to do some research about bartering and found that globally,
over 470,000 businesses are involved in Barter. It is so big that there are numerous “Bartering
Clubs” that boast to having thousands of members. It is also estimated
that 65% of Fortune 500 companies engage in bartering to one degree or another.
In fact on one site it lists “travel” as on of the top categories
for bartering. It also appears that the hoteliers and airlines are very big into
bartering empty hotel rooms and airline seats in exchange for other goods and
services.
After thinking about the dentist’s proposal I realized that if I booked
her vacation with one of my preferred suppliers I could conceivably save 15%
or more on my dental services, which would be my commission rate.
I started thinking who else might want to make this kind of an arrangement?
Obviously it would have to be someone who owned their own business or had the
authority to make these types of agreements. How about your computer repair person,
gardener, attorney, financial planner or tax consultant …the list goes
on.
Speaking of tax consultants, there is a word of caution about bartering arrangements
with regard to the IRS. Even though no money may have changed hands, the IRS
considers goods or services received through bartering as income for tax reporting
purposes. The goods or services must be included as income at the fair market
value on the date received.
When trying to run a small business and keep expenses for services and equipment
down, this may be an option. Consider your talents and labor among your assets.
There may be an opportunity to swap services with someone who has what you need,
and especially if their business is in the same situation.
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