Have you ever heard of the term bartering? Do you know what it refers to? It's not really a word that gets thrown around a lot, plus if you look it up on the internet it can give you a lot of options.
But, related to the economy, this may be more present, especially as a business strategy. But, What really is bartering? What types are there? It is important? Here we reveal everything to you.
What is bartering
We are going to start at the beginning, and that is making it very clear to you what bartering is so that you understand what we are referring to.
Bartering is actually a more than well-known action: bartering. It consists of making an exchange between two people, or two companies, or a company and a person, without a payment method. On the one hand, one gives a product or a service to the other person. And this in turn gives you something similar.
For example, imagine that there are two companies. One produces milk while the other produces dairy.. They can reach an agreement so that the milk company supplies the dairy company, and the dairy company offers its products in exchange, creating a white label for them. Can you understand it better?
Barter is something that has been present, and is, in the world. There are many who opt for this type of relationship with other companies in such a way that goods or services are exchanged without using money. But it stands out because there is a trade that is negotiated and that, for both parties, is fair. Although that does not mean that it will always be like this; It is possible that you find companies or people who give more value to what they exchange than it really does (both high and low).
Types of bartering
Now that it is clearer to you what bartering is, How about we talk to you about the two types of barter? Because yes, we have two great guys with their differences.
simple bartering
Also known as direct. It occurs when two companies decide to exchange goods or services in such a way that both benefit from that barter.
In other words, it is done fairly for both since both benefit. For example, a company that has an empty space and is looking to rent it; and an Internet company that is looking for a place to set up an office to sell its Internet.
The first company could give up that premises in exchange for the second company putting Internet in the office; while the second could house your office on the premises and would only have to provide connectivity to it for it.
complex bartering
Complex or indirect bartering does not have only two companies as "subjects", but to many more. In addition, it is carried out through a specialized platform.
The operation of this type is simple: companies perform a series of services, or send products, to others, and for this they receive credits that they can use to redeem for products or services of other platform subscribers.
To make it clearer, imagine that there is a platform for creatives. They can comply with the requests that are coming in and, therefore, receive credit. When they reach a minimum, with this credit they can in turn request things from others.
We could say that a small community is created in which everyone helps everyone.
Advantages and disadvantages
There is no doubt that bartering can be quite an attractive option, especially since we put aside money or any method of payment to exchange goods and services fairly. But is it as good as it can be intuited? Or does it have a dark background that is unknown?
Among the advantages that we find, the most important are, without a doubt, getting what people need. That is to say, there is a "lack" and that can be satisfied by another person (or company). AND this, in turn, has a "lack" that one can satisfy. Thus, with an agreement, both benefit.
Another benefit is the possibility of stock moving. By sharing it with another company, it does not stand still, nor does it deteriorate or spoil. And if we also add the fact that the economic capital is not touched, but it is we managed to meet the needs of the company, makes this technique quite attractive.
Now, not everything is "rose color". Actually, it has two drawbacks that should not be forgotten.
The first of them is related to the time and effort that you will have to make to find a company that may be interested and with which you connect and can make an agreement. This is not easy at all and it will take you a lot of steps, refusals and failed agreements.
The second drawback has to do with the valuation of goods or services. Sometimes the value that each one gives to theirs does not conform to reality, and that implies more negotiations or even ruptures due to it.
Can this technique be carried out?
We are not going to lie to you. It is not easy to reach agreements between companies that make goods and/or services exchanged between them. At least not among large companies.
But another thing is small and medium-sized companies. Specifically, local businesses or shops, from towns, small cities, etc. They are not so closed-minded and often realize the potential that reaching an agreement with other related companies can offer them.
For example, a yoga service that has natural and ecological creams to soothe pain from another store nearby (and this in turn recommends the company's yoga service). Or a pastry shop that has bread and a bakery where you can buy cakes.
The goal is to get both companies to win, but it also helps them with visibility and brand recognition.
Now that you know about bartering, would you dare to think of companies or individuals that might be interested in what you sell or do and are you interested in something about them? Barter!