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Barter Exchanges Catching On12-01-08 | News

Barter Exchanges Catching On

In light of tight credit, some businesses are turning to barter exchanges to decrease cash outflow and afford needed products. One business owner claims to have experienced $20,000 to $25,000 a year in savings. Landscape Contractors & Superintendents might be able to experience similar benefits.

Shawn Cressman, president of Cressman?EUR??,,????'?????<

These days, though, Cressman sees bartering as a significant way to reduce cash outflow. Last fall he joined the Stroudsburg (Pa.) Merchants Barter Exchange, an association that coordinates and organizes trading of products and services among its more than 10,000 business members. In September, when the transmission blew on one of the firm?EUR??,,????'?????<

In recent years, bartering has gained currency as a relatively easy path for small outfits to attain goods and services without having to dig into their coffers. It has also become a successful channel to attract new customers and expand one?EUR??,,????'?????<

On the Upswing

And now, with banks cutting back on credit lines or shutting them down altogether, the use of barter has gained renewed momentum. Notably, Thailand, the world?EUR??,,????'?????<

Tom McDowell, executive director of NATE, says he has seen a 10% to 12% increase in new clients joining organized barter exchanges. ?EUR??,,????'?????<

Barter exchanges (BusinessWeek SmallBiz, 4/16/08) are fee-based membership groups. Typically, barter dollars are issued when a member performs a service or offers a product that can then be used to purchase goods or services of another member within the exchange. (The exchange receives a commission on the ?EUR??,,????'?????<