When cash flow is tight, the tit-for-tat exchange of business services can come up as the perfect win/win solution to get what you need or want without actually paying for it in hard cash.
“If you design my business cards, I’ll set up your filing system” sort of thing.
But caveat emptor – be on the lookout for these 'contras' where the deal will fall short of a win for you.
With goods it's fairly straightforward. There is a tangible exchange at an agreed value, e.g. your old laser printer for my spare PC. All cut, dried and agreed.
But when it comes to exchanging your business service for another service, such as marketing, PR, graphic design, massage and so on, it’s a different ball game.
These tips and questions will help you decide whether or not the contra option is one to say yes to.
Is the person offering the exchange, someone whose services you would consider using and paying for?
If not, you may be dissatisfied with your end of the deal and end up going somewhere else where you have to pay for it anyway.
Is the $ per hour charged for service being exchanged pretty equal?
Discuss this up front or it can can lead to one of the contra party being expected to give far more time and effort than the other with resulting misunderstanding and resentment. Be clear whether you are going to swap session for session; x number of sessions for a specific service, or hour for hour. For instance one hour of consulting time at $300 could be considered worth three hour-long massages at $100 each.
When you are offering a service as a contra deal, make sure the person really wants that service
When you are offering a service as a contra deal, make sure the person really wants that service, understands what it is and what commitment may be required of them to take it up. If they are half-hearted, it may not work and you both will end up feeling frustrated and cheated.
Be clear about what the contra does and does not include
For instance there may be time and materials involved. Is the contra time only or does it cover all expenses?
Have a firm agreement
Put it in writing, including a dollar value and time limit for each of you to honour the exchange. This is essential if the contra deal is not simultaneous and you are the one providing goods and/or service first!
“ If you design my business cards, I’ll set up your filing system. ”
Wendy Buckingham provides independent information to assist soloists who want to add coaching skills to their portfolio.
