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  • #990138
    Nick the Startup guy
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    Seeing as the team at FS are not keen on us offering contra deals, does anyone know if there is a forum that facilitates this?

    I’ve heard of Bartercard is one way but is this the only kind of organisation that is worth joining to swap your goods and services?

    #1175641
    MissSassy
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    I hope this doesn’t offend but bartering or offering contra deals is no way for people to operate a business.

    It doesn’t pay the bills and it probably won’t get you more paying clients either.

    Small or micro business can not afford this type of strategy in 2015 when life and business costs money.

    Pay for a good days work and ask a good pay for a good days work!

    #1175642
    LucasArthur
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    From a personal perspective, it also proves increasingly difficult to find a true contra/barter deal where both parties are quite happy.. One tends to be ok and the other can feel taken advantage of :(

    Along with lovely Kel’s comments, the time involved in negotiating such ‘deals’ and trying to work through them tends to be so time consuming and tends to mitigate any benefits potentially received.. Understanding that service industries, such as photographers, may benefit as its labour related a little more than product related it will be interesting to see others point of view on this (even though you didnt ask this)…

    Cheers
    Jason

    ps.. hows the workspace going?

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1175643
    bb1
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    MissSassy, post: 204437 wrote:
    I hope this doesn’t offend but bartering or offering contra deals is no way for people to operate a business.

    It doesn’t pay the bills and it probably won’t get you more paying clients either.

    Small or micro business can not afford this type of strategy in 2015 when life and business costs money.

    Pay for a good days work and ask a good pay for a good days work!

    Yes and no. Sorry but at the end of the day, all that we are doing when we get paid in hard cash, is getting a barter or contra deal. I will give you $50.00 if you give me this service. Whats the difference to saying I will give (sell) you a widget, if you mow my lawn. We both get a benefit.

    Don’t get me wrong, I dont barter or do contra deals in the sense of it, and all my work is for money. And I find things such as Bartercard a concern. But money is just another form of bartering.

    #1175644
    Greg_M
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    I’ve spent my life in an industry (construction) that runs on “contras”, generally I think they can work (with some caveats).

    e.g. Client/associate/friend of 20 years standing couldn’t pay his bill, no point cracking it … I just happened to be connecting a new sewer, so I took his 4.5 ton excavator for a few days. He cut out his bill at his full “bare hire” rate, I didn’t have to find the cash to hire a machine, or float it. The exchange took place at our normal agreed $ rates – minus the paperwork. Win, win IMO.

    Over the years I’ve done heaps of contras on labour and equipment and didn’t see any losers, them or me.

    Having said all that, I don’t think it works easily across industries, too hard to equate value and keep track. You also need a solid relationship (trust) with those you do it with.

    As mentioned, actual “products” or “widgets” would be hard to do easily.

    Formal exchanges like Bartercard don’t appeal for all the reasons already listed.

    #1175645
    Nick the Startup guy
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    Hi Jason, and thanks Kelly and others who have responded.

    Kelly, I agree, all business needs cash to operate but when you’re a startup with no money and need some help with things like IT networks or perhaps some promotion or anything your business needs that may otherwise cost money, I think some contra work is beneficial.

    For example, I’ve just done a contra deal with a travel writer for The Australian newspaper. She’s setting up her own small business with 3 others. I’ve offered her 4 weeks in my co-working space in exchange for an article about my business in her newspaper, hopefully the weekend edition. For me, an article in The Australian is worth way more to me in promotional terms than the cost of seat. During that 4 weeks, I’ll be able to collaborate with one of Australia’s top writers.

    Jason,
    The workspace is coming along nicely, thank you for asking. Only a few more things to do and I’ll be ready to open in the new year.

    Nick

    SimplyReplica, post: 204440 wrote:
    From a personal perspective, it also proves increasingly difficult to find a true contra/barter deal where both parties are quite happy.. One tends to be ok and the other can feel taken advantage of :(

    Along with lovely Kel’s comments, the time involved in negotiating such ‘deals’ and trying to work through them tends to be so time consuming and tends to mitigate any benefits potentially received.. Understanding that service industries, such as photographers, may benefit as its labour related a little more than product related it will be interesting to see others point of view on this (even though you didnt ask this)…

    Cheers
    Jason

    ps.. hows the workspace going?

    #1175646
    MissSassy
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    Starting up without enough capital to sustain is the number one reason that small business fails.

    Sure there can be times when it makes sense to barter

    I don’t think your example of The Australian Newspaper would be approved of by her boss somehow either!

    #1175647
    MikeDav
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    I know a few people who use Bartercard and they are happy with the way it works. They have been around for quite a while now so something must be working.

    I agree that you can’t base your business on barter however it could work for a small % of your business.

    #1175648
    ProjectMan
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    many many years ago, I helped set up a bartering group in Brunswick, based at Ceres. It was a great idea, and we had a monetry value associated to it. it was given another name, but members would pay for services this way. I think that a bartering system is good, as long as the value proposition is right.

    so if you have a mate that the mowed your lawn for say 50 discs, you could use those 50 discs to pay for a massage, and they in turn might buy some homegrown vegies and so forth.

    Batercard is different – its a commercially operated, and costs more money to join and to use, than a local community batering system.

    If I could, I would use a barter system, but the bank wants money for the mortgage, not discs, so I need to keep bringing in the money.

    #1175649
    SourceSmart
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    I have also thought there are times where this would work and other times not.

    Like another person said, i also had someone wanted to use my services and i needed his so it worked out well in that case.. He didn’t have the money to employ my services at the time so i suggest we barter, the value of his service to mine. not hour to hour as someones hour could be worth more than others.

    I think ProjectMan previous barter group is a good idea rather than the more commercial sites. Im sure also there is alot of work to admin the program.

    Warren.

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