Bartering goods and services is can be a very tricky thing and cost you far more than the goods you are exchanging. I have observed several of my friends enter into barter agreements and destroy their relationship with the person they are trading with. This article will help you think clearly about how to barter so that both parties will win.
YOUR OBJECTIVE: to complete the arrangement and make the other party feel good about the deal. Loose the idea that you should get the maximum and rip off the other party. If you detect the other party has this mentality politely decline. Starting out, make an agreement that both parties feel good about.
MY EXPERIENCE: I am a skilled painter. Recently my wife and I were looking for some electronic equipment. I found what we were looking for in some local classified advertisements. The seller listed no price but said to make an offer. I made him an offer. He made a counter offer which was greater than my budget and I respectfully declined. He then mentioned that he was looking for some painting services and asked if I would consider painting part of his house in exchange for the equipment. Initially I was nervous because I did not want to enter a deal and finish it with bad feelings and irritation toward one another. So I proposed that he determine a fair market value for the equipment and I would give him a competitive bid for painting part of his house. We came up with reasonable prices for his equipment and my services and entered into an agreement. Both he and I had the mentality that we wanted to be fair toward one another. As I painted my goal was t o do such a good job for him that he would feel like he was getting the better end of the deal. As I finished the work he actually said he felt like he was getting the best end of the deal. I too felt like I was getting the better end of the deal. We completed the agreement with good feelings toward one another and felt good about the deal as a whole.
YOUR SERVICS: if you are the one providing services do your absolute best. Price your services at the same rate you price them for any other client. Then go the extra mile. A little extra work will impress your client. Make your client feel like he is getting the best part of the deal.
THE DANGER: in several barter situations I have observed the fundamental flaw in the thinking in one or both parties involved is either that one's own goods or services are superior to the others goods or that one should work the deal and get the greater advantage.
Several hundred years ago in America the mode of income was the barter system. The early settlers knew that their survival was dependent on their friends, family, and business relationships. I suspect that in their dealings with others in bartering their mindset was to trade fairly and build relationships.
THE BOTTOM LINE: make a fair and agreeable deal. Make sure both parties are committed to fairness. Go the extra mile. Finish the agreement as friends.
YOUR GOODS: if you are the one with the goods, be reasonable about your expectations. You may feel anxiety wondering if the person you are bartering with has the ability to do good work or is just a rookie. It is entirely reasonable to ask for several references. As the tradesman looks at the work to be done get to know him to determine if you can trust him to do a fair job. A skilled tradesman can accomplish your tasks many times faster than you can. Just because he does it so quickly does not mean you should expect him to do more. One of the things that really irritates craftsmen is clients who keep adding little things and expecting not to pay for them. When the services are rendered hand over the goods cheerfully.
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