Bartering in small business is nothing new to you, me or this world. It has gone on for centuries. However, as of lately, people are using the system even more to help leverage their business and to keep cost down; when it comes to the company bottom line.
The one issue with this is so many people don’t know how to barter correctly. They go in only thinking about what they can get from the other person instead of trying to uplift each other. ICB is all about making meaningful connections when it comes to working with others. We want you to do the same in your business.
Your Barter Offer
Your barter offer is extremely important when it comes to bartering with another business. People use to email me all the time saying “Hey Tasha, I would love to barter my services with your services”. An issue ALWAYS arises when I don’t see the value in their offer or service; doen’t seem like an equal trade. More of a Win – Lose situation. No one wants to swap services with another person if they’re not both winning.
Yes, you have a dollar figure attached to your product or services. However this does not mean that the person you want to barter with sees that value. Say you own a website design company. You focus on the service based industry and provide amazing work. Your basic website design package might be worth $500 and this is the package you want to trade with, Megan, the photographer. However, Megan wants the deluxe package at $1500 thinking that is a better value for her $1200 photography package she is giving you. You must break down the package to her to explain why your lesser in value service equals her higher in value service. A $500 service can equal a $1200. People charge differently. You want each other to respect and value each other.
Set Terms + Conditions
If you believe that it is worth doing the barter for your business you’ll want to make sure that you set terms + conditions for this agreement between the two of you. Using the photography and website design example from above. Say you use Ashley’s photography services to get a new headshot and photos for your new company website. You are ecstatic about receiving them. Weeks and months go by. 11 months to be exact have gone by and Megan has now reached out to get her website done because its down time for her. In those 11 months your company has been featured on Mashable, CNN, Techcrunch and more. You have blown up. Your rate is no longer $500. You want to have time lines as well as other important details in place. I have heard horror stories about people wanting to “cash in” on their barter agreement months even years later.
Pay With Social Media
Yes, bartering is when you exchange something with another for free. If you really loved working with them and it was a great experience, then “paying” them a series of tweets or social media compliments can help both of you. One, it will make your relationship stronger; it shows you value and respect each other. Secondly, your social media followers will go check out that persons business and might even support them because of your kind post. It’s all about growing your business right? Then “paying” with social media sharing will do that.
Have you thought about the barter system and how you can use it for your business? What are your thoughts? Is it something you want to do?