Bartering surges in recession as businesses and individuals look to cut costs
Amid the current recession, bartering is booming as businesses and individuals look for ways to cut costs by dealing in goods and services instead of cash.One Massachusetts exchange has seen transactions surge by more than 30 percent. “When recession looms, barter booms,” said Ken Meharg, whose company has more than 1,000 members from the North Shore to Cape Cod. “In a bad economy, for those that understand barter, it will help them weather the storm. Everybody is used to ‘cash is king’ but barter is the next best thing.”
Meharg said members in his company’s network use “trade dollars” to purchase services within the exchange’s network, and some give out bonuses – in “trade dollars” – to employees. For example, a car dealership member gave employees barter dollars, which could be used for services at a dentist in the exchange network, because the dealership didn’t offer dental insurance.
“I think business owners have to rethink, retool and get back to basics,” Meharg said. “Barter is certainly one of those basics.”
The Patriot Ledger, Feb 21, 2009 – Full Story
Tags: barter in the news, barter to conserve cash, patriot ledger