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The University of Illinois Extension offers these tips for successful bartering:
When bartering services, know who will supply needed materials. Usually it is the receiver, but the provider, in some cases, may have the needed tools, such as a lawn mower. When materials must be purchased, work together to determine specifics, cost limits, quality of materials, deadlines and other details that could become irritants.
Don't assume anything. Be sure to agree on the details of exactly what will be done. Be sure expectations are clear to all. In some cases a contract or written agreement may be a good idea.
When you provide a service:
Be sure you are clear on details of expected service. Don't take on tasks that you cannot do well.
Keep the receiver well-informed of your progress. Inform the receiver also of any problems or delays.
Decide when the service is to be provided. If needed by a certain date, be sure you have enough time to do it.
If you receive income from bartering, you may be required to pay taxes on this income. Refer to IRS Publication 525, Taxable and Nontaxable Income, for more information.
If you receive a service:
Carefully explain what you want and supervise the work. Don't be caught with a completed job that is not what you expected.
Check the provider's qualifications.
Make sure the delivery of service is convenient and within the time you want the work done.
If the task requires your presence or help, make sure you are aware of this.
The Associated Press
Boise beautician Heather Wood has traded haircuts and pedicures for years of day care, children's clothes, a paint job for her car, an oil change, a set of professional portraits for her family and dental cleaning.
Bartering - the trading of goods or services without using cash - is making a comeback in a troubled economy. It can be as simple as trading baby-sitting with another family or as complex as an exchange with strangers assisted by one of several Web sites that have sprung up to connect barterers.
"It's fun, and it builds a whole different kind of a relationship," said Wood, who has five children and works at Caritta Salon at 808 W. Bannock St. in Downtown Boise. "They're getting what they want, and I'm getting what I want. I would much rather do that than make cash most of the time."
Bartering ads on Craigslist have about doubled since last year, said Susan MacTavish Best, a spokeswoman for the online classified advertising service.
Traffic is also up at local organizations like the Midwest Barter Exchange, a Kalamazoo, Mich.-based outfit that acts as a go-between for about 1,000 business clients.
"Before, we were out beating the bushes trying to get people to join, and now they're calling us," said Lance Dorsey, a customer service representative for the exchange.
These days, making cash isn't always an option, so many have decided it is worth the effort to trade, say, an outgrown kid's bike for a neighbor's lawnmower, or a massage for some gardening supplies.
"I'm finding it a little bit difficult to sell anything right now," said Jeremy Kildow of Nampa, who chose bartering when he decided to get rid of a $1,000 camera, a kayak, a stainless-steel kitchen range and other items.
Kildow put his stuff on the Boise-area Craigslist site under "barter" and suggested horses, pack mules, a four-wheel-drive truck, a computer or a flat-screen TV in exchange. So far, he's had an offer of a truck, some computers, and a wedding ring.
Bartering can be less expensive than buying because there are few overhead costs for rent or staff. However, not all costs are eliminated. The IRS considers barter dollars as identical to real currency for tax reporting, and barterers must obtain a special form, the 1099-B.
But bartering can also be more fun than laying down cash.
"The human element and the relationship between buyers and sellers becomes more important when we get involved in bartering transactions," said Gary Forman, president of a company called Dollar Stretcher that publishes methods for saving money. "I'm not sure we don't have some longing for that."
The quirky, independent aspect of bartering is what Vermont resident Matthew Stewart likes. He got his Honda motorcycle in a trade with a stranger through Craigslist. Stewart gave up a wood-burning cook stove he'd acquired but didn't need.
"If somebody wants something that you've got, there's probably a good chance they've got something you want that they don't want," Stewart said. "With bartering you end up with something interesting."
Of course, there are no signs that bartering will ever catch up with cash.
Professor Andrew Whinston at the University of Texas-Austin, who has written about bartering, said the Internet has made bartering easier, just as eBay has made it easier to sell things that used to sit in the attic for years.
He doesn't see bartering as something that will "take over the world," but said nobody knows for sure what's going to happen next with the markets that rely on credit and currency.
"Maybe if the economy goes totally down the drain, we'll all be bartering," said Whinston. "I'll be selling copies of my articles in academic journals for a meal at a restaurant."
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