Barter Success

What can be obtained through barter is a subset of what is offered in the cash economy - everything available via barter is available with cash, but not the reverse. That's why those successful with barter are more flexible and open minded than most consumers.

Sometimes it is necessary to compromise. For example, your dream might be a computer with a 90 megahertz chip, but you may have to settle for one with 60 megahertz. Be patient as well. Don't expect that everything you want will be immediately available. Jeffrey H. Dorfman, president of Electronic Technical Services, Inc., in Trumbull, Connecticut, traded for a hot tub through barter, but had to wait a year and a half to get it.

Recognize the position of others. Dorfman, who sells used computer equipment, enjoys a high profit margin. He says that when he wants
something with a low profit margin, he's willing to let the other guy charge him more in trade dollars.

For example, suppose you sell a gizmo for $100 that costs you $25, and want someone else's widget that sells for $100 but costs him $75. If you let that person charge you $125, he will enjoy a decent profit margin and therefore be more likely to trade, while you still enjoy a healthy discount. This is how you can encourage trading.

Always look for ways to spend trade dollars rather than cash. If not sensitive to the nuances of barter, you'll miss opportunities and end up
getting little out of it. "It's like joining the Chamber of Commerce," says Stuart. "If you don't go to the mixers or luncheons, you won't derive
any benefit." Similarly, you must actively participate in the barter community to fully enjoy its advantages.