Lucas Allen

How to Barter Anything

In these lean times, your only limit to what you can trade (computer help for birthday cakes? artwork for dental work?) is your imagination.

by Hannah Wallace

Step 4: Hammer Out the Details.
Whether you’re bartering one-on-one, through a group, or online, set the terms of the deal up front.

Assess the dollar value of your goods or service. Trading something tangible, like a sofa or a bike? Research the price of similar items on Craigslist.org or in local newspaper classifieds. If you’re swapping a service, figure what you would usually charge, factoring in supplies. Then make an even exchange―for example, a $60 birthday cake for three $20 manicures; eight hours of piano lessons for eight hours of math tutoring.
Don’t forget the tax man. In some cases, the law requires you to report bartering transactions on your tax return. “That doesn’t mean you have to declare swapping babysitting with a neighbor,” says Anthony Burke, an Internal Revenue Service spokesman. “But a barter between businesses is considered taxable income.” If you barter regularly, consult an accountant.
Set the time frame. Decide how long you and your bartering partner will need to fulfill your part of the deal, and set a deadline. If it’s ongoing, set a review date to make sure you’re both still happy.
Put it in writing. Take it from Nina Wurtzel, a New York City photographer who shot and designed a brochure for a local salon in exchange for services: “I wound up revising the brochure several times, but I received only one cut and color.” If the deal will last longer than one exchange, send an e-mail saying, “This is what I will do and what you will do in this time period,” says Amy Belanger, deputy director of Green America, a nonprofit that supports bartering as part of environmental sustainability. But if it is worth a lot of money or is ongoing, she suggests a signed agreement. The hallmark of a successful barter? If both parties are willing to do it again. “Once you start,” says Belanger, “it becomes part of your lifestyle.”