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Discussion How do you handle this type of deal?

Ray Miller

Ray Miller

Owner
I was looking through some of the old threads and couldn't find much so I was wondering how others might handle working with your customers on a bartering type of scale? From time to time people will ask me if I need this for that and most of the time if they have something I need or want, I'll do it.
Do you handle it the professional/honest way and barter for the goods and report it and pay the taxes on it or just shake hands and be done with it?
I've done both. Most of the time I feel like I made out like a bandit and I've already felt that I didn't do good.

Any input? :thankyou:
 
Notarealsignguy

Notarealsignguy

Arial - it's almost helvetica
Z SIGNS said:
Bartering does not usually work out. One or the other feels like they did not get a good deal. I always suggest this when it comes up.

You pay me what I want for the signs and I'll pay you for what you have to offer.
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I totally disagree. You have to find the right kind of people to barter with, not everyone is a good candidate. Some people can and others get their panties in a wad. I do it all of the time and it never comes down to the retail price of the job, if someone wants to keep tabs then it will not work out. That is just buying stuff on credit, not bartering. I want something, they want something and we call it a day, its not about who makes out better. If it involves buying materials that aren't cheap or stocked, then they pay for materials and vice versa.
 
Texas_Signmaker

Texas_Signmaker

Very Active Signmaker
I tried to barter once and it didn't go through. I had to put small decals on a fleet of rental cars at Chevy dealership....tried to trade it for a new Silverado but they didn't go for that.
 
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litewave

New Member
When it comes to negotiations on price not swapping this for that....

Once some wise chap told me you have to pretend your "reluctantly accepting a deal" or almost crying to make the other barterer feel good.

Obviously start with a high price in the 1st place if you need to barter because otherwise faced with a good negotiator you will loose (and then you might really cry).

Some cultures love to barter. Others don't entertain it.
 
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V

Val47

New Member
litewave said:
When it comes to negotiations on price not swapping this for that....

Once some wise chap told me you have to pretend your "reluctantly accepting a deal" or almost crying to make the other barterer feel good.

Obviously start with a high price in the 1st place if you need to barter because otherwise faced with a good negotiator you will loose (and then you might really cry).

Some cultures love to barter. Others don't entertain it.
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I think this is about trade vs trade. within a reasonable wholesale cost. it can be very beneficial to both parties. the key is to do this with people you have already worked with.
 
V

Val47

New Member
Years ago... I had a great deal with a local brewery/bar/restaurant. I was their graphic designer for hire, in trade for a standing tab. I did work for them, I would frequent the place which was two blocks away from work. have lunch, after work beers... they also had live entertainment, so i helped with flyers. Sometimes knew the band that played. Worked the door (once) for a major event in our city. Hoopfest really brings A-holes to our town.
I had an open tab. It was just a given all the employees knew it. After about a year into our arrangement, they weren't managing things well. They were filing bankruptcy, and wanted to have a meeting to settle up. I was terrified. I thought I had eaten and drank WAY more than I had done work for them. After about an hour of discussions, dinner, drinks - turns out they were worried they owed ME. ha ha, we called it a draw, and it was an end to a good time.
 
visual800

visual800

Active Member
Bartering is awesome, gotta keep up with paperwork and totals. my cousin owns mechanic shop we barter alot and I keep up with paperwork and invoices from him.
 
Johnny Best

Johnny Best

Active Member
I love to barter, it is a way to do business that goes back a long time. You bring your fruits and vegetables to the local knight and he protects you when the Mongols invaded.
 
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Reveal1

New Member
Isn't bartering the same as exchanging money for goods? Besides cheating the tax man, what's the advantage?
 
Pewter0000

Pewter0000

Graphic Design | Production
I think this is a real job-by-job decision. We have had people come in looking for little signs or design in exchange for whatever they can offer, and it's not bad. But when it starts getting more complex - ie, installers involved, ordering special materials, anything that we've got to go out of our way to spend money on - that's when the deal doesn't usually work out our way.

So basically, we might be flexible if it's something we can provide directly from our inventory or labour, but we're not going to be spending to give you a deal unless the trade is really worth it.

We had someone offer us a bunch of lobster once for a wrap... we didn't take that job.
 
Jester1167

Jester1167

Premium Subscriber
I was taught that the best way is to trade full retail for full retail, but it really comes down to making sure you both feel good about the deal.
 
Gino

Gino

Premium Subscriber
Have done it many times over the years. My best one was around 1986. Just got my Gerber Sprint system.....WITH A SCREEN and I needed a snowblower. I had the cost of a double sided duraply 4' x 6' and 2pcs 1' x 4' 1-sided and lettered a guys truck in exchange for a brand new tank tread snowblower. I had maybe $100 invested in the board, paint and vinyl. Maybe 2 or 3 hours of time (and I'm cheap labor) but he installed it all. I got a $1,400 tank tread powered machine. I still use it and just had it worked on. After 35 years, it took a belt and a rubber friction wheel. Good for another 35 years.


shop snow blower.jpg
 
Pewter0000

Pewter0000

Graphic Design | Production
Reveal1 said:
Isn't bartering the same as exchanging money for goods? Besides cheating the tax man, what's the advantage?
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I think the tax thing is one part of it, but another part is getting things you want or need easier or with fewer steps. We're in the shop making signs, and we make them well and fast and we have all the supplies here. Meanwhile, someone else does their thing well and fast. Instead of both sides doing all the math on the quotes, and waiting for approvals, and then waiting for payments... skip all the steps and say "sure, we'll just trade".

That's why it doesn't always work out - it's not always fair. You'll have to use your judgment to pick jobs you think work best. Some people barter for convenience and since it feels nice, while other people barter to try and get away with ripping you off.
 
R

Reveal1

New Member
KatePhillips said:
I think the tax thing is one part of it, but another part is getting things you want or need easier or with fewer steps. We're in the shop making signs, and we make them well and fast and we have all the supplies here. Meanwhile, someone else does their thing well and fast. Instead of both sides doing all the math on the quotes, and waiting for approvals, and then waiting for payments... skip all the steps and say "sure, we'll just trade".

That's why it doesn't always work out - it's not always fair. You'll have to use your judgment to pick jobs you think work best. Some people barter for convenience and since it feels nice, while other people barter to try and get away with ripping you off.
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Thanks Kate f - the only thing I've bartered is baseball cards when I was young. Now I just buy the ones I want and sell the ones I don't. Can see bartering working on personal items, i.e. my junk is another man's treasure, but seems inefficient in business. Have had a couple of offers for trade for signs , and politely suggested why don't we just trade cash. They always buy the signs.
 
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