LAS VEGAS,
NEVADA — For wife and
husband Amanda and Shannon Barr, marriage brought with it a whole set of
new, and sometimes expensive, responsibilities. But it didn't come with
additional finances.
"We needed things, but we didn't have money," says Amanda Barr, who
married her husband five years ago. "We noticed other people needed
things, but they didn't have money." Instead of going without, they
turned to an ancient custom that, over the past few months, has become
increasingly popular across the nation: The Barrs started trading their
stuff for other people's stuff.
At first, they bartered with people they encountered through work or
friends. Recently, the couple have joined a growing number of people who
are using Web sites such as craigslist to offer their services or goods in
exchange for anything of value.
Amanda Barr sits in her garage next
to the 201C Banshee quad cycle she bartered for.
According to a craigslist spokeswoman, the
site has seen a "significant growth in our bartering section as
craigslist users get creative to keep their cash in their wallets during
this troubling economy." In November, 1,681 Las Vegans posted ads on
craigslist offering trades. That's up from November 2007 when 1,081 ads
were posted.
The Barrs placed an ad in December offering mechanical work,
housecleaning, welding, yardwork or massage to anyone who had a Barbie
Power Wheels Jeep to trade. It was to be a gift for their 3-year-old
daughter, one they couldn't afford to buy. "It's actually worked out
really well," she says. "We helped people move last week and they
said, 'Whatever we don't fit into the van, you guys can have.' " They
have traded for tools, dirt bikes, four wheelers, home goods and other
items.
Wendy Mackin has a 65-inch HDTV. She bought it three years ago for $7,000
but wants to replace it. For two weeks, she tried to sell the TV but had
no takers. Finally, Mackin offered it on craigslist in exchange for an
exterior house paint job, landscape work, irrigation repair or other
outside work. The response was strong and immediate. She negotiated a deal
with a licensed painter.
"People are losing their jobs and don't have cash to spend, so it's no
surprise that they're turning to bartering," says dentist Greg Moritz
of Alpha Dental. He started bartering about 18 months ago through
International Monetary Systems (IMS), a barter network. A few months
later, Moritz posted on craigslist offering dental treatment for items of
value. |
"The office
was a little bit slow when he started trading," Moritz says. "I
thought if I could get IMS money, it might help out with overhead. I
didn't know what I could do with it."
Local dentist, Greg Moritz, bartered dental work for fish
tank maintenance.
He estimates he covers fifteen percent of his overhead through bartering.
"Barter networks are slightly different
from direct trading," says David Heller, a locally based broker for
the barter network, ITEX. It's still trading because cash is never
involved, except when paying the broker fee.
Members of the trade exchange use ITEX dollars to buy goods and services
from other members, Heller explains. For instance, a graphic designer
might go to an eye doctor who is a member of the barter network. The eye
doctor doesn't need design work but he can use the network "money" paid to
him in order to purchase something from a different member.
Moritz has traded on his network for advertising, printing and other
services related to his practice and estimates that he pays about 15
percent of his overhead with barter money. A skeptic turned believer,
Moritz not only recommends barter networks to business owners but
considers it a necessary tool for uncertain economic times.
Moritz also has made direct trades with patients for things such as new
tile in his office, a paint job and even maintenance for the office fish
tank. That can be a good deal for a skilled worker with little dental
insurance. "Sometimes, I look for opportunities where I know it might
be difficult for people to get good treatment because the treatment plan
is too expensive," says Moritz, adding that implant work can cost
thousands of dollars.
People have offered things he can't use, such as karate lessons, haircuts,
repair work and massages. Moritz trades when he can but there is a limit,
he says.
Bartering can be traced back to ancient times, but was replaced by a more
efficient economy based on money, notes Keith Schwer, director of the
Center for Business Economic Research at the University of Nevada, Las
Vegas.
In the past, it took too long to barter, because people had to search to
find something they wanted for something they had. The Internet eliminates
some of the inconvenience of bartering, Schwer says. "I suspect in this
soft economy, people say 'I may be out of a job but I can raise some
revenue by doing these things.' They have the time to do it. Some people
may have found this is a way to add to their current economic status." |
