When we started looking at actually doing the homesteading thing (rather than just prepping for local disasters and spending as much time in the bush as we can afford to), “barter systems” became a big word in our house. As with free-cycle, and using the “free” section of craigslist, there are just some things that are better left to barter. Especially when you know that the people you surround yourself with have skills or items that you or another of your friends (or family) needs. But the task of setting up a local barter system sounds like something somebody else ought to do. It sounds monumental. Something best left to over-achievers and those who don’t feel like they’re going to melt into a puddle of “what did I get myself into?” when it comes time to actually start talking to people about this. You find that people you thought you could talk to about anything become intimidating strangers who are totally unapproachable. The landscaper next door who loves the fresh eggs your chickens produce is suddenly an unknowable monster who would probably laugh at you if you were to suggest trading landscaping for a certain amount of chicken eggs per week for a month or two.
Moo.
The thought of asking for anything in return for anything else becomes the task of eating an elephant. And really, how does one set about eating an elephant? The standard answer to that question (we’ve all heard it a million times) is, “One bite at a time,” and that’s the way we need to approach building barter systems in our own neighborhoods and circles. If you look at the whole thing all at once, it seems impossible (right?). But when you organize it into steps, stages, logical pieces, it’s much easier to see how to get it done, step by step. The bites will be smaller, so-to-say. They can each be easy enough and “do-able”. And when you have all of them done, why, you will see that you have accomplished something enormous. That’s just exactly how it is with the way to set up a barter system with others. Here then is how you approach the elephantine task of bartering with other people, in 7 simple (but important) steps.
Step 1. Approach somebody you trust with something you know they want. This means you’ll want to have a clearly defined barter item that they can provide you. If you choose not to do that or forget it, you may expect the deal to fall through.
Step 2. Have a timeline by which you will each provide the other with a trade item or service. This can be extremely important because if neither of you know what to expect, the task can stretch out for all eternity, and debts on both sides of the coin may put your friendship and mutual trust at risk.
Step 3. Have either a written or an oral agreement by which you both abide strictly. Which means that if you promise something, come through with it immediately. Additionally, it means that if you abide by your agreement quickly, chances of future barter with the same person are high.
Step 4. Leave the lines of communication open. This may require that you have a bit of flexibility if something comes up and your barter associate is not able to come through with his or her end of the bargain immediately.
Step 5. Tell others what you were able to accomplish with your friend. A key point you will want to remember here will be to not compromise your friend’s identity. The reason that this is extremely important is that you don’t want to compromise yourself. What you put into a local barter system is exactly what you will get out of it. Having a complete stranger knocking on your friend’s door trying to get out of him or her what you two were able to negotiate is not a good way to do business. What you want to accomplish with this step is to open yourself up for more negotiations with other people to barter with. Not to destroy what you’ve begun to create before it’s more than a foundation.
Step 6. Be willing to compromise. What your work is actually worth and what the market will bear exist in two totally different galaxies in this economy. Be fair, and don’t short change yourself or those around you. Remember though that being fair doesn’t mean that your hard work is worth more than your neighbor’s hard work. It means that if you want something, you will have to work for it.
Step 7. Don’t get yourself into something you cannot finish. It’s human nature to want to promise everything under the sun in order to get our hands on what we want. DO NOT DO IT. Only promise what you know you can absolutely deliver, and be ready to hand over whatever it is that your friend has given you if you cannot or do not complete it in the amount of time that you have set before you started. Great! Now you’re almost there! Bear in mind, people generally use barter systems when they don’t have the cold, hard cash to buy what you’re offering in a typical exchange of currency. If you know that your neighbor is absolutely crazy about gardens, and you are absolutely crazy about the horses he breeds, it might be a good trade for you to completely install a new garden system for him – but only if it’s financially feasible for you. Don’t get yourself into something you cannot get out of. Make sure that you actually have the mulch, gravel, stepping stones, wood planks, fittings and back fill dirt you will NEED to create his gardens in your hands before you make an offer.
Should you keep to the steps outlined above, over time the enormous elephant of the challenge you faced building a local barter system that you can go back to time and time again, is going to be “eaten up” and handled. You will complete your project, succeed and then enjoy the benefits and fruits of accomplishment and victory.
If you’ve got any comments, arguments, or additions to this, please leave them here on the blog! I’d love to hear what you have to say about barter systems and how you set up your own.
**Elephant Image courtesy of Jim Bowen (Flickr: Elephant at Indianapolis Zoo) (CC-BY-2.0 (www.creativecommons.org/licenses/by/2.0)), via Wikimedia Commons**
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2 Responses to Barter Systems (in 7 steps)
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Good post. I think that many people today don’t have a good feel for how valuable their own time is, nor for how valuable someone else’s time is. If I’m a plumber and your toilet is spewing into your house, my time is far more valuable than just about anyone’s, except maybe for a doctor if you are ill.
Another thing is that many people don’t have a good view for their own time’s worth. I was always a guy that worked on PCs. I was often called for advice for how to fix something. But I never thought of that as valuable because so many friends know so much more that I often felt like I wasn’t an “expert.” But to someone like my mother, who can get online, check e-mail and fill out a spreadsheet but not much else, I’m an expert.
People (i.e. me) also need to take an inventory of what they have to offer. This is your equity in the barter system. This is what you can provide for what you need. And don’t forget to count your sources for things in your inventory.
I hope that makes sense.
Great post, I was going to say “Step X” is a great point, but as I read through them, they are all great!
I’m slowly moving all my stuff from my house in the city to the country so that I can put it on the market. I’ve done some stuff out there, met people, and I thought it would be the opposite, but one thing I’ve found is out there, everyone expects to be paid for doing something. Not that that is wrong, but I expected it in the city and often neighbors will just help neighbors. I found it interesting, at least.
Barter is also an option out there, though. For instance, I know of people who ask someone to cut trees down on their property and in return the person who cuts them gets 2/3 of the wood (to sell for firewood). People who let others hunt on their land get, in return, “free” labor and sometimes materials to build blinds or otherwise manage wildlife (like putting out corn).
I think that barter systems are going to become more and more important in the future. Thanks for this great post! And I think the key is to start developing the relationships and systems now.