Possibilities and assumptions apart, the most simple, effective and beneficial method of resource trading for mutual benefit traces its origin back to 6000 BC and is believed to be introduced by the tribes of Mesopotamia. Known as barter, this system of trade exchange involves two parties, each possesses products or service the other one doesn't. So, they mutually benefit each other by exchanging the resource without having to rely on any cash or tangible mode of payment. In short, bartering is the cashless exchange of goods and services between two standalone parties who want to help each other in lieu of something rewarding.
In the ancient times people used to exchange vegetables for milk, teas for spices, goods for weapons, salt for salary. But because there were no criteria to determine the value of exchanged goods, the system saw a slow but steady decline despite being practiced for hundreds of years. With the arrival of money, the problems of barter have been fixed, but this ancient form of trade exchange exists even today in one form or the other and has been propelled by people and companies who found out innovative ideas to effectively rule out its shortcomings. There're many benefits why experts believe bartering is still awesome. Here we cover a few
It encourages more accuracy in trading for improved and valuable service. Take the example of two neighbours, one loves cleaning cars and the other one mowing yards. Both can trade the two tasks for common benefit. While doing the same, they ensure accuracy and perfection since this is something they love to do and not that they have to do. The outcome is one gets a shiny, clean car he never had seen before because of lack of time and the other one enjoys a perfectly mowed yard that he considered a tedious task before.
The system of bartering opens up possibilities to find alternative options to accomplish a task in exchange of something beneficial.
Cash is a crucial concern for business. Having a perfect cash flow unaffected by economical imbalance is something very few enterprises actually achieve. In bartering, neither party participates in cash transaction process. Therefore, it reduces the tendency of economic instability and financial insecurity due to cash shortage.
Participating in bartering encourages people to develop and share practical skills. Rather than relying on easy to purchase but expensive products that we don't really need, we can focus our attention on learning skills to obtain what is truly of value.
Depending on bartering, when you know whom to trade a service or product for something you have, you reduce the likelihood of investing money on advertisements and promotional ideas such as heavy discounts.
Since there're no middle men or overhead involved, bartering helps lower the price of a product or service.
Other than the mentioned points, bartering can make slow-moving inventory sell easily and reach a potentially untapped source of revenues and income. Simply put, bartering when coupled with improved exchange ideas seem to be a thoughtful answer to many of today's economic crisis. Wait for our next set of articles on how to improve your bartering skills with reference to the improved exchange ideas that make it a practically better trading option for a cashless future.
The author is an avid blogger, permaculture practitioner, new media enthusiast and a member of Varanasi Estate, who believes there's a life beyond economic shakeout, social dogmas and mental stress. Here to share his views, learning achievements and observation on how to lead a happy, healthy and deliberate life.
No comments:
Post a Comment