I am fairly certain that all of us here have been asked in the field when doing a large system by the other trades "hey, how much does a system like this cost?"

We usually dodge the strait out answer since it is a privacy issue to our clients. We all I am also sure get requests from these other trades to get them gear at cost or do some stuff for them in exchange for their services, plumbing, drywall, painting, etc.

Here's my problem, I recently did a small system for another trade in exchange for his service, in this case painting. I got him the gear at cost and the labor for install and programming was free in exchange for his labor. But when I told him how much we would have charged a client for the system he, as well as other trades would be, was shocked.

If anyone else out there trades like this, do you simply trade hours of labor and time, or what?

I traded a new roof for a camera system and DVR with a roofer, just quoted him my standard price to him and he quoted me the roof price, even encouraged me to check with other roofers.

No bartering ever.....

That's a hard and fast rule.

Why?

I gaurantee that there will be a time when one side, or both, will feel ripped off.

It's easier to do a swap with no discounts on either side. You have the plumber, or other trade, figure the job just the same as he'd normally do. And you do exactly the same. That way there's a lot less chance that either will feel there was any chance of being ripped.

For me this goes way back to the days when I owned a bar. I had a plumber want to barter for his services when I needed work.

My reply to him?

Do I give you free beer? And do you think I'll ever give you free beer? Just price the job like you do for anyone else and we'll get along fine, since I'm always going to charge you for that beer......

We good?

I'm just typing 2 bills like this. This is the first time I haven't regretted doing it. I usually get screwed. We traded cost for cost and both sides are happy. This is definetly the exception NOT the rule.

No bartering! If another trade needs my services, I give them the best possible price I can. Cover my costs of labor, material and add a few bucks for "carrying" stuff.

When I need his services, they do the same for me.

I only do this for folks I feel I can trust, it takes a lot to gain my trust. Always has worked out well.

Mine weren't barters, per se. We billed at cost. I did my labor for free as my pool guy saved me $18K. It only took me 5 hours to do the job. I even got him a bottle of Glenlivet

This is all very well, but someone once told me;

"Better to pay and get paid".

I sometimes have a little trouble with family about this, and my family members have nothing to offer me that I cannot do myself.

After all, isn't that what money was invented for???

I don't like to barter. Last time a customer wanted to barter we put a system in for him. Did a good job for him and then the guy was supposed to do lettering for one of the trucks. It was terrible. But there was not much that I could say since the system was already installed in his house.

I was pissed. So, I suggest that he does it first so that you know what you are getting.

Dave T

If both of you use that approach, nobody will ever be disappointed!


This has other ramifications that you haven't mentioned. I used to work for a company that did "trade-out," and that all came to an end when they computerized.

You see, the computer assigned sales tax to each item sold, and that sales tax, when collected, went into an account, then was later paid to the state. With trade-out, some creative pen and ink took care of it and actually paid it, but the computer program could not adapt.

Then, when labor was involved, there was cost of labor versus income. As there was no income, corporate profitability suffered as there was cost of labor with no money coming in to even cover the cost.

I guess you could do this as long as you are writing all your bookkeeping in longhand, but once it is in a computer, there will be problems.

I know someone who went to jail for bartering and not properly cutting in Uncle Sam... Beware...

If you charge your regular price, you'll have the money to pay for their service and they will be able to pay for yours.

Less headaches in the long run.

Business is business.

Whenever you trade cost for cost, you've made nothing!

AND, you've lost the time that you could have been doing something profitable.

With time being something that we can't buy more of..........well.......do the math.

If you remain freinds afterwards, then that is amazing when bartering. I did program a MX-3000 for an install of a nice mantle around my fireplace. He paid for the remote, I paid for the mantle. We both spent a few hours. The best way to explain it is, if both parties feel they got a great or at least good deal, then it's a good deal.

BNC