Let’s Make a Trade
Barter used to mean swapping rice for a chicken,chicken for car repair.But with cash flow tight for many businesses in this economic climate,exchanging goods and services might be a trading method to consider as part of normal operations.“In times like these,cash is king,but barter is smarter," says Brian Hodgson,director of Hong Kong's Pacific Barter Company.Companies want to get rid of excess inventory and save cash.
Hodgson started his company in April 1997,just months before the crisis hit East Asia.“When we introduced the concept into the marketplace,people said:We don't want to barter,we have lots of money.Now with the slump,they are tlling us:‘We have warehouse full of things.Lest’s talk.'"With over 60 members,ranging from major international conglornerates to small and medium-sized local firms,Pacific Barter handles about $40000 in deals monthly out of Hong Kong an China.
Last month,Rudy Chan launched the Hong Kong operations of Australia-based Bartercard,the world's biggest trade exchange with 20000 members.Bartercard holders use“trade dollars" to purchase goods and services from other members.A security company for instance may buy $1000 worth of uniforms from a garment maker.The seller is credited with 1000 trade dollars by Bartercard,while the purchaser's account is debited the same amount.Straight swaps are not required.On joining,members are given a trade-dollar credit line.
Barter trade practice had been widely accepted in Asia long before the Asian financial crisis.