Businesses Using Barter System To Keep Expenses Down

By Angelique Soenarie
 
MESA, ARIZONA — David Robinson used to barter custom granite counter tops for personal luxuries such as jewelry and vacations for his family and friends. Now he exchanges his services to maintain his business operations in a tough economy. "It's been crucial to use to use barter dollars instead of using cash dollars," said Robinson, who owns Manstone Countertops in Mesa.

He isn't alone. Robinson is one of 500 members of the Arizona Trade Exchange who have shifted from trading services for personal gifts to bartering for services that offset their operating costs. "I think when I first started I saw people using the trade more for elective items or extravagant vacations, or pieces of jewelry. It was almost like extra money. Now with the economy in tough times I see members using trade to offset (business) costs," said Rob Miller, who founded the Mesa-based trade exchange 10 years ago.

Across the nation there are more than 400 business trade exchange groups that do billions of dollars worth of transactions, according to the National Association of Trade Exchanges. In 2008, the Arizona Trade Exchange did $4.9 million in transactions, Miller said.

The exchange serves the entire Valley and is one of several trade exchange groups in Arizona. Membership requires a one-time fee of $495, Miller said. Miller said the benefits are twofold: not only do members get deals, but they also get exposure to other businesses whose clients may need their service as well. "It's so rewarding. I can bring business to people who would have never gotten business and, in this tough economy, whose business has slowed down by 30 to 40 percent and now will be able to offset expenses by paying in trade instead of cash," Miller said.


Business owner, David Robinson, exchanges his services in
granite work to maintain his business in a tough economy.

That is what Robinson is doing. Today he exchanges granite countertops to maintenance his seven pick-up trucks, pay for office cleaning, air conditioning, employee incentives and marketing. He estimates he barters for $50,000 worth of services. Robinson said in the beginning, "we were actually using barter dollars more for convenience or things I wanted than what I needed. We spent (barter dollars) on watches and jewelry and personal gifts for family, friends and employees because it was fun," he said. "But as our construction started to slow, it was crucial for vehicle maintenance, carpet cleaning, office cleaning . . . things we used to spend cash. Now with not as much cash flow like we used to have, it's nice to know we have barter dollars."

Some business owners even barter for dental work. Neal Yukolis, a longtime east Mesa jeweler, recently designed a ruby and diamond piece of jewelry worth $3,500 to help pay for his son's $5,000 visit to an orthodontist in the trade group. "It started to get more personal as the trade grew, and it has evolved from a business to business to business to owner," Yukolis said of his business formerly known as Mesa Jewerly, now Estate Gallery II.

He joined the Arizona Trade Exchange 10 years ago mainly using it to buy janitorial supplies and to maintain his former store along Main Street in downtown Mesa. These days he barters for personal benefits that include vacations, home improvements and his children's dental work, which his wife's insurance doesn't cover. He relocated his business two years ago to a small appointment-only office in north Scottsdale that he shares with another business. "I still use it for business cards and invoices," he said.