You may recall that back in January of 2011 I posted a wish list of all the things I would like to see in a barter exchange’s smart phone app.  I’m pleased to announce that IMS now has a beta smart phone app for BOTH iphone and android that you can download from the App Store (for iphone folks) or Google Play (formerly Android Marketplace).   The app has a lot of the functions that I asked for.  The folks over at IMS were kind enough to give me a heads up about the new app that you should be able to find for download by simply searching for “IMS barter” where you normally download phone apps.  Please note that this is a beta version so you should not expect perfection yet.

Overall I’m quite pleased with IMS’s first attempt.   It’s a little slow to start when you first click on the application, but other than than the functionality seems flawless.   I’m an Android man so I was able to test it on an Android phone and tablet.  I did not conduct any iphone testing.  I should also mention that it is a FREE application.  The main functions are:

• Restaurant Search (complete with interactive map)
• Authorization Request (like the website it is for a seller only)
• Account info
• Transactions
• Contact IMS (makes it easy to contact your broker)

Anyone who has bartered for very long is aware that occasionally you can run into a vendor that treats you like a second class citizen because you are paying for a product or service in trade. It goes without saying that this is to be avoided and that we should all do our best to service our barter clients just as well as folks that pay with cash on the barrel-head. That being said, it’s also possible to treat your seller poorly when you are buying something on trade.

Let me put it this way: It’s a lot easier to blow off your personal training session if you are paying for it in trade than if you are paying in cash. Doing so however is not fair to your barter partner or yourself. The vendors that you buy services from on trade, like personal trainers, massage therapists, doctors, chiropractors, CPA’s and yes even lowly web developers deserve to be treated like the professionals that they are even when you are paying them in trade. This means you need to show up for appointments, follow through with “homework” they assign, and even take the advice that you are paying them to give.

Additionally I should point out that it is totally self defeating to hire a professional then not follow through.  In order for consultive work to have the desired effect you have to actually act on the advice you are given. When you get that advice at a discount through barter it may be tempting to discount the actual advice. To do so however would be a mistake.

I once read a report that said that the success of any given smoking cessation program is directly proportional to the cost of the program. Simply put, the more expensive the program, the more the participants were emotionally invested in quiting so they had more sucess. So…with that said I think it’s very important to understand how much of a blessing it is to be able to take advantage of services through trade at a substantial cash savings and for you to NOT use this as an excuse that undermines the whole point of the service.

Over the years it has come to my attention there there are a couple things that us barter fanatics can do when we trade that will gain us a little “float” with our transactions and help with cash flow.    Here’s my current list:

1. If given the option when setting up your exchange account always opt to pay as much of  your commissions as possible when you are making a purchase.  That way you don’t have to pay commissions immediately when you make a sale.  It may even be worth while to pay a slightly higher commission if you can pay it all on your purchases.
2. Put your “commisionable” transactions through your exchange after the first of the month.  Most exchanges bill on the first of each month.  If you wait until after the first you won’t be billed the commission for an extra 30 days.
3. Assuming you are paying part of your commissions on your “sell” transactions, then it doesn’t make any sense to build your account up to a high balance.  Not only does this incur barter commissions, but you will also be taxed on this income that is sitting in your barter exchange account.   It is more to your advantage to earn at roughly the same rate as you spend.
4. Once you have proven to your exchange that you are a good member that can and will earn barter credits on an ongoing basis, they may extend you a line of credit.  By using this line of credit you can purchase products and services without paying any “sell-side” commissions at all up front.  You will of course need to earn those credits back eventually and the commissions will be due at that time.  Also if your exchange is charging you interest on the line of credit that probably more than wipes out any cash flow advantages.

Although there is some debate as to the voracity of the news reports about this (snoopes) I think the concept is still interesting.  There is no good reason why we should be trading government issued pieces of paper to buy and sell products/services especially seeing that the paper is a fiat currency that is backed up by no real assets and has no “real” value.  As such a jug of Tide is arguably much more valuable than US dollars.  When you combine that fact with the declining confidence that many Americans have in the Federal Reserve System it makes perfect sense that people are going to look for an alternative currency with real value.

More than anything else I would take these news reports as a sign of the times as to the current openness of folks to accept payment in barter.   As such I recommend to strike while the iron is hot and do your best to recruit as many of your vendors/customers/friends/enemies/etc. into the Cult Of Barter.

http://www.tvguide.com/News/Exclusive-Orders-Barter-Kings-1044955.aspx

Seriously though…a friend and I came up with a similar idea about 6 weeks ago.  There is a difference between our ideas though.  Based on the article above it sounds like they are going to try to do the whole “trade a  paperclip up  to a house” type thing.  I understand why they are taking that route.    It’s a popular story that people love.  I wouldn’t do it that way though because that doesn’t reflect the real barter sub-culture.  Real traders aren’t going to limit their resources and try to trade a single item up as much as they can.  Real traders are always bartering everything.  I think a better framework for a show would be to show how people live every day  with as little cash as possible.  I’ve heard of people that depend on barter for 80 or 90% of their income.  That’s what I’d be interested in seeing.

BTW…thanks to Paul for the heads up on this one!