If you take a look at a book on microeconomics, you'll see a section on bartering. Generally, it will say that the process is fairly inefficient. Hey, that's why societies have invented currencies, right?

This is all true. Yet, for those who are trying to run a business, bartering may be a good thing. Perhaps the biggest reason is that it saves on cash. It also can be a great way to build relationships and perhaps even get new customers.

Continue reading Entrepreneur's Journal: Save some bucks with bartering

Entrepreneur's Journal: Save some bucks with bartering originally appeared on BloggingStocks on Sun, 16 Aug 2009 18:10:00 EST. Please see our terms for use of feeds.

A lot has been made about a pizza restaurant accepting the Mexican Peso as legal tender in it's stores. Yesterday Brandon Barker reported: Ay caramba: Pizza chain makes peso policy permanent. Some people feel it is a affront to U.S. sovereignty. Others feel like they are being personally invaded. Still others respond as if the restaurant was committing some sort of crime or letting a thief in through the back door,

This a fantastic opportunity for self reflection, discussion, and maybe education, and growth. My first thoughts on the matter included all of the above and the idea was very unappealing to me, and, I felt, detrimental to the United States. After a few minutes and reading a few comments I changed my mind.

Once upon a time there was a Cracker Jacks commercial that showed a kid at the counter paying for his treat. He could barely see over the counter, very Opey-like, and he only had nine cents for what was a ten-cent acquisition. High finance to a little kid. The fatherly shopkeeper shook his head slowly at the nine cents on the counter and raised his eyebrows, communicating that it was not sufficient. The child, thinking for a moment, reaches deep into his pockets and, with appropriate reservation and in a demure manner, offers up a marble to the shopkeeper --- not sure if this would be acceptable.

The shopkeeper takes the marble, holds it up to the light as if it was a fine jewel, feigning some special value upon it, and wanting to let the boy know that he understood it had significance. He pauses, looks at the boy, nods affirmatively, and the deal is struck. The boy leaves happy, the shopkeeper accepts a marble as barter in partial payment, and not a word was said. We, the audience to this beautiful scene, are left with a warm fuzzy feeling charmed by the kindness and wisdom of the shopkeeper and the pride and joy of the boy. From my perspective this television commercial is one of the finest moments in broadcast media and it is as good as any show ever made.

If the shopkeeper can accept a marble then a store can accept a peso.

Continue reading Think pesos are bad? How about marbles? Of paranoia and capitalism

Think pesos are bad? How about marbles? Of paranoia and capitalism originally appeared on BloggingStocks on Tue, 06 Mar 2007 17:30:00 EST. Please see our terms for use of feeds.