Establish barter agreements (vendors, media, etc.) 3.07 Establish barter agreements (vendors, media, etc.)

Bartering Trading or exchanging a good or service for another good or service. Ex: Posting Fresh Water Company’s sign at the event participant registration desk in exchange for bottles of water to give the runners who participate in the event.

Barter Agreement Agreement between two entities for the exchange of goods or services where both entities gain. Ex. I will wash your car, if you take me to school for a week.

Reasons for Barter Agreements Helps to decrease cost If you are getting an item at no cost, your overall out of pocket expenses are lower. Win for both parties involved Both parties get the desired outcome they want per the agreement.

Terms/Considerations in Making a Barter Agreement Determine what each party has to trade. Could be one item/service or multiple items/services. Determine exactly what each party wants to trade the other for. Only trade for items/services you will actually need/use. Determine the value of the items/services bartering for. Make sure they are of equal or better value for both Clearly spell out the terms of the agreement. Leave nothing for interpretation. Limit the terms of the agreement. Don’t make an open ended agreement, keep it to a certain event or timeframe. Put the agreement in writing and obtain signatures. Do not settle for a verbal agreement. Be flexible, but do not let the other side take advantage of you.