The Motley Fool Newsletter Looks At Barter

An interesting article by David Kuo appeared on The Motley Fool web site on May 17. Wayne Sharpe, CEO and co-founder of Bartercard (LSE:BRTR), covered a subject that�s often incorrectly used interchangeably in newspaper and magazine articles�the difference in the meaning of the words bartering and haggling.

Sharpe contends that it is an unfortunate mix-up, because it gives bartering a bad (and an inappropriate) image. Sharpe explained, �When you haggle, you are trying to pay less than the asking price for what you want.

�For instance, when you submit an offer below the asking price, you are inviting the owner to haggle or negotiate with you. But when you barter you are paying the full ticket price for the particular goods and services being sold.

�However, the method of payment is different. Instead of forking over cash for the purchase, you are offering something of equivalent value in exchange.�

Sharpe pointed out to the writer that when bartering, businesses can effectively get what they need at a discount that is equivalent to their gross margin.