05 Aug we’re African – why are we so adverse to bartering?
If there is one thing that gets me hot under the collar it is when a prospective guest wants to bargain me down. In the winter it actually costs me more to run my guest house – the rooms need heaters, electric blankets and the linen have to be tumble dried- so why should I lower my rates in the off-season? There are far over 150 accommodation establishments in George covering the full price range, is it even fair to lower my price and in that way take the business away from another establishment and forcing them to lower their rates to the point where it is actually costing them to fill their rooms? (I’m not exaggerating – I know of one B&B that cut her prices to the point where she was actually subsidizing the guests sleeping over – how crazy is that?)
Yet, I have just exchanged 3 boxes of wine from a well known wine estate in exchange for a weekend’s accommodation. Sitting in front of the fireplace with a glass of excellent Pinotage, which we would otherwise never have sampled as it falls into a price range we consider above our limit, I just realized what a clever concept this really is. It’s a win-win situation. Being a strictly a one-glass-girl already half a glass above my limit, I drew my little laptop closer to research this bartering story further. That left Desmond obliged to sample the Pinotage further and his nods of encouragement at my excitement over the bartering system just became more encouraging as the level of the bottle dropped. (Understand, this is a man who is cheeky enough to walk down to the corner deli with a bag of home grown peppadews and come to an agreement to exchange it for our daily bread and milk! According to him he was just desperate because I was too lazy to bottle his abundant harvest of peppadews, but that’s a story for another day…)
The definition for bartering reads: Bartering is a trading system in which you offer products in return for credits to purchase other products and services in your barter group.
An American girl innocently required: “im doing a travel project for school and i need to know if you have to barter in South Africa? ” (At least she had the good sense to use capital letters for South Africa…)
To this naive question she received two rather indignant replies:
“NO, we do not barter! South Africa has a very welled developed economic system, while the country was very socialist during Apartheid, the country is now far more free market. We have our own currency, the Rand, which trades at about R7.50 to a $. We also have one of the best banking systems in the world, ranked ahead of the USA and many European countries.”
“we aren’t a group of uneducated idiots who live in huts and hunt lions and sh*t. South Africa if the richest country in Africa and one of the most watched developing to become a world super-power, next to Brazil, India and China. We actually have a currency, its called the Rand.”
And then from someone calling himself Bob Mugabe : “I do not barter. I take.”
Well, it’s certainly true that we have a well developed financial system here in South Africa and we rarely barter, but perhaps we should not be so quick to turn up our noses at the time-honored tradition of bartering.
There are not that many official bartering companies in South Africa, but in the rest of the wide world there are a number of bartering groups going. As a family we have done a number of International hospitality exchanges with www.homeexchange.com as well as www.homelink.co.za . As a Guest House I joined www.accommodationswap.com , which is a bartering group for accommodation providers.
I have come to the conclusion that a good barter system must have the following:
Businesses with products and services you will want to spend your credits with.
Fully automated computer system
A clear policy – you do not want to find out later that you have to pay a 20% commission on top of your membership fee
An active Facebook Page or Networking events where you can make contacts and promote your business.
Plan your barter agreement with the business of your choice in such a way that you can service them suitably – it has to be a win-win situation for both parties.
A benefit often overlooked, is that of establishing a network relationship with another establishment that you feel that you share a customer profile with.
I’m sold on the idea of bartering! But not on bargaining my rates down – bargain, no; barter, yes!