Firms delighted at result after going back to bartering

Dec 3 2007 by Chris Knox, The Journal

TWO of the region’s small businesses have resurrected the age-old practice of bartering their services in order to improve their businesses.

With the help of Durham Business Club, South Tyneside-based web designers Atomic Web Solutions and Durham-based PR consultancy MC Communications agreed to carry out work for each other in order to avoid the heavy costs involved.

In exchange for Atomic helping to increase the hits on MC Communication’s website, MC agreed to re-write much of the supporting text on the designer’s site.

The system relies on trust between the two businesses involved and has become common practice in the United States.

Dave Glynn, director at Atomic, said: “We were really pleased with our first bartering project and MC Communications were as equally delighted with the work we did for them. It’s a simple system and one which smaller companies, particularly start-ups, can benefit from hugely.”

The system has been backed by Durham Business Club, which believes it could be the way forward for a number of the region’s start-up firms and has provided advice on how to go about a bartering arrangement on its website www.durhambusinessclub.co.uk.

Development director Christine Yule, said: “As long as both sides follow the rules, which are straightforward, then bartering will be successful.

“In this case both companies did the work on time and to plan and both sides were delighted with the results. In my opinion it’s been an overwhelming success and we’ll encourage more of our members to barter.”

Other firms now involved include Gateshead-based Interpreting Translation Line (ITL), which provided interpreting services to Sunderland-based Media and IT firm Gibbon Online, which in turn helped create a corporate DVD presentation for ITL.

But Ms Yule cautioned: “Businesses need to make sure of the tax situation before they go ahead with any arrangements, such as whether they are both VAT registered, so that there are no hidden charges.

“They also should ensure that services exchanged are of equal value, which should be backed up by a written agreement.”