By Lisa Pemberton
Chuck Kennedy plans to enjoy a dose of sunny weather while taking in a few Mariners games during spring training in Peoria, Ariz.
And he doesn't plan to spend a dime for his hotel stay.
That's because Kennedy, 50, the owner of Olympic Crest Coffee in Lacey, will pay for his hotel bill with trade credits he's accrued through the ITEX bartering network. He regularly ships batches of fresh-roasted beans to customers in California and elsewhere in exchange for trade dollars he can use to purchase goods or services from the other 24,000 or so ITEX members.
"I love staying on trade," said Kennedy, w ho also is angling for a bartered Alaskan fishing trip later this year. "Hotels don't want empty rooms, so they'll put their rooms to barter rather than having them empty."
Strapped for cash in these rocky and uncertain financial times, companies and enterprising individuals are turning to bartering - the age-old art of exchanging goods and services without money - to boost sales and get rid of excess inventory, economists say.
Some are joining professional bartering networks, where transactions are tracked and clients can use their trade dollars at a variety of companies. Others are venturing on their own, organizing on e-on-one swaps on Internet sites such as Craigslist.org and U-Exchange. com. And some people are making deals with friends, family and neighbors.
Jeff Evans, 34, owner of Amazement Productions in Olympia, is a member of two professional bartering networks. He said he typically does 3 percent to
5 percent of his magic show business - a few thousand dollars a year - through trade.
"It's a great way to conserve your cash while still doing business," he said.
Evans has spent his trade dollars on a variety of products and services, including chiropractor visits, printer cartridges and a lifetime membership to a gym. Sometimes, he lowers his fees in exchange for a traded good or service with individual clients.
"I really think bartering is kind of a mindset. You don't have to belong to a bartering association to do it," Evans said. "I think you need to be flexible and be willing to be creative."
One of the biggest benefits to bartering is exposure to other potential clients. Evans said he usually is able to generate business from people willing to pay the normal cash fee when he does birthday parties and corporate gigs on trade.
Bartering also is growing among consumers. For example, Craigslist has seen bartering postings double during the past year, according to recent media reports.
Frances Morton, 54, of Winlock used the popular Web site to get a new fence (for which she traded a cow) and repair work done on her 20-year-old tractor (for which she traded goats).
"I've had really great luck," the part-time psychology instructor said. "I know there are scam artists out there. Everybody I've met has been really sweet and helpful."
Derek Yantis, 33, of Shelton used Craigslist to initiate a trade for a 2005 two-wheel drive ATV he no longer uses. He was inspired to do so after a friend successfully exchanged a custom boat top for a boat.
"Obviously, the times are tough for everybody right now, so that's kind of where we're at," Yantis said. "We're trying to trade for things to fix up and possibly sell. It seems to be working out pretty good. We haven't made a lot of profit on it yet."
Professional bartering networks have experienced a surge in interest during the past year.
ITEX, based in Bellevue, recently announced its member registration increased 45 percent this quarter, compared with the same period last year.
"The trends are people are very interested in bartering, and one of the reasons is that sales for some people are a little more difficult to generate in the cash world, with the way the economy is right now," said Steve Nicholas, owner of the Northwest Barter Network, a franchise of ITEX that has an office in Olympia. "We provide them a new audience."
Still, network members pay for those services. For example, ITEX charges a $20 cash fee and a $10 trade fee every four weeks, plus a 6 percent cash fee on every transaction.
Individual bartering online usually is free, but it takes more trust and ingenuity to make a match. Old-fashioned principles are exactly what Morton enjoys about bartering for goods and services to help maintain her Boer goat ranch.
"Back in the day, you'd shake somebody's hand and you'd know it was as good as a signed contract," she said.
Morton recently posted a "Goats for Bamboo" ad on Craigslist. It wasn't long before she was contacted by a Tenino resident who said she could haul away his bamboo plants for free.
"I felt guilty," Morton said. "So I trimmed the hooves on his goats."
Her advice: If you have something around your house that you want to get rid of, or you think would be more useful to somebody else, consider listing it on an online bartering or exchange board.
"I think it works out better if you're open-ended on it," Morton said. "Sometimes people get an item or a service that's better than they would have thought asking for." Learn the basics of bartering
Know the legal rules: The IRS requires barterers to report and pay taxes on trade income in the year which it accrues. The rules for reporting barter transactions may vary depending on which form of bartering takes place. For more information, go to www.irs.gov, or see "IRS Publication 525: Taxable and Nontaxable Income."
Know your limits: "You don't want to barter too much because you have to maintain your cash flow for your business," said Chuck Kennedy, owner of Olympic Crest Coffee in Lacey, who has bartered for about a decade. "So I say you shouldn't barter more than 10 percent."
Know the etiquette and potential pitfalls: If you're a business, remember that barter customers should get the same treatment as cash-paying customers. If you are a consumer, don't forget to do your homework before hiring a handyman or responding to an offer that seems too good to be true - it just might be. The University of Illinois Extension offers a list of tips on how to avoid misunderstandings while bartering at http://web.extension.uiuc.edu/toughtimes/bartering.cfm.