What is the difference between a tradeing in a club and direct trade?
A
There are several obvious downfalls of the one-on-one barter system vs belonging to a trade club
Need direct trade you have to ensuring that both parties want each others products or services. With a Club or exchange: The party you sell to does not have to supply what you need, but can instead pay you in credits which can be used to purchase what you need.
Fair trade - direct trade you have to ensure that the items being swapped have the same value. With a Club or exchange: The value of your product or service is credited or debited per transaction at full retail value.
Timing direct trade you have to deal with Timing -if you wish to trade corn for fish you can only do this if corn is in season. With a Club or exchange: this ceases to be an issue when you can deposit your dollars as you sell and use your trade dollars at any time now or in the future.
Record Keeping direct trade If a partys trade takes place now, but one parties product or service is not worth the same amount or not a present available, then one party will have to issue another party an IOU With a Club or exchange:- there is no need to ever issue an IOU in the barter system, as credits and debits are processed in real time and you elevate the need for a record keeper. The software does the work for you!
