(21) I build Web sites

Why not save $3,000 cash? Matthew has a small Web page design company using five computer stations. For several years the machines have been serviced and maintained by a computer repair company owned by John. Matthew has been spending about $3,000 yearly with John and they have had a good business relationship. Thomas, unknown to either John or Matthew, has a computer repair company in the same city with free time available and he made a proposal to Matthew that she do his Web page work in return for Thomas's company servicing Matthew's computers. Matthew knew his company had enough unused time to be able to do the Web work for Thomas while incurring very little extra cost. This made his decision easy, and so he moved his $3,000 in annual business from cash to trade. Thomas, in turn, got his Web work done using some of his unused inventory of time. Both Matthew and Thomas benefited. John, on the other hand, was the loser as he saw $3,000 a year of his cash sales silently disappear. Once we fully grasp the fact that barter properly done is entirely new business for both parties using vanishing inventories, and not a substitute for a cash sale by anyone, we will see its power.

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