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Topic: Bartered compensation
Message: Posted by: ldl1017 (Feb 13, 2007 07:55PM)
I recently was approached by the GM of a local restaurant. What he proposed was rather interesting. He saw me at another restaurant while out dining with his family. He called me up and asked if I would work for trade or partial trade. I went and looked at his restaurant. The one aspect of the restaurant that I liked were the meetng rooms or smaller dining rooms. He is proposing 1/2 pay and 1/2 trade in gift cards for the restaurant. I'm looking for upsides and downsides to an arangement like this. Are any of you currently doing this as an ongoing form of payment and if so how well is it going over? Being self employed and working out of my house I thought this would be an ideal way to entertain a client who is interested in having an entertainer at their next function. The smaller rooms offer built in privacy for a meeting and the restaurant is in a sense paying for my meeting. Yes, I did work for the gift card, but I don't have to shell out any money for the lunch or dinner with the client. Le tme know your thoughts.
Thanks,
Lou
Message: Posted by: Jim Poor (Feb 13, 2007 08:01PM)
I've seen a lot of folks mention similar arrangements. My only concern would be getting really tired of the food.
Message: Posted by: MagicSanta (Feb 13, 2007 08:04PM)
Do it! Get gift cards and they can be used by yourself or given to special clients or family etc.. Paul Green wrote an article about this exact type of arrangement. I know some magicians that always get a meal along with pay.
Message: Posted by: Pete Biro (Feb 13, 2007 08:19PM)
I bartered photo work for a new car.... :)
Message: Posted by: ldl1017 (Feb 13, 2007 08:24PM)
Magic Santa-
Was the article in Magic Menu??
Message: Posted by: Skip Way (Feb 14, 2007 08:13AM)
I'll barter if the clientele of this restaurant fits my target market, it's a restaurant that I would like to be associated with and it looks like a fun place to work. It's a place that I really want to be a part of. Otherwise, I personally stick to my "Play for Pay" rule. Absolutely nothing wrong with it. I also barter movie premier promotions for reserved choice opening night seats and snack bar credit. I barter sports pre-game events for reserved choice seats. I once bartered the use of a car from a local dealer while my own car was being repaired in exchange for a sales team presentation on using magic & humor to open and seal a sale. Be creative...and watch those tax laws. Bartered goods & services are considered income.
Message: Posted by: Magic_Steve (Feb 14, 2007 08:56AM)
I agree. But I also think you need to consider how much you are getting in gift cards. If you walk away with a $50 gift card each night you work there, that's going to get old fast. I think you might need to change it up. Maybe a 3/4 of your payment is cash, while a 1/4 of it is in the form of a gift card.

Best,
Steve
Message: Posted by: Skip Way (Feb 14, 2007 10:16AM)
Good point, Steve. :thumbsup:
Message: Posted by: sibbie (Feb 14, 2007 06:44PM)
I'm not good at the bartering thing but my dad is in sales and travels so he barters for food, hotel room, and other things he needs during a few week stay. He has done this for years. Bartering can be a very good thing!

I need to go study now. Time to learn how to barter like Pete!
Message: Posted by: MagicSanta (Feb 14, 2007 07:30PM)
I am pretty sure it was in his Magic Menu column. It was an interested article and perhaps Paul will see this and let us know where to find it.
Message: Posted by: derrick (Feb 14, 2007 09:59PM)
I've bartered in the past and can tell you from experience that it is tough to renegotiate a deal like that. They never want to raise the amont of money you are paid, just the amount of food. The food can begin to get old pretty quick no matter how extensive the menu might be. I'm with Steve when he says 3/4 in cash and 1/4 in food. Also, be sure you really like the food.

Derrick
Message: Posted by: David Boyd (Feb 14, 2007 10:35PM)
Go for it ..... Look at it as a learning experience... good point about the food Derrick! :lol:
Message: Posted by: ldl1017 (Feb 14, 2007 11:08PM)
Hey Guys,
Thanks for all the constructive input. I haven't made a decision yet. I am currently gainfully employed at other venues, so I have the luxury of steady work on my side. In regards to the venue being to my liking and in the best interest of the clientele that I am marketing, I think it is a good fit. The suggestion of 3/4 and 1/4 is a sound idea. I'll keep you informed.
Lou
Pete- How can I get a new car? I have my on a Mini Cooper. Maybe if I splash his logo on one side and mine on the other , he'll go for it. :lol:
Message: Posted by: MagicSanta (Feb 15, 2007 12:29AM)
You may not realize this but Pete Biro, beyond being one of our living treasures in magic, is also a world recognized photographer known for his racing and auto photos. He's also a Raider fan.
Message: Posted by: ralphdean (Feb 15, 2007 11:52AM)
A Raider fan? Well no one is perfect.
Message: Posted by: Dannydoyle (Feb 16, 2007 09:13AM)
The gift card barter will not serve you well for long really.

Think of it this way, if they want to barter like that, raise the stakes. It costs the establishment ZERO to give them to you anyhow.

Since they are for a spacific place, it better be a nice enough place that you WANY to give them away. Something to consider if you get my meaning. As an EXTREME example, you wouldn't give McDonalds gift cards to clients. I know this is different, but keep that in mind. IF you giving them to impress, make sure they impress.

Anyhow wouldn't it be better for you as a business move to simply buy gift cards from some place that is nice when you need them, than to hope you can eventually give these away? You can't plan on giving away half your salary every week.
Message: Posted by: Pete Biro (Feb 16, 2007 11:01AM)
The Raiders (sadly) used to have the GREATEST win record in all of sports.

And they will rise again! :dice:
Message: Posted by: ralphdean (Feb 16, 2007 12:07PM)
Hey Pete, I could not resist. I was a Raiders fan too, before they moved. That was the move to LA, not back. Since they moved back they have destroyed what was an OK baseball park. The bleacher area used to be great.

Ok, so I may need some anger management classes.
Message: Posted by: Magic_Steve (Feb 16, 2007 11:33PM)
Well whatever you choose, make sure it is the right decision. Whether it be some gift cards or all cash, only you can decide.

Best,
Steve
Message: Posted by: PaulGreen (Feb 17, 2007 09:39AM)
The barter of goods and services has been around for a long time. If you are going to travel down this path, I think you need to "do your homework" about the subject. You need to establish the value of what you are providing as well as the value of what you will be receiving. I have bartered for hotel accommodations, major appliances, and even medical procedures.

The gift certificate does have value. It does cost the restaurant money to provide this form of payment. A good rule of thumb is to think that a $50 "card" costs the "house" about $25 (real dollars). If you have agreed upon a $100 per shift figure then you should receive that figure. $50 cash and then $100 in certificates. You can use the certificates yourself, or use them to defray the costs of the drinks or food you "comp" for your clients. You may gift them to others.

It comes down to receiving the value you earn (and deserve).

Enjoy the search.

Regards,

Paul Green