How The Iberian Pig Bartered Its Way Into Business
Decatur Metro | January 10, 2010 | 10:26 amThis morning, the AJC uses the Iberian Pig and the strategy of its owner, Federico Castellucci III, to launch into an interesting discussion on revived practice of bartering by businesses in a poor economy.
“In this time, banks aren’t even going to look at us — a new restaurant opening in a nasty recession,” Castellucci said of his family-run Decatur eatery, the Iberian Pig, which opened in October.
But Castellucci, whose family owns two other restaurants in metro Atlanta, built on an existing space on the Square by bartering services with contractors and other vendors.
He financed the opening through future sales and the fee he pays a trade exchange firm based in Lawrenceville, Castellucci said.
Castellucci tells the AJC he was able to barter “a little less than half” of his opening costs. Impressive.
Business owners: how important is bartering to your business model? And is it another one of those things that’s easier to arrange in a tight-knit community?
In non profit world, we call it in-kind. We could not live without it.
Amen!
Of course, you know as well as I that nonprofit business practices aren’t taken as seriously until the private sector gloms on to them!
Regardless, that is pretty cool & very creative. This is why the family has three restaurants.
Personally, I want to support the Pig more but baby Nellie really made a scene last time we were there and I don’t want to risk other people’s good times! (but the food does get the stamp of approval of a sophisticated and picky two year old!)
To open our fair trade online store, we bartered graphic design services for products (samples we had before opening) as well as banner space in a couple of websites serving our market niche (natural / eco-friendly parents) Currently, we still barter advertising banner space in a natural parenting site in exchange for babywearing dolls. It works well for both of us!
Gilda
I trade my soul for a job with health insurance. The devil is actually a very creative and innovative guy. We’re both really happy with the deal.
I think it’s great and creative. But you probably don’t want to go public with it. There are tax implications. Uncle Sam does not like it when he doesn’t get his cut.
Bartered goods are taxable income, yes!