Did you give someone a gift card over the holidays, instead of just handling them cash? You’re certainly not alone. The use of gift cards is more complex than we think. Gift givers are looking to transmit an emotional value that is more than just the economic value of cash.

Research from the Tower Group, as noted in a recent issue of the Sunday New York Times magazine, illuminates the huge gift card economy where consumers purchased $97 billion worth of gift cards in 2007. And nearly 10% of that figure, or $7.8 billion, will never be redeemed. In barter parlance, this is known as breakage.

The way to give the same emotional value at less of a cost (to you) is to provide various gift certificates to a friend or loved one, acquired on barter, versus the gift cards which are purchased for cash.

These certificates can be acquired through a local trade exchange and paid for with your products or services, at your variable cost of doing business. And that’s an economic win for you.

To find a trade exchange in your area see: TradeExchanges

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