How does
Barter work with a trade exchange?
A trade exchange
eliminates the restrictions of one-on-one trading where each
business must want what the other has to offer. A BarterPays!
broker works with you to bring your company new sales, increased
market share and to minimize cash outlay for everyday business
expenses. Clients of an exchange use barter (or trade) dollars,
instead of cash, to handle their transactions.
A barter exchange acts as a third party record keeper, providing
monthly statements to members, which reflects all barter purchases,
sales, and a current barter-dollar balance.
What companies are involved in barter?
Globally, over 470,000 businesses are involved in barter. It
is estimated that 65% of Fortune 500 companies engage in
barter to one degree or another.
Are there any tax advantages to bartering?
Barter income is treated the same as cash income. There are
no tax advantages or disadvantages to bartering. Trading
should be considered a marketing tool, not a tax tool. BarterPays!
Inc. provides your company with a 1099B of all Network sales
transactions in each calendar year. Cash purchases that are
normally tax deductible as business expenses are also tax
deductible when purchased on trade. Consult your accountant
or tax advisor.
How will my business profit from barter?
Barter produces new business – allowing you to expand your
market and maintain your cash-paying customers. Barter conserves
cash. For example, if you owned a hotel that had ten vacant
rooms at $100/night and you need a new copy machine priced
at $1,000, BarterPays! provides a way in which you can buy
your copier, fill your rooms (at your cost on the rooms)
and maintain your cash. The same is true for filling empty
tables for a restaurant, moving inventory for retailers and
manufacturers or increasing billable hours for service business.
Barter provides a competitive edge. Barter clients are new
clients that bypass competing businesses to do business at
your establishment while you are maintaining your existing
cash clients.
What does it cost to get started?
There is a small, one-time membership investment to establish
your business account with a 90-day Happiness Guarantee!
Transaction and modest monthly fees cover accounting, marketing,
promotions and member services.
How much business will my business generate annually through
the network?
Every member business is assigned a broker in our office. They
do a complete spending analysis with you on your current purchasing
as well as projections for your business in the future. You
can spend your trade in many of the same ways you spend your
cash. If your products or services are in high demand, we are
happy to call you first and tell you who is looking to purchase
from you and what their needs are. This way you can decide
if you can handle more business and know ahead of time what
the job entails.
What if I need to make a purchase before I’ve earned trade
dollars in the system?
Just like a bank, we encourage businesses to apply for a barter
line of credit. If you qualify, you can begin purchasing immediately.
How should I price my products and services?
Charge fair retail value at all times for your product or service.
You do not need to honor coupons or special sales offered
to cash customers, but the price you charge must be a reasonable
price you sell at every day on the retail market. A barter
dollar is equal to a U.S. dollar.
How can I barter outside of my own city?
Trade exchanges participate in worldwide reciprocal trade relationships
with other exchanges offering a multitude of additional barter
opportunities. We fulfill our members’ travel requests via
our vast global network. We also help businesses looking
to open new markets by using the distribution channels available
nationwide. In turn, we receive products from across the
nation that are made available to our local membership.
Need more information about BarterPays!? Interested in becoming
a member?
Contact us. |
