There are several. First of all, trade produces new business . . . and allows you to expand your market beyond your cash-paying customers. Secondly, trade conserves cash. Instead of spending your cash to purchase needed goods and services, you can trade your own goods and services for the things you need, keeping more cash in your business for other purposes. Finally, trade puts idle resources to work. Excess time, excess inventory, and excess capacity are converted into needed goods and services.
Clients of our trade association use trade credits, instead of cash, to handle their transactions. If a client trades one thousand dollars worth of products to another client, he will receive one thousand dollars in trade credit which can be used to purchase anything from our other trading clients. Cruises, hotel rooms in most major cities, restaurant meals, advertising, printing, as well as thousands of other products and services can be obtained with trade credit. We are simply a third-party record keeper, sending monthly statements to all clients showing their purchases, sales, and current trade credit balance.
Internationally over 600,000 businesses have been involved in barter. Major corporations include Xerox, Mattel, IBM, National Semiconductor, Chrysler, Hilton Hotels, Shell Oil, Goodyear Tire, General Electric, Fairchild Camera, Spaulding, Douglass Aircraft, Clear Channel Communications, and countless others. It is estimated that 75% of the Fortune 500 companies engage in barter to one degree or another. Local companies trading with the The Barter Network® are Clear Channel Communications, Marble Slab Creamery, Planet Smoothie, TravelHost Magazine, Sak Comedy Lab, Arabian Nights, Wet N’ Wild, Invisible Fence, and many others. A list of our largest local traders will be provided at your request.
The Barter Network® was established in 2006 making us one of the most stable trade exchanges and one of the largest independents in the country. The Barter Network® has also earned for itself a reputation for hard work, honesty, and reliability. It is always open to criticism and suggestions from clients, and endeavors to establish policies which protect the clients’ interests and help to insure a stable, trade-credit economy.
Many trade and barter organizations, though well-intentioned, have large trade credit deficits in their systems. These deficits are a result of indiscriminate trade credit spending by owners, losses created from clients going out of business, or poor trade credit loans. Our organization, on the other hand, has a balanced trade credit economy. For every positive dollar of trade credit in circulation there is a corresponding negative dollar of trade credit which has been sufficiently collateralized under guidelines established by the National Association regulation.
The Barter Network® was launched by G. Jason Bergenske. who has over 15 years experience in sales marketing and management.
The problem with one-to-one trading is the incidence of coincidence that is each business must want what the other has to offer. In our exchange, however, everyone can trade with anyone even if he does not want what the other person has. Trade credit can often be spent just like money – on items everyone needs and often wants.
When The Barter Network® does not have something a client needs, it is our job to find it for them, whenever possible. As new businesses are solicited to join The Barter Network®, we only approach those who can fill the needs of our current clients. To get the most benefit from our exchange, each business should give us as large list of its current and future needs. Trading can never fill every need, but a large enough list will usually allow everyone to spend his trade credit productively.
When a client makes his long list of needs, he should think of everything for which he spends his cash. He should not limit himself to worrying about one or two single purchases. He needs to look at his business checkbook for the last six months as a memory aid and think, too, of his personal needs. If he regularly takes cash out of the business for personal living, travel, home improvements, etc., why shouldn’t he take out the barter income instead and save the cash for products and services the barter network cannot so easily acquire?
Clients should only trade in proportion to their ability to spend the trade credit they earn. If someone sells products or services that are in high demand, it may be necessary for him to limit his trade activity. The best way to do so is to have The Barter Network® manage the flow of trade business that comes in. When the client has reached his limit The Barter Network® will stop referring new customers until he is ready to resume trading.
This problem should only be temporary if the products or services are marketable. The amount of business a client receives, however, will depend upon the particular type of business along with normal supply and demand factors. If a client is not getting as much business as he wants, The Barter Network® may also be able to help. We are concerned about balancing supply and demand as carefully as possible. We will also help everyone promote their products or services to other clients.
Yes. Printing, for example, that might be done in five days for cash, might take ten to fifteen days for trade. Service businesses must give priority to their cash business. Trading represents that extra business used to fill the sporadic lulls in business activity. This situation is not really a disadvantage to the trader if he does not expect to use The Barter Network® for emergencies. Careful advance planning, along with patience, is required to make trading a pleasant and profitable experience.
I am looking for a large computer. If I save my trade credit, can I get it through The Barter Network®?
Saving trade credit in order to purchase a very specific high-demand item can only frustrate and discourage a client. To get the most benefit from The Barter Network®, each client should provide Our Staff with as large and as diverse a list of his needs as possible. Everyone should spend his trade credit as he goes along, never saving it for something that may or may not become available when he needs it.
Many clients use trade credit to pay employee bonuses. Some even pay employees a portion of their regular salaries in trade credit. At your request, we will set up employee sub-accounts and will assist your employees in spending their trade credit as advantageously as possible. The employees, of course, need not pay our broker’s fee. The client can pay this when credit is transferred to any employee’s sub-account. It is also possible to pay some bills with trade credit. We can help a client’s creditors spend their trade credit on the goods and services they need just as we would help his employees. Paying bills with trade credit is just one more creative way to use trade credit. The Barter Network® can even use trade credit to help clear past-due accounts receivable. A creditor of a client who is unable to pay the money he owes might be willing to pay the barter system with his products or services. If these products or services are acceptable to The Barter Network®, we will purchase them and credit our client with the transaction. That client can then use that credit to obtain needed goods and services.
According to our trade rules, any client who quits The Barter Network® must be given three months to spend his trade credit balance. Extensions will be granted to clients with large balances.
Trade income is the same as cash income for tax purposes. There are no inherent tax advantages or disadvantages. Trading should be considered a marketing tool, not a tax tool. As with cash income, however, trade purchases that are business-related are also tax deductible.
At the end of the year The Barter Network® totals trade sales and submits this information to the IRS on form 1099B US only . The Barter Network® also furnishes each client with a copy of this form for their records.
Essentially the market determines pricing just as it would for cash. Where the seller has sufficient margin, he is expected to trade his goods and services for barter at the same price, as he would sell them for cash. Where margins are tight, a seller is allowed to adjust his price to manufacturer’s list price. Such a situation regularly occurs with electronic items such as television sets and copiers. By accepting or rejecting prices, The Barter Network®’s members act as the ultimate authority in pricing integrity.
Actually they are not always higher. But, in those instances where they are, each client must consider how much he has actually invested in the trade credit held in his account. If the merchandise cost is fifty cents on the dollar, $10,000 worth of trade credit actually costs only $5,000. If the client is in a service-related business, the trade credit may only cost him his idle time. It will often be less expensive to pay full retail price with trade credit than to get the same article at a discount for cash. Seasoned traders are always aware of this difference and use it to their advantage. On the other hand, if someone overprices his products or services beyond a reasonable limit, no one should do business with him but should call our office for another referral.
Yes. You should only trade what you want to trade. The idea of trade is to move excess inventory or that inventory which gives you an advantageous profit margin.
Can I use my trade credit to negotiate purchases with businesses that are not clients of The Barter Network®?
Absolutely. However take care not to promise anything without first checking on its availability with The Barter Network®. A client purchasing a $10,000 car from a non-client, for example, might ask the non-client dealer if he would accept goods and services for the down payment. If the dealer accepts, and if The Barter Network® has what the dealer wants, the trade can be made. Clients are always encouraged to negotiate at least a small trade component for purchases with non-client businesses. We are always willing to assist you in putting any special trade together.
Absolutely. You may spend your trade credit with any trading client of any organization that belongs to our national trade networks credit clearing systems. Thus, you gain access to the products and services of literally thousands of businesses across the country. Arrangements, however, must be made in advance through our office.
When you are ready to barter, a member of our sales staff will meet you, have you sign a contract, pick up your check, and discuss with you what you want to trade as well as how you will spend your trade credit. Our inside staff will help to arrange and walk you through your first sale and continue to suggest ways for you to spend your trade credit.