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Frequently Asked Questions
About How Barter Works

 

Can I Advertise With Trade Dollars To Increase My Cash Business?

Advertising means cash dollars to your business.  You should consider using your trade dollars to advertise in the many media represented by members.

Check with Central Barter to see which media services are available.  You may even be able to trade for copy writing, design, production of your advertising and translation of ad copy.

Typical services available include the following:

NEWSPAPERS: Weekly, biweekly and monthly;

RADIO: Copy writing and production available at some stations.

MAGAZINES: Some national and local.

DIRECT MAIL:  From concept to mailing, including printing, labeling, etc.

REGISTER TAPES: Available in many grocery stores.

PRINTING: Most varieties.

GRAPHICS: Layout, composition of brochures, flyers, logo design.

SIGNS: Posters, storefronts, lettering.

SPECIAL NOTE:

It is most important that you contact Central Barter, Inc. before discussing advertising with any of our media members. If you are already a cash customer, we will need to establish certain conditions for trade.  If you are not a cash customer, we need to have the correct media personnel contact you.

Can I Use Trade Dollars For My Customers?

Using your trade dollars can be an effective way to let your customers know you appreciate their business.  You might want to use your trade dollars to buy your customer an attaché case, watch, pocket calculator or any of the many other items available through other members.

Businesses spend thousands of dollars for Christmas gifts for customers.  Using trade dollars for Christmas gifts and for other types of gifts will help save your cash reserves.

Contests to increase the traffic in your business might award prizes purchased with trade units.  For example, the grand prize could be jewelry, a trip, a radio or other appropriate prize – all of which could be purchased with trade dollars from your account

 

How Can I Use Trade Credits To Reward My Employees?

Most companies, intent on attracting quality personnel, try to provide a generous employee benefits program.  Such programs often require a sizable cash investment.  As a viable alternative, we have developed several programs that you can offer your employees on trade.

Your company can put together an ongoing benefits program that offers your employees conventional benefits that are paid for with new sales.

1. MEDICAL BENEFITS

Companies frequently strain to provide good medical benefits for employees and sometimes end up with “bare bones”  protection. Barter can significantly improve the affordability of added medical benefits in several ways.  Dentists, orthodontists, chiropractors, eye care, health club memberships and other medical services can be bartered.

Some companies have allowed a set number of trade credits, perhaps 500 or 1000 per year per employee, to spend on bartered medical services.  Another option would be to offer a substantial discount when purchasing trade credits to be used this way.  Such a plan would make dental and optical protection much more affordable for both employee and employer.  Compared to the cost of an insurance policy that includes dental and eye care, the barter plan may be quite attractive.

2. INCENTIVE PROGRAMS:

Many management teams rely heavily on incentives to help motivate employees.  Incentives for reaching sales goals, perfect punctuality, productivity-enhancing ideas or any other admirable performance can be paid for with barter credits to purchase restaurant scrip or merchandise, which can be awarded to deserving employees. One Central Barter member has given trips to sales people reaching their sales goals. Central Barter suggest that the merchandise be displayed to motivate employees to attain their goals.

3.  EVENTS

Company social events build team spirit and boost morale – but can be expensive.  It is common to barter for a restaurant or caterer for a Christmas party or to buy trophies, awards, T-shirts and game prizes for a company picnic.  Reduce the cost with barter.

4.  TRAINING

Employee training programs are something that you probably wish you could afford but don’t quite have the budget.  Not surprisingly, barter can help.  Check into the member(s)  providing classes.

How do I Communicate With Other Members?

Central Barter has developed a system for communicating to members the availability of goods and services within the exchange.

NEWSFLASH messages are sent weekly to update members on new products and services available.

FLYERS AND BROCHURES supplied by members are included in Central Barter mailings to all members in the exchange.

Periodic phone calls and visits to a member’s place of business keep Central Barter’s staff updated as to the services and products offered by members in the exchange and assist members in spending their trade dollars instead of cash.

Telemarketing by Central Barter’s staff keeps members up to date on new members plus promoting holiday and seasonal products and services available in the exchange.

Trade Shows sponsored by Central Barter allow members to display their products and explain their services to other members and also allow members to purchase from each either.

A Directory of Products and Services is published by Central Barter periodically and distributed to members.  The Directory lists each business by category.  A contact person is included in each listing.

What Are The Availability of Products and Services?

Central Barter, Inc. offers a wide variety of products and services, and we are constantly expanding our list of members.

Your interest and help will contribute to the growth rate of the system.  Perhaps you need an item or service currently not available.

Let us know, and we’ll work to find it.  Give us as much lead time as possible, though.  We have never pretended that all things are available on trade, but hundreds of items and services are.  If we don’t have what you need, or can’t get it, we will tell you so.

Referrals Help Us Grow

There are hundreds of quality businesses in our area which would benefit from organized trading if they only knew how it works to their advantage.  Perhaps you know some business owner who could benefit from an association with other businesses … someone who could offer a product or service on trade.

The advantages of generating new members for your trade exchange are clear.  As Central Barter, Inc. expands, the exchange becomes more useful to you because, there is more from which to choose.  It’s now YOUR EXCHANGE, and it works for YOU.  It will continue to grow with your help and referrals, and as this happens, it works even better for you.  Each referral is another step toward a stronger, more useful exchange for all of us.

 

What does it Cost For Membership? 
 

One-Time Minimum Deposit of $500.00 cash is required to open the account. 

  Monthly Service Fees: Cash None and Trade None

   You are a part of a stable exchange with
a great variety of goods and services.
 

How Does CENTRAL BARTER, INC. Make Money?

Central Barter cash flow is produced by charging a fee on trade dollars used in the system. When you spend or earn a trade dollar, you pay Central Barter 5 to 8 cents cash.  

Services   Salesperson   Record Keeper   Procurer
We do ALL of these jobs for our members.

WELCOME to the world of barter. The introduction of barter into our 
cash-oriented world is enjoying a boom of enormous proportions.  
Your arrival is timely.

Through the years, successful business minds have sought out and recognized unusual business opportunities.  The increasing interest and acceptance of barter as a profitable way of doing business rivals the great business booms of modern times. As a business owner, you have joined an elite part of the business community.  And, although barter is as old as man, today old methods have given way to new systems, new sophistication and new success.

From this time forward, it will be the responsibility of CENTRAL BARTER, INC. to help teach, guide, counsel and advise you in the world of barter.  It has been our experience that members who stay in close contact with us are far more productive traders than others.

All systems, methods, procedures and supplies have been developed with this in mind.  This manual has been devised as a training, orientation and reference tool.  We have found that careful and thoughtful application of the principles and policies contained herein, along with close cooperation with CENTRAL BARTER is the shortest route to a successful barter experience

WE OFFER YOU:
BETTER CASH FLOW
INCREASED SALES
GREATER BUYING POWER
 CENTRAL BARTER IS A THIRD-PARTY RECORD KEEPER AND BANK THAT BUILDS THE TRADE ORGANIZATION.

 

OTHER BARTER QUESTIONS

What is Barter?

Barter is the exchange of goods and services without the use of cash.  People can Barter on a one-to-one basis or they may choose to use the services of a Trade Exchange

 What is a Trade Exchange?

A Trade Exchange is similar to a bank except that it uses Trade Dollars as a medium of exchange to help facilitate trading between it's Members.  In addition, it provides the accounting services and statements that help Members keep track of their balance and trading activity.

 l Why join a Trade Exchange?

A Trade Exchange eliminates the limitations of one-on-one Barter where each business must want what the other business has to offer.  When You belong to an exchange You are paid in trade dollars, which You can then spend with any other Member.  This way when You are the Seller You do not have to turn away any business because You don't want what the other person is offering.  Using Trade Dollars also helps when You want to make a Purchase and the other person doesn't want what You have to offer.

A Trade Exchange will Save You the Time and Effort of having to find compatible Trading Partners.

A Trade Exchange helps You market Your products and services to other Members.

An Exchange acts as a third party record keeper, providing monthly statements to clients, which reflect all trade purchases, sales and a current trade dollar balance.

When You are a Member of a Trade Exchange You do not have accounts receivable to collect or bad debts to write off . You are paid at the time You provide Your product or service.  

Who can barter?

Any business owner, professional or individual who has a product or service to offer on trade for which there exists some demand.  The higher the demand for Your product or service the more opportunities you will have to trade for the products and services You want and need. 

Who can benefit from barter?

Just about any business with excess capacity or surplus or slow moving inventory can benefit from bartering. This is especially true if Your inventory is perishable like radio time, billboards, hotel rooms, airline tickets, empty tables at restaurants, event tickets or Your time if You provide a service.  A key consideration is that Trade Dollars have a storable value and Your perishable inventory doesn't. 

Can I get anything on Barter?

No. There are some things that you probably won't be able to find on trade, including:  utilities, tips, mortgage payments and money payable to local, state and federal governments ( taxes, business licenses, traffic fines) etc.  Also items with thin margins are rarely available in a Trade Exchange.  You can however, use Barter to "Free Up" cash to pay for the things You can't trade for. 
(See next two Q &A) 

Why use trade Dollars instead of cash?

Maximizing cash flow is a top priority of all businesses, small and large.  Using trade dollars, as an alternative to spending cash, helps You conserve cash. 

l How can Barter increase my cash flow?

There are several ways in which barter can increase Your cash flow:

Business and Personal expenses can be converted from cash to trade transactions, thereby freeing up Your cash.

The New customers You get through Your Trade Exchange are great sources of Referrals and word of mouth advertising to attract New Cash Business.

You can use the Trade Dollars You earn to purchase all forms of media advertising to attract more Cash Business without the out-of-pocket cash costs.  

What does it cost to Join a Barter Exchange?

Most Trade Exchanges have an enrollment fee of $195.00 to $995.00.  

Are Trade Exchanges legal?

Yes. Under the "Tax Equity and Financial Responsibility Act of 1982", the federal government officially recognizes Trade Exchanges as third-party record keepers-meaning they record barter transactions and report client barter income to the IRS.  This puts Trade Exchanges on equal footing with banks, credit unions, securities brokers and others as legitimate custodians in the eyes of the law. 

Are there any tax advantages to barter?

There are no tax advantages or disadvantages to barter.  The tax code treates barter transactions identically to cash transactions. Barter sales are considered taxable income in the year they are credited, barter purchases and related barter expenses are considered tax deductible expenses.  

What percent of my business can be done in barter?

Many barter experts recommend that bartering be kept to no more than 10% - 15% of Your total business. I believe there are too many variables that are unique to each business to make a blanket statement.  The best thing to do is evaluate Your current business situation and decide how much You can safely trade without adversely affecting Your cash flow. 

Why do some products and services cost more on Barter than for cash?

Because the cash economy is so competitive You can always find someone who is willing sell their products and services at steep discounts or even at a loss.  In a Trade Exchange, Members sell their products and services at full retail value.  On the surface it would seem like You are better off paying cash, however this is only half the story.

Although on a retail for retail comparison the cash price may be lower on a particular item, You have to take into account the cost of Your Trade Dollars which is the wholesale cost of Your products and services.  Since You are effectively buying at Your wholesale cost You may find You are actually better off paying for the item with Trade Dollars.  

How should I price my Products and Services?

You should charge the same prices as You would for cash, but may exclude sale & discounted products & services. 

What if I prefer to have a broker to help me with my trades?

If You prefer more personalized service You can have one of our Trade Brokers help You with Your trades. 

How can You prevent inflation in International Barter Alliance USA?

Inflation is a big problem for most Trade Exchanges and left unchecked can ruin the entire pricing structure of the system.

First, it is important to understand that prices in a Trade Exchange are generally higher because Members are allowed to charge the full retail price for their products and services and are not expected extend sale prices or discounts.  For example hotels can charge their full rack rate on Trade but offer Corporate rates and may heavily discount their rooms online for cash.

What we want to prevent are price gouging and other unfair pricing practices.

Although we will do our best to prevent this from happening some situations are out of our control. For example since we are a part of a Network of independent Trade Exchanges we can't control how their Members charge for things.

While we will attempt to weed out Members who abuse the system, our best line of defense against inflation is You. Here are some things You can do:

Do not proceed with the purchase.  Let us know immediately and we will contact the seller and try and rectify the situation.

Look to see if there is another Member who is offering the same product or service.

Ultimately You have the final say.  If You cannot get what You want at a fair price, don't buy it. You can always use Your Trade Dollars for something that has true value to You.

Most importantly, don't compromise Your integrity by raising Your prices.  

Can I charge part cash?

Yes, however, the first $1,500 of a Trade must be 100% Trade Dollars. On the amount in excess of $1,5000 the seller may charge cash or a cash / trade blend, which would be agreed upon by the parties involved.

 Any seller may collect cash for tips, sales tax and shipping if applicable. 

What if I have a problem with another Member?

If You have a problem with another Member please notify us by e-mail immediately.
Although we are not responsible for resolving disputes between Members we will, in most cases, try to rectify the situation.
 

What if a Member does not play by the Rules?

If a Member does not abide by the Terms & Conditions or Policies & Procedures their Membership is subject to suspension or termination. 

Can Members sell used items on trade?

Yes. The item(s) should be specified as used, must be in good to excellent condition and priced at the fair market value

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Central Barter Inc.
594 Sawdust Road #300
The Woodlands, Texas 77380
281-642-2280
     Fax 281-367-3622

 

Webmaster: michaelslucas@yahoo.com.         
Copyright ©2002 Central Barter. All rights reserved. 
Revised: December 02, 2005 .