What is barter?

Barter is the exchange of goods and services without the use of cash. It is an oldest form of trade known to mankind. Today, barter is sophisticated trading system which benefit all parties involved.

How will my business benefit from barter?

Businesses can use trade to increase sales, increase purchase power and expand geographically.

Barter bring you buyers who otherwise would not buy from you using cash, rather it's due to the distance, familiarity or the cost. When you've establish a good business relationship with these buyers, they become your continuous source of revenue, plus they will give you referral, advertising and information that may help your cash business.

With the additional sales of your product or service through barter, you'll increase your purchase power while reduce your capital expenses. You purchase product and service you need at your marginal cost. In essence, you trade to get a discount on everything you purchase and so is every member in the trade exchange.

Barter allow you to trade your product or service beyond your current geographic location. A distant buyer may come to you simply because you'll save him money, just as if you're willing to drive across town for a product you need simply because there the price is cheaper than a business within walking distance. In the same token, your business now have a foot hold at your buyer's geographic location. Therefore, allowing your business presence to be known beyond your current market base.

What types of business barter?

Any businesses with product or service which there exist some demand are eligible to barter. The level and the volume of trade is depended on the industry a business operates in. Industries such as banking, insurance, health care and utilities may do very limited trade if none because their cash business is at 100% capacity.

I can trade on my own, why do I need to join ABC?

One to one trade is very limited. First, you must want what the other party has to offer and vise versa. Second, given two parties found each other's goods desirable, the next question will be in the interest of fairness, how much should be traded.

Finding the first can be cumbersome, negotiating the second can be tricky. By joining the ABC trade exchange, you can trade with anyone in the membership rather you have the goods they want or not. And the value of your goods is based on the cash currency system, thus provide a friendly environment for trade and reduce the potential for heated exchanges. All transactions are credit/debited within our exchange and we provide a monthly statement for your convenience.

What's my business relationship with ABC?

The sales personal at ABC is like an extension of your sales force. We can help you find businesses with product or service you need or businesses who needs your product or service.

Our brokers is like your marketing team and purchase agent. We can promote your business among our membership and help you purchase product or service with minimum use of cash.

What can I sell and purchase using barter?

Any product or service which there exist a demand can be traded. Contact your broker at ABC with product or service you need or have to offer, our broker and sales force will help you locate the buyer or seller you need.

What control do I have over barter?

You have total control. You decide when to barter, how much business you want to do in barter and where you like to do your barter business. Just call ABC and tell us your preference.

How often should I barter?

Barter is very flexible, you can choose to barter only during the slow seasons or on a regular basis. The benefit of barter can be realized if you conduct trade on a continuous basis. The cumulative trade experiences will help you become familiar with the type of trade that work best for you and help you expand your business opportunities.

Can I trade everything through barter?

No. Certain product and service require partial or full cash payment. Here is an example of items that can not be bartered: tax, mortgage payments, tips and utilities etc.

How long will it take to barter?

In many occasions, the product or service you need may not be available when you need it. There are many reasons for this occurrence.

• The potential buyer or seller is not trading at the time due to product availability or is too busy with cash business.
• There may not be a business in our network which provide the product or service you need and our sales representatives need time to locate potential new traders for your request.
• A potential buyer or seller may belong to another trade exchange and we need time to locate and confirm the availability of such trade with the other trade exchange.

We recommend that you plan ahead and call our brokers at ABC. If you trade in the last minute, you may be disappointed.

Can I always get what I needed from barter?

Not always. High demand product or service may be difficult to find on trade due to availability or low profit margin for the seller.

How can I barter goods and services outside my own city/state?

Simply call our brokers at ABC trade exchange and tell us what you have to offer or what you need for your business. ABC maintain reciprocal trade relationship with trade organizations through out US.

How does barter works within ABC?

All transactions between the members of ABC trade exchange are approved and recorded automatically or manually by our computer system or brokers. Seller and buyer's accounts are credited and debited accordingly. All transactions are final upon confirmation of the completion of trade and service fees are charged accordingly. A monthly statement which reflects all transaction and service charges within the previous month(s) is provided for each member.

How do trade dollar works?

One barter dollars equals one US dollar. Your provide your product or service at your market value. The trade dollars you spent or earned are trade credits within the ABC trade exchange. Member of the trade exchange participates in a macro economy where trade dollar is the currency of exchange. Your transactions are credit/debited by ABC trade exchange. You have to earn trade dollars before you can spend it just like you would do with cash.

Is barter legal?

Yes it is. In 1982 the barter industry is officially recognized by the federal government through the "Tax Equity and Financial Responsibility Act" (TEFRA) and made trade exchanges formal third-party record keepers along side with banks, security brokers, and credit unions etc.

Are there any tax in barter?

The IRS and tax law treats barter business same as cash business. Any barter sales are taxable income just like the cash income. Affiliated Business Commonwealth report all transactions of its membership to the IRS and to each of the member on a Form 1099-B at the end of the year.

How do I join?

Complete the membership request form or call ABC Barter and arrange for an appointment with our sales representatives. We will come to you will all the information you need to join our trade exchange.

Can I wait and see if barter is right for me before I join?

You can, but we can not guarantee the approval of your application when you do decide to join someday. The law of supply and demand dedicates the number of businesses the trade exchange can maintain for a particular industry in a particular geographic region. If you wait until your competitions have joined and received the benefits of barter, it may be very difficult for the trade exchange to accept your membership application.

What is NATE?

National Association of Trade Exchanges is the barter industry watchdog that provides training and information to its member trade exchanges. NATE promotes the ethical and fiscally responsible operation of its member trade exchanges.

Plan your trades in advance - Don't wait until the last minute to arrange a trade, many business only trade at certain times or quantity, or if the cash business is overwhelming, barter business will be put on hold. Members are more willing to do barter business during their slow times. Plan ahead or you may be disappointed.

Build barter into your business routine - Analyze your business for product and service that can be bartered. Ask yourself the following questions:

• Do I really need to spend cash on everything needed to run my business?
• Do I really need to pay cash on services my business need regularly?
• Do I really care how much it cost to take my clients to lunch/dinner?
• Does my business have difficulties in finding new source of buyers?
• Does it cost me too much to take a business or personal trip?
• Do I have non performing assets sitting at my warehouse or showroom?
• Do I have something I want but my cash is tight?
• Where do I like to allocate my working capital if there is more cash available?
• How much can I offer to barter without degrading my cash business?
  

Act quickly, good deals don't last - Watch out for the goods or services you need, buy when they are available in trade. It may not be there by the time you want them. Many times, member will come to ABC with special product or service to trade, when you see sale promotion in faxes from ABC or special items on ABC web site, act immediately. Good deals go fast.

Never pay more - Always prepared to pay in full price. Discount trade are rare and seasonal, buy when they are offered. Shop cautiously and never pay more through barter. Cash and barter customers are equal in every way, comparison shop is essential, report any unfair trading practices to your trade broker at ABC. Spend your trade dollars as if they are cash dollars, because they are after all, a form of business earning, wasting trade dollars is the same as wasting cash dollars.

When ever possible, trade first, cash second - Pay for the key business services with the trade dollars you've earned. Minimize cash expenditures whenever possible. Spend cash only if you can not get what you need from barter.

Build relationship with other traders - Maintain regular purchases cycles with members who supply you with what you need. Establish good trading relationship to ensure that you will always be able to receive the product and service when you need it the most. In time, you'll learn what kind of trade work best for you and your business.