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There are many reasons why more and more businesses are bartering their products and services, but underlying them all is one fundamental business motivation: PROFIT. Businesses profit through barter from:
- Access to new markets and customers
- Conservation of cash flow
- Availability of alternative financing
- Outlet for unused production capacity or inventory
- Lower purchase costs
- Enhanced quality of life
WHO BARTERS?
Large and small companies are doing interesting barters each day. Best known are the barters of large companies:
- Textron traded $55 million of milling supplies to Poland for copper and brass.
- General Motors traded
locomotives for tea in Sri Lanka,
.......then sold the tea for cash to an English tea dealer. - Eaton Corp. traded truck transmissions for axles.
- PepsiCo trades Syrup and Technology for Russian Vodka.
- Also: Pitney-Bowes, Republic Airlines, Standard Brands, Mitsubishi, Xerox, and hundreds of other Fortune "500" companies
HOW DOES IT WORK?
As a client of the Commerce Exchange, you receive "Trade Dollars" by "selling" your goods or services (at regular retail price) on the exchange. The trade dollars you earn are then spent INSTEAD OF CASH for a variety of purchases from other TCE clients.
The best part is this: your purchasing power with the other merchants is equal to the retail value of goods sold in the trade transaction, while your actual cash outlay is limited to your cost before mark-up, and maybe less when dealing with excess inventory.
The transaction itself is handled simply as a credit card purchase. The purchaser presents his TCE card, and the selling merchant records the transaction on a three-part sales form provided by the exchange. The merchant sends one copy to the exchange for computer entry, keeps one copy for his records, and gives one copy to the purchaser as a receipt. Every client receives an itemized monthly computer statement showing both sales and purchase activity.
HOW CAN I OBTAIN THE THINGS I NEED?
To promote the use of trade, we provide the following to our clients:
- Regular informational mailings which include promotional materials submitted by clients to generate trade business and client updates.
- TCE’s Trade Brokers work with each client, assisting them with their trade needs.
- A sales staff to follow up on new client leads and referrals.
CAN I CONTROL TRANSACTIONS?
Absolutely. The clients who wish to trade daily are placed in our Client Directory which is distributed to every client.
Others who wish to limit their trade are placed on a computerized list in the TCE office and are referred, to clients by our trade directors.
When clients call in with a need, the trade director can match this need from the computer listing.
The number of purchase transactions you make is only limited by your trade credit balance. Lines of credit are sometimes available. The Exchange makes every effort to refer as must business as you can handle, and tries to assure every client a favorable "balance of trade".
WILL I BE COMPETING WITH OTHER BUSINESS LIKE MINE?
TCE screens all applicants for their ability to expand the merchandise and services offered on the exchange. We limit the number of businesses that offer the same product, so you will actually have less competition than you do in the cash marketplace. TCE clients are motivated to do business with you rather than your competitors. Barter is your competitive edge.
DO YOU HAVE EVERY ITEM I NEED?
The Exchange is more accurately compared to a stock exchange than to a buyer’s service. That is, only those items which are currently available can be traded.
These items are subject to the same laws of supply and demand that operate in any marketplace.
Remember, if you want an item or service, and you can’t immediately get it throng the Exchange, it is not for lack of willingness on our part, but rather to limited availability. Clients often help themselves by suggesting a TCE account to a company that has the goods and services that they want.
IS BARTER LEGAL?
The barter industry is now officially recognized in the law. Under the "Tax Equity and Fiscal Responsibility Act of 1982", the new legislation recognizes barter etchings as third-party record keepers. Barter exchanges now rank on an equal footing with banks, credit card issuers, securities brokers, attorneys and accountants as legitimate custodians in the eyes of the law. A 1099-B report is provided for your accountant annually.
Trade income and expenses (trade purchases) should be included in your tax return and are easily integrated into your existing accounting systems. A computerized statement shows sales and expenses each month.
WILL MY JOINING AN EXCHANGE SOLVE ALL MY FINANCIAL PROBLEMS?
No! And no legitimate trade exchange would ever make such a claim. While barter has many positive things to offer, it is not an end unto itself. It can only help to increase sales, and reduce expenses. You’re still the boss.
THE
COMMERCE EXCHANGE
P.O.Box 11187
Jacksonville, FL 32224
(518) 465-4255