How will BarterZone Trade Dollars benefit me and my business?
Group: BarterZone Trade Dollars ''What are the benefits to any Buisness"
Read More: Through Increased Income
BarterZone allows you to create additional income through giving you the means to buy and sell goods and services with other members (individuals and businesses).
Save your Cash
BarterZone allows you to buy products and services from participating members using Trade Dollars. Essentially you are swapping the items you want to sell for goods you want to buy. Trading in this manner affords you the opportunity to pay with your own goods or services for goods and services you need, thus letting you save cash for other purposes.
Buy and Sell
As a BarterZone member you will be able to do this – you will be able to deal direct with other members that have items you want to purchase, and you will also be able to sell items you no longer want or need to other members.
Ability to make new Cash Sales
BarterZone members don’t just trade with each other, they typically refer their ‘cash’ customers to BarterZone members who have provided good service, thus generating cash sales referrals.
Customer Loyalty
BarterZone members typically do business with each other, building loyalty. This loyalty means BarterZone members bypass the competition to deal with each other.
Why do Consumers Barter
Save Cash
Convert your goods and services into BarterZone trade dollars that work like cash to purchase needed items.
Go to your garage, your closet and turn those “extra things” you’ve got around your home into purchasing power to improve your lifestyle and save money on things you might otherwise spend cash on.
How about that used set of golf clubs, art, clothing, a lawnmower, or just about any product that you might find you no longer need. List it on BarterZone and watch your goods sell.
List your Goods for Free
Think of BarterZone as a company similar to TradeMe, but instead of buying and selling using cash, our members use trade dollars, or credits.
Plus of course there are no listing fees.
List your Services for Free
Whether you are already employed full time or part time or unemployed you can offer your services for Barter Dollars and get paid for anything from data entry to house sitting. You do not need to own a business to Barter.
How about piano lessons, pet feeding, handyman services, tutoring, etc. You are only limited by your imagination.
Reporting
BarterZone serves as a clearinghouse and record keeper for its members. BarterZone tracks all transactions and provides statements online 24 hours per day for all its members. Sales are deposited into your account and purchases are deducted from your account. It’s really that simple!
No Bad Debts
BarterZone takes the aggravation out of collections. When you make a barter sale to a BarterZone member there are two ways you can get guaranteed payment.
- Online payment from another member
- By phoning our 0800 number for authorisation
Get paid by someone that owes you money
If you have someone that owes you money BarterZone can arrange (in agreement with the other person or company) to pay you the debt in full using BarterZone trade dollars and then you can use those trade dollars to purchase goods or services from other members.
Reduce the Cost of Borrowing
Rather than paying cash interest on personal loans BarterZone can extend you a credit line against your future barter sales.
Why Do Business Owners Barter
Save Cash and Improve Cash Flow
Convert your goods and services into BarterZone trade dollars that work like cash to purchase needed items.
There are two primary avenues to increase cash flow – increase sales and decrease costs. Achieve both with barter! Barter lets you to pay for what you need with what you have – permitting you to retain working capital for other needs. Using barter instead of cash to purchase needed services and products – you decrease your cash costs by paying for them with revenue from new barter sales. When you purchase a product or service using BarterZone trade dollars, it will be paid for with new business… sales that probably would not have happened without the BarterZone Exchange.
Attract New Customers
Gain exposure to thousands of dollars in new business with no additional marketing or advertising cost. Every trade through BarterZone is a new-found sale for your business.
Barter Means New Cash Sales
That’s not a misprint – yes, we said cash sales. When you complete a good job for a BarterZone Trade Exchange client, they will direct their cash-paying family, associates, friends and customers to you. Growing your business will always be linked directly to referrals from your satisfied customers. BarterZone Trade Exchange continually strives to improve your overall bottom line. When you become more successful, we become more successful.
Increases Sales!
Membership in BarterZone brings you additional sales from your local community and from around New Zealand… at your everyday selling price.
Imagine your products or services being seen by thousands of interested, captive and qualified customers who are motivated to spend their BarterZone trade dollars for things they need. These are sales you are not getting today.
BarterZone promotes your company to hundreds of local companies and provides a nation reach of thousands – potential customers, in addition to your steady cash-paying customers. Buyers seeking barter opportunities from inside the trade network will make successive sales with your company. Businesses trade to buy what they need or want, and pay for them with the additional sales of their own product or service.
Promotion
Once you are a member, BarterZone acts like a 24 hour 7 day per week sales force for your company.
BarterZone Makes Record-Keeping Easy
BarterZone works much like a bank, providing control, keeping records, and supporting administration for your barter activities. BarterZone tracks all transactions and provides statements online 24 hours per day for all its members. Sales are deposited into your account and purchases are deducted from your account. It’s really that simple!
BarterZone Means No Bad Debts
BarterZone takes the aggravation out of collections. When you make a barter sale to a BarterZone member there are three ways you can get guaranteed payment.
- Online using our pay a member facility
- Using your BarterZone eftpos terminal
- By phoning our 0800 number for authorisation
Provide Credit
You never have to extend credit to your customer. Any credit extended to members is done through the BarterZone office.
Collect Slow Receivables.
When a cash buyer has consistently caused a collection problem for you, offer barter as a method of payment – there are no receivables in barter transactions – payment is immediate.
Fill Idle Production Time & Move Excess Stock with BarterZone
Every business owner encounters the dilemma of what to do with excess stock or idle production time. By joining BarterZone, barter provides a solution to put that excess to use in profitable ways. We achieve this by linking your service or product with people and businesses seeking to buy them on trade. It’s a win-win situation.
Achieve a Competitive Edge Through Barter
BarterZone members seek your business over the competition because your BarterZone association is an incentive to do business with you. Barter attracts fresh clients to your business without changing the current cash sales already being enjoyed by your company.
Reduce the Cost of Borrowing
Rather than paying cash interest on working capital or capital expenditure loans, BarterZone can extend you a credit line against your future barter sales.
Q. What is barter?
A. Barter is a way of doing business without using cash. You can buy what you need and pay for it with what you have. A sale is made that would not have happened if cash were necessary. In addition, you will see an increase in cash flow when one trades for an expense that would otherwise be paid for in cash.
Q. What are the advantages of barter?
A. There are many, with the primary being new business. Barter provides you with new customers and allows you to broaden your market beyond your cash-paying customers. Barter also helps in preserving cash. You can trade your own goods and services to buy those things you need instead of spending cash to buy goods and services. Therefore you retain more cash within your business, providing increased cash flow. Barter puts inactive resources to work. Surplus time, inventory, and capacity are transformed into profits.
Q. Why do people and businesses trade?
A. Simply – to make a profit. Trade is an inexpensive way for them to find new customers. And every time they trade for something they need, they conserve cash.
Trading products or services to cover some expenses costs them less than paying with the proceeds from cash sales, so they make a profit.
Q. How do I make a transaction?
A. BarterZone facilitates barter transactions between its members using either special EFTPOS cards or an advanced online trading system – or if you prefer – by old fashioned telephone, fax or email.
Q. How do I purchase using my BarterZone account?
A. First, identify your business and personal cash expenditures that you would like to offset with BarterZone.
Find suppliers through BarterZone using the BarterZone Website, or by contacting a BarterZone Trade-broker on our free-call number.
Pay for the product or service using your BarterZone card, or by paying the other member online at the BarterZone website, by telephoning, email or fax.
Q. How do I sell?
A. BarterZone members are simply agreeing to accept an alternative form of currency for payment. Members are free to purchase any product or service within the BarterZone network in exchange for BarterZone trade dollars (which are equivalent in value to $1 NZ dollar). Each BarterZone member offers products or services for sale in return trade dollars which they can then use to purchase other goods and services.
Q. How does BarterZone make money?
A. There is a small transaction fee. This represents a fee for originating new business for clients of the BarterZone exchange. In addition to your standard cash clients, trade business provides NEW business from NEW clients over and over.
The transaction fees are as follows: New Zealand Exchange Only
Account Type
Cash Fee*
Trade Fee*
Monthly Fee
Personal
5%
1%
Trade
5%
1%
Gold
4%
$50.00 NZD
Property-Platinum
4%
$50.00 NZD
*Cash Fee’s are payable in NZ $ and Trade Fee’s are payable in BZ $
Q. Why do we pay fees?
A. Fees are used for the following:
- Account setup and maintenance
- Maintaining the membership directory
- Providing the Member-only online directory access
- Record-keeping services
- Telephone access to trade-brokers to help you buy and sell
- Telephone access to trade-brokers to help you process transactions if required
- Marketing and promotion to other BarterZone members in New Zealand
- Tracking & Reporting: BarterZone acts just like a bank, keeping track of members credits and debits. Members receive a statement detailing recent transactions, current trade balance and any fees due. All transactions are recorded pursuant to trading procedures, policies, rules and regulations of BarterZone.
Q. What can I barter if I don’t own a business?
A. Individuals are welcome and invited to participate in the BarterZone community. BarterZone is like TradeMe, but instead of buying and selling using cash, our members use trade dollars, or credits. Now, that opens up a whole new world of opportunity!
Q. What can I barter on BarterZone?
A. Services and Products-Any personal or business services can be bartered!
Any personal or business products can be listed to sell, new or used. Think of this as a TradeMe of sorts, but better; it’s trade dollars!Q. What if I get too little business
A. BarterZone works to make sure that its members are satisfied with the level of business they receive through barter. BarterZone guarantees to bring you more business – if you do not receive additional sales as quickly as you would like to, BarterZone will give your service or product free promotion through email, print and telephone to all BarterZone members.
Q. What if I get too much business
A. If you receive too much additional business and can’t keep up, BarterZone will work to find additional businesses with the same product or service, so that the demand is spread out.
Q. Who Else Barters
A. According to the International Reciprocal Trade Association (IRTA), around $600 BILLION dollars are transacted through barter each year. As such, barter is one of the fastest growing phenomena in business today! Companies ranging in size from huge international corporations right down to individuals barter.
Q. Accounting
A. In accordance with General Accepted Accounting Principles, members must record all transactions using the valuation method of $1 BarterZone dollar is equivalent to $1 NZ Dollar. The member creates an account in their General Ledger to record all trade dollar transactions. Similar to a cash sale, when a sale occurs, the revenue BarterZone account is credited. When purchases occur, the asset, or expense, BarterZone account is debited. The BarterZone account will equal the balance of your BarterZone statement at all times.
Q. Tax
A. There is no tax advantage or disadvantage to barter transactions. Income generated through BarterZone is taxable in the year in which the sale occurs. The IRD recognises barter-exchanges as third-party record keepers of barter transactions and stipulates that all trade revenue earned by businesses is treated as income, while all trade purchases for business expenses are treated in the same way as cash purchases, and are tax deductible in the same way.
Q. GST
A. GST is included in the total BarterZone transaction amount. As the seller, you are responsible for paying GST on sales and remitting the GST to the IRD in cash. However, GST expenses can be recouped when you spend your BarterZone dollars within the exchange, provided that purchases made are taxable purchases.
Q. Are there any tax advantages to BarterZone?
A. There are no tax advantages or disadvantages to barter. Barter income is equal to cash income for tax purposes. Trading should be considered a marketing avenue, not a tax tool. However, as with cash income, trade purchases that are business related are also tax deductible.
Q. If I sell to a business who sells a product I can’t use, my barter currency is wasted.
A. Barter is a not a one for one swap. You sell what you have, buy what you need. You accumulate barter currency ($1 BarterZone Dollar is equivalent to $1 NZ Dollar). Sales can be made online, on the phone, or in person. Thousands of likeminded consumers and businesses buy and sell every conceivable product and service using barter, not cash.
Q. Barter can’t pay employees… or can it?
A. Employees are rewarded in a number of ways, for example with a barter paid holiday, dinner for two, ten pin bowling, motor vehicle repairs or you can provide them with BarterZone Gift Certificates. Motivate without using cash.
Q. Barter sounds great but I can’t pay my mortgage with it.
A. You may not be able to pay your mortgage with Barter currency, but you can pay a lawyer, an accountant, advertising, media, PR, marketing services or even acquire office supplies. Barter can free up cash to pay your mortgage.
Q. I’m a service business. All I have is my time.
A. BarterZone is perfect for a service business. When you aren’t working, your time is un-billable. Turn downtime into BarterZone dollar credits.
Q. My business is product intense and margins are low. Barter can’t help me.
A. Is your stock outdated? Without barter you would have to keep trying for a retail sale, or else liquidate it at 10% on the dollar. Barter opens opportunities to trade that inventory at full retail value. Use the barter currency on strategies to grow your business. Transform your obsolete or outdated stock into profit.
Q. Barter won’t increase my cash flow.
A. Barter will expand your business network. As you increase your customer base through barter, you’ll generate more word-of-mouth business. Simply put, barter clients will bring you new cash clients as well.
Q. How does barter work within the BarterZone Exchange?
A. Clients of BarterZone use Trade Dollars in place of cash to handle their trades. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in Trade Dollars credited to their BarterZone trade account. These Trade Dollars can then be used to buy from the other trading clients within the BarterZone network. BarterZone is a third-party record keeper, furnishing online statements to clients, which reflect their sales, purchases, fees and current trade dollar balance.
Q. What does it cost to get started in the BarterZone exchange?
A. For the personal and trade accounts there is no start up cost. For the Gold and Platinum memberships there is a one-time joining investment and a modest monthly administrative fee.
Q. How can one trade more profitably?
A. If you regularly take cash out of your company for living expenses, home improvements, travel, etc. why not take out a barter income instead and save your cash for products and services that BarterZone members may not be able to supply?
Q. Are there any unusual uses for barter?
A.Yes. BarterZone provides endless opportunities. Here are just a few creative ones:
- Pay Employees. Use trade dollars to pay employee perks, bonuses, and benefits. Even pay a portion of their normal salaries in trade. For a nominal fee, we will set up employee sub-accounts and aid your employees in spending their trade dollars.
- Pay Bills. Use trade dollars to pay some of your outstanding cash bills. If you owe a vendor money for a service or product that you just don’t have enough cash to pay – talk to them about settling the debt using BarterZone trade dollars. You can immediately pay them if they join our network and you have a trade balance to cover the amount owed to them.
- Collect Past Due Receivables. Businesses that are incapable to pay money they owe you would most likely be very willing to pay you with their service or product. You may not need their offerings directly, but BarterZone members may have a market for their products or services. We get the Debtor to pay you in BarterZone dollars and then you can use the trade dollars to get products and services you need.
Q. Suppose I want to spend more than what is in my BarterZone trade account?
A. If and when you require an interest free line of credit please contact one of our trade brokers for assistance.
Q. Who decides what prices the seller will charge on BarterZone?
A. In essence, the market establishes pricing just as it would for cash. The seller anticipates to trade their services and goods at their prevailing prices. By accepting or rejecting prices, BarterZone Exchange members are ultimately the determining authority in pricing integrity. To monitor fair trading policies, BarterZone brokers keep in constant contact with Members.
Q. Can I charge part cash and part trade?
A. Yes
Q. I need more cash business. Why should I trade?
A. The sales you make through BarterZone are truly plus sales for you. If you did not belong to The BarterZone Exchange you would never see these sales.
When you use the trade income from these sales to buy things you would otherwise have paid cash for, you are left with cash in hand to use for other things. The net effect is the same as if your cash sales were increasing.
Every time you save a cash dollar it is as good as earning an extra cash dollar.
Q. Why join the BarterZone Trade Exchange?
A. The issue with one-on-one trading that you are familiar with is that each member must want exactly what the other has to offer. Within the BarterZone network, everybody barters with everybody, even if they do not want what the other person has to offer. Trade dollars are credited to a trade account with BarterZone, which can then be spent on any service or item needed or wanted from within the trade network.
We are independently owned and operated and we understand the many ways you can use your goods and services to generate non-cash income, get what you need and want, and build more traffic and referrals.
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About the Author: Terry Cuthbert
Member Since: 03/07/2010
Company: Unlimited Recruiting
Industry: MLM
Primary Web Site: http://terrycuthbert.com