Q: What are the advantages of trading?
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 trade your own goods and services. This means more cash stays in your business for other purposes. Finally, trade puts idle resources to work. Excess time, excess inventory, and capacity are converted into needed goods and services.
Q: How does trade work within the association?
Clients of a trade association use trade credit, instead of cash, to handle their transactions. If a client trades $1000.00 worth of goods and/or services to another client, his trade account will be credited $1000.00. The client then can use these trade credits with another trading client. We are simply a third party record keeper, sending monthly statements to all clients showing their purchases, sales and current trade credit balance.
Q: I already trade on my own, why join the association?
One-to-one trading results in each business having to want what the other has, and they don’t always feel they are trading equally. In our Association, however, everyone can trade with anyone else even if he/she does not want what the other person has to offer. The credit can be spent just like money – on items everyone needs and wants.
Q: What If I cannot spend my trade credit on the things I need?
When an Association does not have something a client needs, it’s our job to find it whenever possible. As new businesses are solicited to join the Association, only those who can fill the needs of our current clients are approached. To get the most benefit from our Association, you should give us a list of your current and future needs. Trading can never fill every need, but a large enough list will usually allow you to spend your trade credit.
Q: What if I earn more trade credit than I can spend?
Clients should only trade in proportion to their ability to spend the credit they earn. If someone sells goods or services that are in high demand, it may be necessary for him to limit his trade activity. The best way to do this is to have the Association manage the flow of trade business that comes to you. When you have reached your limit we will stop referring new customers to you until you are ready to resume trading.
Q: Can the association loan trade credit to clients?
Trade credit lines can be set up for clients just as a bank gives credit lines to its qualified customers. All trade credit loans are backed by acceptable collateral under guidelines established by the Association.
Q: Can I pay my employees with trade credit and expect that their needs can be filled by the Association?
Yes. 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, will not pay the 10% broker fee. This must be paid by the client when the credit is transferred to an employee’s sub-account.
Q: Are there any tax advantages to trading?
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 deductable.
Q: How do I know how much trade income to include on my return?
At the end of the year, the Association will total your trade sales and submit this information to the IRS on form 1099B. The Association will also give you a copy of this form for your records.
Q: How will you keep track of my account?
The seller will simply call Absolute Barter Co. office for an authorization number and your account will credited. Once you receive the authorization number, enter it on your invoice or record keeping file. You can then have the purchaser sign and give them a copy of you invoice if available. You also receive a monthly statement recapping all purchase and sales. Please be sure to view your statement.
Q: Who is the president and owner of Absolute Barter Company?
Ardell M. Taykowski, president and owner. She comes with over nine years of working in the barter industry as a certified trade broker and sales person. Ardell has received many awards and certificates in brokering, sales and management.
Q: Why Charge the buyer commission and not the seller?
Absolute Barter feels that we should benefit only when the client benefits.
Q: What if I quit the association? What happens to my trade credit?
According to the policies and procedures, any client who quits the association will be given 90 days to spend his trade credit balance. Extensions will be given to clients with a large balance.
Q: What if I do not get any business through the association?
This problem should only be temporary if your product or service is marketable. The amount of business you get, however, will depend on your particular type of business along with normal supply and demand factors. We also suggest you supply from time to time a brochure or flyer for our monthly mailing, this will also help to send you more business.
Q: How do I know I’m getting the best price?
Absolute Barter will guarantee that you will receive the prevailing retail pricing when purchasing from another Absolute Barter client. The number one policy in barter, that all clients sign off on, and agree to, is fair retail pricing. Please note, there are no discounts or coupons used along with barter purchases. If a client over charges because of a trade transaction, their account will be terminated immediately.