Frequently Asked Questions

WHAT ARE THE ADVANTAGES OF BARTERING?

Trade produces new business and allows you to expand your market. Secondly, trade conserves cash. Instead of spending cash to purchase needed goods and services, you can trade your own goods and services. Therefore, cash stays in your business for other purposes. Finally, trade lets you put idle resources to work. Excess time, excess inventory and excess capacity are converted into needed goods or services.

HOW DOES BARTERWORKS WORK?

Members of BarterWorks use trade credits instead of cash to do business together. If a member sells $100.00 of goods and services to another trade member, that member will receive $100.00 in trade credits, which can then be used to purchase a variety of goods and services from other members. Hotel rooms, resorts, restaurants, advertising, printing and many other goods and services can be obtained with trade credits. BarterWorks is a third party record keeper that sends monthly statements to each member reflecting their purchases, sales and current balance.

HOW MANY COMPANIES ARE INVOLVED IN BARTER?

Nationally, there are over 300,000 businesses, most of them small, currently involved in barter. Based on present trends, 1.2 million businesses will be engaged in barter in North America within a decade. It is estimated that 75% of the Fortune 500 Companies engage in barter in some form or another.

WHY IS BARTERWORKS UNIQUE?

BarterWorks represents over 35 years of experience brokering trade clients. Our knowledgeable staff makes us the organization with which to trust your trade management, trade brokering and trade accounting needs now and throughout the coming years.  Additionally, BarterWorks is the only barter company based in Arizona that is a current member of the Better Business Bureau.

WHAT DOES A BARTERWORKS MEMBERSHIP COST?

BarterWorks has a very cost effective membership fees that can easily fit into any budget - even given todays economical struggles.

I ALREADY BARTER ON MY OWN - WHY SHOULD I JOIN?

The problem with one-on-one trading is each business must want or need what the other business has to offer in equal dollar amounts. Fortunately, at BarterWorks, everyone can trade with any other trading member of the system.  You do not exchange products directly with each other, rather through the BarterWorks "bank".  This eliminates problems such as one party not wanting something the other party has, and one party feeling "cheated" or coming up short on the transaction.  With BarterWorks acting as the bank, trade dollars are exchanged - not products or services.  Additionally, BarterWorks office partners up with your company, thus saving you the time of securing trades on your own.
 
WHAT IF I CAN'T SPEND MY BARTER DOLLARS ON THE THINGS I WANT THE MOST?

BarterWorks works very hard seeking out new members to be a part of our system that other members have either requested or referred.  BarterWorks credits a members account $100 in cash for referrals that join the system.  This helps everyone.  C'mon - everyone know a business that would make a good candidate to barter - why not refer them!

HOW CAN I SPEND MY BARTER?
Make a list of your needs. List everything you normally spend cash on. Do not limit yourself to one or two time item purchases. Use your checkbook as a memory tool. Also, think of your personal needs. If you regularly take cash out of the business for personal living expenses, travel or home improvements -- you should consider using the trade income you have accumulated, and save your cash for goods and services the barter network cannot easily acquire.

Additionally, BarterWorks is committed to continually look for avenues to better itself and the items available to our members.  Recently we have linked up with World Trade Banc which offers a plethoa of goods and services available all over the United States as well as internationally.  How much easier can it be than to shop from your computer - using BARTER?

WHAT IF I EARN MORE BARTER THAN I SPEND?
Ideally, members should always be on the "lookout" for new products and services that they need through the barter system.  Afterall, you joined with the intention of saving your cash!  Some members make a sale and immediately look for something to purchase.  Others will "bank" their trade hoping to utilize it on a rainy day.  That is your choice.  However, by just selling into the system and not purchasing, it makes barter work only 50% for you.  Why not be more proactive and gain 100% barter benefits by purchasing items as well!

HOW DO THE OTHER MEMBERS FIND OUT ABOUT ME?
One of our jobs is to promote your business to other members. BarterWorks can help promote your goods or services to other members via our directory, email broadcasts, website access and our member mixers.

WHAT IF I NEED GOODS OR SERVICES AND I DO NOT HAVE ENOUGH BARTER TO MAKE THE PURCHASE?

Trade credit lines can be set up for members just as a bank extends credit to its qualified customers. When joining Barterworks, you will be reviewed by our experienced team and assessed a credit line. Over time, your credit line may increase depending on your timely payment and need for extra credit.
  
WHAT OTHER WAYS ARE THERE TO USE MY BARTER?

Many members use trade credit to pay employee bonuses. Some members pay their employees a portion of their salaries in trade credit. At your request, we will set up employee sub-accounts and will assist your employees in using their trade credits as advantageously as possible. Employees need not pay a 10% brokerage fee. This fee can be prepaid when a member transfers credit to a sub-account. It is also possible to pay some of your bills with trade credit. We can help your creditors spend their trade dollars effectively. Paying bills with trade credit is just one more creative way to use your trade credit. 

Barterworks can even use trade credit to collect past due accounts. Often, a business that owes you is willing to pay on their account with goods or services. If their goods or services are acceptable to Barterworks, we will purchase them in the amount equal to your account. We will credit your Barter account for the amount of your Debtor's delivery. You can then use that credit to obtain goods and services. 
  
WHAT IF I CAN NO LONGER BARTER...WHAT HAPPENS TO MY DOLLARS?

Any member who quits the Exchange is given three months to spend their trade dollars. Extensions are usually granted for members with large balances.
  
ARE THERE TAX ADVANTAGES TO BARTERING?

Trade income is the same as cash income for tax purposes. There are no inherent tax advantages. Trading should be considered a marketing tool, not a tax tool. As with cash income, trade purchases that are business related are tax deductible.
  
HOW DO I KNOW HOW MUCH BARTER INCOME I HAVE TO INCLUDE ON MY TAX RETURN?

At the end of the year, Barterworks will total your trade sales and submit this information to the IRS on form 1099B due to the IRS at the end of February.  Barterworks will also have the information on your year end (December) statement.  Total Sales Year To Date is the number that will be reported to the IRS.
  
WHO DECIDES WHAT PRICE THE SELLER WILL CHARGE ME?

Members of Barterworks are expected to trade their goods and services for barter at the same price they would sell them for cash. Violations of this may lead to expulsion of that member.

WHAT DO YOU DO IF A MEMBERS PRICE IS HIGHER THAN I FOUND A CASH PRICE?  DO I JUST PAY THE HIGHER PRICE AND USE MY BARTER?

In the event of this, you have to consider how much you actually invested for the trade credit you hold on your account. If your merchandise costs you fifty cents on the dollar, $10,000 worth of trade credit actually costs you $5,000. If you are a service related business, your trade credit may only cost you idle time. Always remember that you are using your goods and services when making purchases with trade credit, not your cash. It will often be less expensive to pay a little more with trade credit than to get the same article at a little less price for cash. Seasoned traders are always aware of this difference and use it to their advantage. On the other hand, if someone overprices their products or services beyond a reasonable limit, do not do business with them. Instead, call our office for another referral (if one is available) and we will address the situation with this member.  BarterWorks absolutely will NOT tolerate price inflating.

CAN I EXCLUDE SOMETHING FROM MY INVENTORY FOR SELLING ON BARTER?

Yes. You should only trade what you want to trade. The idea of trade is to move excess inventory, which gives you an advantageous profit margin. Reasonable, specific restrictions on certain goods or services are data based by Barterworks to maintain a smooth trading environment.

I HAVE HEARD THAT BARTER IS ONLY GOOD FOR SERVICES AND NOT GOODS.  IS THAT TRUE?

Barter is obviously best suited to high-margin situations in the marketplace. Margins are highest where businesses trade only their time or where there is an excess capacity such as undersold radio time, hotel space or idle equipment. However, barter can also be used to acquire goods at regular prices if margins are adequate.   In looking around the Mall, you can see a lot of hard goods that are available to you on trade.

CAN MY BARTER DOLLARS BE SPENT WITH OTHER BARTER COMPANIES?

Absolutely! You may spend your trade credit with any trading member that belongs to our national trade network, The Trade Alliance (TTA), an international trade network with many barter groups. This gives you the ability to spend your trade credits with ten’s of thousands of other members worldwide. You may take cruises, golf in Scotland, buy an Euro-Rail Pass, or just go eat at a restaurant in Los Angeles while you on a vacation there; or stay at hotel with your trade credits. Arrangements must be made in advance through our office.
 
HOW DO I GET STARTED?

When you ready to begin, either call us or click on Join Here.  We will get a notification of a possible new member, and a broker will call to meet with you. They will discuss with you what you want to trade and how you will spend your trade credits. At that time, you will pay your initiation dues. A member of our staff will walk you through your first sale and continue to suggest ways for you to benefit as a member of BarterWorks.

REMEMBER:

Every new customer you service after you have met your fixed office expenses (payroll, rent, utilities, etc.) is profitable. Providing your products and services for even a few new customers after basic expenses are met can make a big difference to your bottom line.