Why Barter? Because barter works!
Businesses gaining incremental sales and increased competitiveness through the trading of products and services in the BarterWorX network.
More Cash - More Customers
When a business barters something that would usually be paid for in cash, the business has just saved cash and cash saved, is cash earned. Bartering allows you to expand your market and maintain your cash paying customers. For example, if you owned a hotel you can barter vacant rooms and use your barter dollars to purchase a new computer. Theaters, concert halls, restaurants, event centers etc, can fill otherwise empty seats with barter members. Retailers can move excess inventory. Service providers can fill otherwise empty hours. Barter members are new customers that bypass competing businesses to do business with you while you maintain your existing cash customers.
Expand your network
In addition to the BarterWorX network, your business will be exposed to members of other barter companies. Our software system allows members to search for products and services exclusively in the BarterWorX network or with all participating barter companies. For example, if you need a chiropractor, you would search locally but if you wanted to take a vacation, you would search globally.
BarterWorX will hold mixers so business owners can meet and promote their products and services. As the BarterWorX network grows, there will be trade show opportunities as well.
How does it work?
A barter company, also known as a trade exchange, eliminates the restrictions of one-on-one trading where each business must want what the other has to offer. Clients of an exchange use barter dollars, instead of cash, to handle their transactions.
Here is a possible scenario…Dan of Chambers Jewelers hires Rick of Hand-It-To-Me to do some carpentry work. Rick does not necessarily have to buy jewelry from Dan. Dan’s account is debited barter dollars (also known as trade credits) and Rick’s account is credited. Now Rick can spend his barter dollars anywhere in the network. Rick chooses to buy some lobsters from Oyster River Lobster and he spends the rest of his barter dollars at Plants Unlimited. Now both Oyster River Lobster and Plants Unlimited are credited barter dollars. Oyster River spends theirs with Tammy Swasey-Ballou for her bookkeeping services and Plants Unlimited spends their credits at the Boathouse Restaurant and at Chambers Jewelers. Chambers Jewelers hires E. Stanley Photography and the cycle continues…
How is all this tracked?
BarterWorX uses a sophisticated software system that makes trading easy. It is much like online banking. Transactions can be authorized online or by our automated telephone systems. Barter Dollars are debited and credited on accounts. You don’t actually use paper barter dollars with the exception of restaurants. RestaurantsMembers can purchase barter dollars in various denominations for restaurants by calling BarterWorX. Dining Dollars are much like gift certificates. Tax and gratuity are not included. Members are expected to tip at least 18%. No cash is returned so if your bill is $49.78 and you give the restaurant $50 barter dollars, you do not receive the 22 cents in change. Restaurants typically accept dining dollars Sunday through Thursday unless it is a holiday. Visit the BarterWorX website (coming soon) for specific restaurant limitations.Can any businesses put limitations on the bartering?Yes, although not all barter companies allow it. BarterWorX wants everyone involved to benefit from bartering. It is meant to enhance your business. Examples of limitations might be an auto mechanic bartering labor but not parts or a retailer limiting the amount of barter dollars to be spent in a given time. Limitations should be to protect the business but not so strict that it is not appealing to others.
Is a barter dollar equal to a cash dollar?
Yes. Barter is simply a mode of payment just like a credit card or cash. Barter members should not bump up the price because it is a barter transaction.
Can any business join BarterWorX?
No. Everyone is welcome to apply but businesses must be approved by BarterWorX.
What does it cost to be a member of BarterWorX?
Monthly maintenance fees are 6 cash dollars and 6 barter dollars. Transaction fees are 6%. There is a one-time membership fee. As long as members are in good standing they can remain a member for life with no renewal membership fees.
How do we pay?
When you have been approved and sign up to be a member, the membership fee is due. Maintenance and transaction fees are charged to your credit card monthly.
What about taxes?
Bartering is taxable. BarterWorX will send you a 1099B.
Globally, over 470,000 businesses are involved in Barter. It is estimated that 65% of Fortune 500 companies engage in barter to one degree or another.
Still have questions? Please email us or call us at (207) 542-1665 and we'd be happy to answer them.