Frequently Asked Questions
What is barter?
Barter is a way of transacting business without the use of cash. You can buy what you need and pay for it with goods or services that you are willing to trade. There is an immediate increase in cash flow when you trade for an expense that would otherwise be paid for in cash.
What are the advantages of trading?
Bartering produces new business, and allows you to expand your market beyond your cash paying customers. Trade also conserves cash. Instead of spending cash to purchase goods and services such as auto repair, printing and many other items or services, use trade credits instead. Bartering also monetizes your underused or unsold resources. Your excess time, talent, inventory and capacity can all be converted.
What major companies are involved in barter?
Did you know that Carnival Cruise Lines originally started with one run down ship then bartered cruising time with tradesmen to do the repairs? They also traded print advertising and bartered radio airtime to promote their new company Approximately seventy-five percent of Fortune 500 companies engage in barter.
How does trade work with the association?
Our barter associates use trade credit instead of cash, for transactions. If a client trades $500.00 dollars worth of products to another client, he will receive that amount in trade credit which can be used for purchases from other trade members. Items such as restaurant meals, printing, salon services, hotel stays, office supplies, as well as thousands of other products and services, can all be obtained with trade credit. We are simply a third party record keeper, that sends statements to all clients showing their current and monthly trade balance.
I already trade with friends on my own. Why join East End Barter Association?
The problem with one-on-one or peer to peer trading is that each business must want what the other has to offer simultaneously. When you join East End Barter, each can deal with anyone in the network, at any time with over 10,000 (and growing) traders across the US and globally. Your trade credits can be spent just like cash.
What if I cannot spend my trade credit on the things I need?
Our job is to find items or services for you whenever possible. As new reputable businesses are solicited to join the Association, only those who can fill the needs of our current clients are approached.
I need cash paying customers
We personally consult with you on how to receive the most benefit from East End Barter. We ask that you give us a concise list of your current and future needs. Your list will allow us to focus on targeted needed items, services or supplies. This will allow us to show you how to spend your trade dollars wisely and how to budget your trade dollars efficiently. We guarantee that East End Barter will bring in more cash paying customers, immediately improve your bottom line. and give you and edge over your competition.
What if no one wants to trade with me?
This should only be a temporary problem if your products or services are marketable. The amount of business, will depend on your particular type of item or service along with normal supply and demand factors. If you are not receiving as much business as you desire, the Association may also be able to help you by promoting your products and services.
What if I earn more trade credit than I can spend?
Clients should trade only in proportion to their ability to spend the trade credit earned. . When you reach your limit, East End Barter will stop referring customers until you are ready to resume trading.
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, and you may also use trade dollars for employee incentives. Stop using company cash, and reward your employees by using your trade dollars. Give your key employee(s) a night out to dinner, a show, or a vacation... the possibilities are endless.
I'm looking for a new Ipad. Can I purchase this item through East End Barter?
Saving trade credit to purchase a very specific high demand item can be frustrating. To receive the most benefit from the Association, each client should provide our staff with a concise list of needs and wants. Members should read the daily trade floor email sent each morning. New items are posted every day and high demand items come and go quickly. We can certainly find most items that you need, some high demand items that you want, such as an Ipad, may or may never become available.
What if I quit East End Barter? What happens to my trade credit?
According to our trade rules, any client who quits the Association must pay cash fees in advance and should spend the remaining credit in a reasonable time.
What does it cost to get started with East End Barter Association, LLC?
For a limited time the membership fee will be waived for charter members. Other fees do apply. The regular annual membership fee is $150.00.
How does the Association make money?
There is a 6% transaction fee on sales and purchases. This represents a fee for generating new business for clients of our exchange network. Most business owners feel justified in paying a small percentage to acquire new business. This fee is the main cash producing vehicle, necessary to keep the exchange operating on a financially responsible basis.
Are there any tax advantages to trading?
There are no tax advantages or disadvantages. Trade income is treated the same as cash income for tax purposes. Trade purchases that are business-related, however, are tax deductible just like cash transactions.
What about taxes and ther IRS?
At the end of the year the Association will tally your trade sales and purchases for your records. This information will also be submitted to the IRS as mandated on Form 1099B.