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Frequently Asked Questions
What is a trade/barter exchange?
- A trade/barter exchange is a local network of members who trade products or services for other goods and services without the exchange of money.
- An exchange eliminates the limitations of one-on-one bartering, where each business must want what the other has to offer. By each member earning the retail value of their product or service in their Trade Winds Exchange account, they are able to spend with any member, thus increasing the flexibility of every transaction.
- An exchange functions as a broker to locate the products and services clients currently seek.
- An exchange is also a third-party record keeper, providing monthly statements to all members, reflecting all trade transactions.
What are the benefits of trading?
- Clients of an exchange use trade dollars instead of cash to complete transactions, increasing cash flow, sales and profits while reducing cash expenses, moving excess inventory and filling idle production time at full retail value.
- Gain additional business.
- Generate new cash-paying customers.
- All prices quoted to barter clients are the same as prices quoted to cash-paying customers (retail). Barter is simply a mode of payment, just like a credit card or cash, but with many more advantages.
- Our clients see the vision of using barter first, purchasing by cash or credit as a distant second choice. They are continually expanding their clientele and receiving new leads and referrals, as well as new cash-paying customers.
- Acquire important assets or perks for personal use, staff or clients that are not budgeted.
How can I spend my barter dollars creatively?
- Barter is an excellent tool for not only the day-to-day necessities of running a business, such as printing and accounting services, but also as a way to reward and motivate employees.
- Give more back to your customers!
- Chiropractic physicians, health spas and counseling are additional employee benefits available on barter.
- Seminars and employee training are among many of the services utilized by companies today.
- Purchase many overhead costs in barter by utilizing professional services, such as legal, accounting, counseling, training, and payroll.
- Turn trade dollars into cash.
How is my business marketed?
- All members are listed in the monthly directory.
- Members will receive the "HOT Now List" sent via fax or e-mail monthly, advertising special, timely promotions our clients wish to move quickly.
- Through our "Get Wired" program, referrals and tip leads for membership will be rewarded with instant advertising for our clients making referrals, and also with trade dollars credited to your account if the referred business joins Trade Winds Exchange.
- Regional and national exposure and trading power will be available through our national affiliations with NATE and IRTA.
- Distribute your flyers and brochures through our direct mail campaigns.
- Trade Winds Exchange is your personal broker for additional trade and cash business, continually promoting your products and services and recruiting new, resourceful companies that offer the goods and services you seek.
- Members are encouraged to stay in close contact with their broker, siphoning customer service feedback and information about the products and services required.
I already trade directly on my own, why should I join a trade exchange?
- One-on-one trading requires that both parties exactly meet the needs of the other. With Trade Winds Exchange there is an entire network from which to choose to spend your trade dollars.
- One-on-one trading opportunities are limited to individual contacts you possess. When joining Trade Winds Exchange your company will be marketed as mentioned above.
What is unique about Trade Winds Exchange?
- Trade Winds Exchange is the only locally-owned and serviced barter exchange in the Canton and Wooster, Ohio area. Many other exchanges are national in scope with a local representative, who is not able to saturate an entire locality, as their time is split on several territories.
- Trade Winds Exchange is not an internet-driven barter exchange. We are a local exchange. Although we do utilize the internet for our members, we will continue to rely on personal communication and care for our clients.
- Members receive regular visits and contact with their broker. It is the broker's personal responsibility to market their clients and to continuously recruit new businesses with the requested products and services of those clients.
How does the IRS view bartering?
- There are no inherent tax advantages or disadvantages to bartering legally.
- The IRS views barter exchanges as third-party record keepers, in which they have the same reporting requirements as banks and stock exchanges.
- Monthly statements of trade activities will be sent to all members, as well as a Form 1099B at the end of each year. A copy of the client's Form 1099B is also sent electronically to the IRS, as required by law.
- Trade Winds Exchange recommends that you consult a qualified tax consultant for further advice.
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