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Q. What are the advantages of bartering?
A. Bartering is a
great tool for companies to expand their client base, purchase
what they need without having to use cash and save time and hassle collecting
payment for completed work. For more information, see
About Barter.
Q. How does the system work?
A. In a trade exchange, members are not limited to the constraints of
trading on a
one-on-one basis. Instead, they can buy and/or sell with any member in the
group and receive payment in “trade dollars” instead of cash. The trade dollars
earned is credited to the seller’s VTE account, which they can then use to pay
for goods and services that they wish to purchase. For more information, see
How it Works.
Q. I barter on my own. How will my business benefit
from VTE?
A. There are many advantages since bartering through a trade exchange
offers far
more options and safeguards than traditional bartering. One of the primary
differences is that in the traditional one-on-one trade, it typically takes time
to
research and find a partner who has what you need and is equally interested in
what you have to offer in return. As a member of Velocity Trade Exchange, your
business has easy access to hundreds of products and services available on
trade;
it’s easy as a few clicks of your mouse or a quick phone call to our office. For
more
VTE benefits, see
Membership Benefits.
Q. How will I know if VTE is right for my business?
A. Velocity Trade Exchange provides a free consultation to assess if a
VTE
membership is likely to meet your specific needs. We will be candid if we do not
feel it is a right fit, as it does not behoove us, nor our members to bring in
new
members who don’t feel they’re getting a value from their membership. For more
information, see Is VTE Right
for Me?
Q. I own more than one business, do I have to pay fees
for each?
A. No. The parent company will hold the primary account and pay the
application
fee and the monthly accounting fees. Each subsidiary company will have a
subaccount and will be listed in the Member Directory separately. Members will
have the option to pay all of the cash commission / brokerage fees from the
primary account or to have each subsidiary company pay them separately.
Q. How does barter help with cash flow?
A. When your business sells products or services to another exchange
member,
your VTE Trade Account will be credited immediately upon completion of the sale.
The trade dollars you earn are instantly available to make purchases from any
other VTE member.
Q. Can a VTE Membership also help me build more cash
business?
A. Absolutely. Use your trade exchange earnings to pay for advertising,
marketing
services and business promotions. Take customers to dinner on barter. Use trade
dollars to cover the cost of corporate functions and gifts. Take advantage of
the
opportunities provided to VTE members to network with both trade and cash
prospects. Provide your trade exchange clients with excellent customer service,
opening the door for additional new cash customer referrals. See
VTE Membership
ROI Demonstration.
Q. Are there Tax Advantages to bartering?
A. There are no tax advantages or disadvantages to buying and selling
through
barter as opposed to cash. Barter income is the same as cash income for tax
purposes. As with cash income; however, charitable contributions and business
related purchases paid with trade dollars are tax deductible. At the end of the
year,
VTE totals your barter sales and submits this information to the IRS on the form
1099B. You are also mailed a copy of this form for your records.
Q. How will I know what products and services are
available through VTE?
A. There are number of ways you can stay abreast of what’s available. For
most
clients, the easiest way is by browsing the online membership directory, which
is
updated daily. If you have a specific purchase in mind but don’t have the time
or
ability to look it up, you can also call our office and we will look it up for
you. If you
want something that is not immediately available through the current membership,
let us know and we will get to work to recruit new local members that fit the
bill and
/ or we will find purchasing options from reciprocal exchanges nationwide.
In addition, VTE keeps a profile of “haves and wants” for each member. When a
new member joins, we will facilitate a personal introduction to all members
whose
profiles coincide with the haves and wants of the new member.
Q. How soon should I expect new business after I become
a member?
A. This will largely depend on how much demand there is amongst current
members for the products and services that you offer. VTE’s targeted marketing
strategy will provide most new members with opportunities to gain new business
almost immediately.
Should your business be an “outlier” of the current demands of the membership,
we will make you aware of this before you join. This only means that we will
need
a little time in beginning while we recruit companies that need what you offer.
In
the meantime, you are granted an initial trade dollar credit line that you can
use to
make purchases.
Q.
Do I have to accept 100% trade dollars on every
transaction with VTE Members?
A. No, VTE members have a couple of control options related to cash /
trade splits.
First, VTE members can restrict low profit margin products and services from
being available on trade; restrictions are clearly listed in the membership
directory
to prevent any misunderstandings.
For non-restricted items, members can limit the amount of trade dollars they
accept per transaction (with a $500 minimum); this information is also clearly
listed in the membership directory. Keep in mind, however, that a very
restrictive
membership reduces the benefits that your membership provides. Your VTE
representative will help you construct an arrangement that meets both your needs
and the needs of current members.
NEXT PAGE >>
Copyright © 2007 Velocity Trade Exchange, LLC
All rights reserved.
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