Why Barter?Bringing You a Better Life Through BarterThe most important challenge facing your business today and in the future is to maintain a competitive edge. This means rethinking the standard way of doing business. It also means exploring new sources of revenue. Conserves cashThat's right. Every time you complete a trade transaction, you did not have to pay cash out of your pocket for that item. Cash is the life of a business and without a positive cash flow, a business cannot survive. So by bartering, you can conserve cash for the items you cannot trade for. Gets rid of surplusPlenty of companies have surplus lying around that they cannot liquidate. This is stale merchandise that is only COSTING the company money. It is costing money in taking up space that could be used for sellable items. Things that won't move in the cash world have every chance of moving in the trade world. So now you can get rid of the things you don't need, by trading them for the things you do need. Lowers downtime and unused capacityWhen a hotel room sits empty, it isn't making anyone money (and in some cases is actually losing the company money!) With barter and trade, a company can fill the rooms with clients, and create trade dollars that can be used to purchase more needed items, making it a double win situation for the business. Creates more customersWhat someone may not be willing to pay cash for, they may be willing to trade for. Many companies utilize leverage in creating trade dollars, therefore the $1 they spent, did not cost them $1 to create, so they are leveraging their time and resources into larger amounts, that benefit them better in the long run. Creates cash sales and transactionsLike in the example of the hotel, though they may pay for the room with trade, the room service, the valet and the numerous others amenities they use in the hotel they pay cash at. Which is bringing more cash into the business than would have originally been there than if the room sat empty. These cash transactions of course help with the cash flow of the business and in turn help the business survive. Purchasing PowerAll of us will agree that cash is no more than a means to an end. When it comes to making your purchases, the form of payment is unimportant. Using your goods and/or services is an excellent way to make the purchases you and your business need in both good times and bad. Local Value Card Alliance brings the benefits of business to business barter to hundreds of local businesses that your business will profit from. These loyal clients have made us the largest and one of the most exclusive exchanges across the state of Arizona. National With Value Card International Barter Alliance, you are connected to the largest barter marketplace in the world. With over 150 exchanges, 40,000 plus members and more than $400 million in goods and services available, your business is sure to profit locally and around the world. How Does Value Card Alliance Work?Value Card increases profits by utilizing excess capacity to generate incremental business, reduce cash expenditures and fund unbudgeted expansion. This is accomplished without making any changes in how you do business. All you will do is add an additional form of payment. If you accept cash, check. Why Value Card Alliance is So ProfitableA Clothing Store has an average mark-up of $100%. For example, the wholesale cost of a jacket is $100. The regular sale price is $200. The Clothing Store wants to run an advertising campaign with a budget of $5,000. Methods of payment (before joining VCA):
After the Clothing Store joins VCA: The clothing store owner now makes $5,000.00 of NEW retail clothing sales through the Value Card Alliance system. These new sales allow the clothing store owner to purchase the sign WITHOUT THE USE OF CASH. What are the savings to the Clothing Store by using Value Card Alliance?
NEW NET PROFITS CREATED BY USING VALUE CARD = $1,750 How does this affect my taxes?One of the most important considerations about barter is that the IRS deems barter transactions to be taxable events. The fair market value of products or services you receive via barter must be reported as income to the IRS. This may result in income, self-employment, or excise tax liability, as well as capital gains or losses. If you make transactions via a barter exchange, you should receive a Form 1099-B from the exchange that details your barter activity. |
