How does barter work?
Members of UWT accumulate barter credits by selling a product or performing a service on trade for another member. That member, in turn, can now purchase a variety of goods and services from the barter credits they have accumulated in their account. For example, if a newspaper barters $1,000 worth of advertising to a housepainter through UWT that newspaper can now buy $1,000 worth of product or services from any participating member of UWT, or they may even choose to accumulate more barter credits to make a larger purchase in a future transaction. And as a member of UWT, you have the ability to purchase or sell goods or services directly with any other member of UWT, and indirectly with other barter groups worldwide.
Who can barter?
Anyone can barter with UWT, either and individual or a business that sells a product or performs a service can apply for membership in UWT.
Are there any fees to barter?
There is no sign-up fee. You pay between 5-10% in trade and each time you sell something. There are no annual renewal fees and no monthly or accounting fees. There are absolutely no cash fees, EVER!
Why would I want to accept trade dollars instead of cash?
You’re not accepting trade dollars instead of cash. You’re getting new trade customers in addition to your existing cash customers. If you have extra time in your week or excess stock on your shelves, why not accept trade dollars? It's just more money that you can spend on your business, as employee incentives or for yourself. And quite often, barter clients will refer cash paying friends and family when they like your service.
Why would I pay cash for my products and sell it for trade dollars? That doesn’t make sense!
There is a cash component or cost of doing business in every business. Bartering is about getting full retail value for your goods or services.
If you are in a service industry where time may be empty, you have fixed costs of rent, electricity, salaries, etc. You pay those costs whether or not you have customers, so why not bring in barter clients to fill those gaps. If you are a retail store that purchased 100 widgets at $1 each and sold 90 of them for $2 each, you’ve covered your cash costs and realized a cash profit. Now you have 10 widgets just sitting on your shelves. You can put them on sale for $1 each in cash and have $10 worth of buying power or make them available for barter dollars (full retail, not sale price) and have $20 barter worth of buying power. You decide.
Restaurants have perishable stock, hotels have empty rooms – you get the idea. And remember, when customers are coming through your doors, they always bring more customers.
How can I pay my rent or buy gas with trade dollars?
The cash you save by using barter can be used to pay for your gas or for rent or any other expenses that might not be payable in barter dollars. For example, you can pay for dental care for your family on trade. The cash you save on your dental care can be used to pay for your gas. Or perhaps you can use your barter dollars to design a new website that attracts more cash customers. Barter can be used as a tool that converts into cash.
How much bartering should my company do?
A good rule of thumb is 10% - 15% of your gross sales per year. You need to maintain a healthy balance between your barter and cash business. There are exceptions to this rule. Example: If you have a warehouse full of widgets you can’t get sell, even at sale prices, it's better to sell more than 10% - 15% for barter dollars instead of selling them for 10 cents on the dollar (cash liquidation prices). Or if you have empty appointments and a barter member wants to fill the spot with no time for a cash customer – take the barter dollars. Something is always better than nothing!
It's best to start out slow and learn how to barter to the best advantage of your business. We help to introduce you to other members, help you advertise on the barter site and promote you in other ways as well. When you’ve earned barter credits, we can work with you to find ways to spend your dollars that make sense for YOU and YOUR BUSINESS.
Can I sell an item for part cash, part barter?
The short answer is no. although there may be some exceptions. Keep in mind when you go to purchase goods or services you will want to pay full barter and no more than the retail cash price. Why do you think a business you are selling to wouldn’t want the same value for their barter dollars?
Who pays for shipping?
Tips and shipping are always paid by the buyer and is generally payable in cash. All shipping arrangements and payment methods should be worked out by the buyer and seller directly. As a rule, you should always get shipping up front, before sending out items.
Make a comment with other questions you have!
