Frequently Asked Questions
What is Smarter Barter?
Smarter Barter is a barter exchange that has evolved to embrace the benefits of traditional barter exchanges, as well as making it possible for all types of businesses to participate. Our unique Trade Ratios allow members to cover their cash cost of each sale by charging this as the cash component of the sale, with the trade component equal to the normal profit margin. This allows members to generate Trade dollars at no cost.
Who can join Smarter Barter?
Any business owner, whether in retail, or offering a professional or trade service.
Any individual who has a product or service to advertise in the “Garage Sale.”
How will my business benefit?
- You become a member of a select group of businesses and individuals that prefer to trade with you because you save them cash
- Your sales increase
- Your cash flow increases
Your customer base increases, and expands geographically (members will travel further to you because you save them cash)
These new customers, through word of mouth, will help promote your business to new cash customers
You use your Trade dollars to pay for goods/services you would normally pay cash for, both for your business and personal use
You use your Trade dollars to generate new cash customers by paying for advertising, promotions, etc on Trade
Pay employees bonuses and incentives in Trade dollars
We act as an extension of your sales team, supplying you new customers you normally wouldn't have seen
As a Smarter Barter member, you also get:
Five free internal web pages within Smarter Barter's website to advertise your business
An interest free line of credit for businesses to start you off
On-line real time authorisations 24/7
On-site help with initial set up if you need it and on-going support from us
Invitations to networking functions/ special events
Why use Trade dollars instead of cash? Why not?
You have generated Trade dollars at little or no cost
Your Trade dollars can be used to pay for products/services you would normally have to pay for in cash
You have increased your cash flow by preserving cash
How much does it cost to join? Nothing!
We charge no 'join up” fee, no administration fees EVER for the first 500 business members.
We make our money by charging a cash commission on the Trade component value of each sale to both parties.
Part Trade Members are charged at 5% +GST of the trade value
Full Trade Members are charged at 3% +GST of the trade value
Bottom Line - YOU WLL ONLY PAY US IF WE ARE MAKING AND SAVING YOU MONEY! We generate new business for you, but only make money if we can find ways for you to save yours!
I have heard Barter is full of overpriced goods?
Old style, traditional barter exchanges insist on 100% Trade. As such, their members often have to inflate prices to make the sale viable. Every Trade dollar costs cash to generate. They are understandably trying to maximise their return on costs. With Smarter Barter's Trade Ratios, members already cover their costs, so there is no need to inflate prices.
What if a Member inflates their prices?
Please advise us if you believe this is happening and we will investigate. We all want a 'level playing field' to maintain the integrity for all. If a member does not abide by the Terms & Conditions, their membership will be subject to suspension or termination.
Can I sell used products on Trade?
Yes. The product should be described as 'used', be in good condition, and priced at a fair market value.
I have been told it is hard to buy many products on Barter
It has until now. Old style barter reliant on full trade makes it almost impossible to buy a new washing machine, sofa, or bicycle etc on full Trade. With our Part Trade ratios Smarter Barter opens up many ways to spend Trade dollars previously out of reach.
Can I halt trading?
Yes. There may be times when you are too busy with your cash customers to handle Trade customers. Let us know, and we will put your status on hold until you are able to resume trading.
Do I buy or sell first?
It's up to you. You will receive a business interest free line of credit on joining, so you can purchase up to that limit immediately. When you sell your goods/services, you are paying back that line of credit, in the same way a bank's credit card works. The difference is we don't charge interest! Alternatively, you may find instant demand for your products/services, as we will advertise you prominently both on line, and face to face with prospective members.
How do I sell and advertise my business within Smarter Barter?
Once you have joined Smarter Barter you will have your own personal profile to advertise your goods or services within our 'on-line shopping mall' simply by downloading your images and details of the item. You can also create a five page personal website advertising your business, and be part of our business directory. Fellow business members can contact you via internal email, which will also be sent through to your own email address. All sales are notified immediately via your personal email address. Full assistance in the initial set up of your profile and website can be organised on-site with one of our customer service representatives.
How should I price my goods/services?
Select the trade ratio whereby the cash component is closest to your cash cost of the sale, and the Trade component is equal to your normal profit margin. If your cost of an additional sale is small, you can sell at 100% Trade, benefiting from a lower commission rate, and increased desirability for your goods/services.
Why are 100% Trade Members charged 3% commission on Trade sales, whilst Part Trade Members are charged 5%?
Part Trade Members cover their costs with the cash component of the sale, whereas 100% Members will always have some cost in generating their Trade dollars; the reduced commission is to compensate for this.
Part Trade members are able to sell their products/services on 100% Trade online e.g. to clear excess stock etc, and will be charged at 3% commission for that sale.
Can I vary my Trade Ratio?
Part Trade Members can vary the Trade Ratio at a product/service level, for example a retailer of electrical goods may sell plasma TV's at 60/40, and heaters at 50/50 because the profit margin on TV's is less due to demand and competition. Full Trade Members cannot vary their Trade Ratio, but benefit from a lower commission rate.
How Does Smarter Barter make Money?
We make our money by charging a small cash commission on the Trade value of each sale of between 3% and 5% plus GST.
Part Trade Members are charged 5% plus GST on sales and purchases, or 3% + GST on sales at 100% Trade.
Full Trade Members are charged 3% plus GST on sales and purchases.
How does Tax work with Smarter Barter?
Trade dollars are treated the same as cash dollars by the ATO
GST of 10% is payable on all trade transactions, and like cash, are deductible when purchasing. For more information visit www.ato.gov.au.
Smarter Barter supplies the ATO with records of all transactions in the same way a bank or stock exchange does. You will have all your account history accessible by yourself on the Smarter Barter website to assist with record keeping.
Can I buy real estate on Barter?
Initially, we will establish a healthy community of small businesses in geographically reachable areas. As we grow, a greater variety of ways for you to spend your Trade dollars will result. Real estate is definitely a goal for us, but it has to be handled correctly. It is essential that when we offer real estate for sale on a part trade basis, the price will equal normal full cash price. We will NEVER allow inflated prices or make false promises for our members, but feel confident that when real estate is introduced, exceptional opportunities will be available for all. Two of our principals have specific backgrounds in real estate and residential developments.
How do referrals work?
For every business referral you send us, Smarter Barter we will give you $100 Trade dollars once they become operational members. It is important that they are aware of your nomination, and want to find out about us. Your referrals are greatly respected by us as they endorse your satisfaction with Smarter Barter and the benefits.
What happens if I buy, but nobody wants my products/service? Will you charge me cash?
No. Provided you offer your products/services for sale at a fair market value to fellow members, we will do everything possible to promote you. As long as you're not selling tickets on the Titanic, we'll bring you new business! We don't penalise members trading in good faith.
How do I get started?
Simply click on FREE TO JOIN on the Smarter Barter website and fill out our simple online application. Immediately you can add at least 2 advertisements to allow us to process your membership and if successful, will issue you a starter kit, your own Smarter Barter membership card, and an interest free line of credit to get you started.
Why do I need to place at least 2 advertisements to become a member?
Until you place advertisements, no one will know you exist! The Member Directory is generated from the categories you advertise in, allowing you endless opportunities to promote your business and reap the rewards!
What are the benefits of advertising my goods/ services on Special?
We encourage all members to promote special offers to fellow members by giving them 'top billing' in their related categories, inclusion in the 'Specials' section on the front web page, and further exposure in our 'Smarter Deals' emails. It's a great way to be in control of your own marketing, fill in down time, clear slow moving products and generate Trade!