Frequently Asked Questions
How does barter work?
Who can barter?
What are the costs?
When are the transaction fees processed?
Why would I want to accept Premier Barter dollars instead of cash?
You want me to pay cash for my products and sell it for barter dollars? That doesn’t make sense.
How can I pay my rent and gas bill with Premier Barter?
How much bartering should my company do?
Do I have to pay income taxes on the sales I make with Premier Barter?
Does Premier Barter provide support?
Can I sell an item for part cash, part barter?
Who pays for shipping?
Why do you ask for my Social Security number or Federal ID #?
Why do you ask for my credit card, debit card or e-check information?
How does barter work?
Members of PREMIER BARTER accumulate barter credits by selling a product or performing a service on barter 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 PREMIER BARTER account. For example, if a newspaper barters $1,000 worth of advertising to a housepainter through PB that newspaper can now buy $1,000 worth of product or services from any participating member of PB, or they may even choose to accumulate more barter credits to make a larger purchase in a future transaction. And as a member of PREMIER BARTER, you have the ability to purchase or sell goods or services with thousands of members of barter groups throughout the US and Canada.
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Who can barter?
Any business that sells a product or performs a service can apply for membership in PREMIER BARTER. We also ask for at least 2 business references, since we will only allow the best companies to join PB. We're not looking to fill up our membership with companies that over-charge barter members. PB is simply looking for those companies that understand how barter can help improve sales.
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What are the costs?
There is a one-time $149 membership fee.
You pay 5%* in cash and 1% in barter for every transaction. There is a monthly fee of $10 in cash and $10 in barter. There are no annual renewal fees.
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When are the transaction fees processed?
Fees are electronically processed everyday using either a credit card, debit card, or e-check that is kept on file with Premier Barter.
Statements are emailed out to you the 1st day of each month.
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Why would I want to accept Premier Barter dollars instead of cash?
You’re not accepting barter dollars instead of cash. You’re getting new barter customers in addition to your cash customers. If you have extra time in your week or excess stock on your shelves, why not accept Premier Barter 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.
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You want me to pay cash for my products and sell it for barter 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.
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How can I pay my rent and gas bill with Premier Barter?
The cash you save by using Premier 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 with Premier Barter. 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 converts to a tool that brings you cash.
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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 n time for a cash customer – take the barter dollars.
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 in the barter store 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.
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Do I have to pay income taxes on the sales I make with Premier Barter?
Barter exchanges are required by IRS to report all sales at the end of the year. If you're all members will receive a 1099B at the end of the year. Like cash sales, there are business deductions you can take when barter dollars were used for business expenses. There may also be deductions you can take on the membership and transaction fees.
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Does Premier Barter provide support?
Absolutely! We start by assigning you to a broker that will set up a website “how to” tour and help you put your first few items into the barter store. Your broker will also check in with you periodically. We have a manual that explains the benefits of bartering, where your business can use barter dollars and how to navigate the website. Online there is a “help” section that will probably have an answer to your question. Finally, you can call our office at anytime or email your broker with your questions.
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Can I sell an item for part cash, part barter?
The short answer is no. Premier Barter guidelines state the first $2,000 of a transaction must be 100% barter. The amount over $2,000 can be split part cash and part barter, all barter or all cash. 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?
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Who pays for shipping?
Sales tax, tipping and shipping is always paid by the buyer in cash. Shipping can be charged to the buyer’s shipper account number where possible. Always get shipping and sales tax up front, before sending out items.
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Why do you ask for my Social Security number or Federal ID #?
The IRS says if you trade $1.00 it is taxable income. At the end of the year Premier Barter reports all income to the IRS as required by law.
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Why do you ask for my credit card, debit card or e-check information?
All fees are processed the day of the transaction using either a credit or debit card or e-check. On the first of each month you are sent an email with a link to your statement. The link is valid for one month. If you need a copy of your past statements, they are always available online.
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