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Last month we looked at the myth, “I won’t be able to spend my Trade Dollars.” There are many myths about what Bartercard is and what it isn’t so they want to set the record straight and dispel any confusion, so this month they will attempt to dispel a couple more myths.
“I can't get my core spends using Trade Dollars.” This one has some truth to it. At the end of the day, some expenses (such as utilities, rent, wages) require cash payment, so it's not realistic for a business to run entirely on Bartercard without cash-paying transactions. This is why they always suggest Bartercard to be on top of existing cash business, and make up approximately 10-15% of your business. Your dedicated Trade Broker Team will work with you in identifying opportunities to spend, and help you source products on trade.
“Everything is overpriced.” Bartercard members sign up to trading terms and the community is self-regulating, so it’s important that members be transparent and promote services fairly to the network. If a member decides to offer services at part cash-part Trade Dollars, the community will soon spread the word and that member will find they’ll struggle for business.
There have been a number of changes to the New Zealand legislation recently around fair trading which impacts businesses and their obligations when promoting and selling goods. Bartercard NZ has provided a helpful guide that addresses these changes to help not only understand the changes but assist members in meeting your legal obligations when conducting business on the Bartercard Trade Exchange. The Bartercard Fair Trading Guide can be found on the website.
“The fees are too high.” Bartercard charges a minimal monthly service fee which is tax deductible. A fee is also charged on all transactions. The average Bartercard transaction fee is 7.5% and they encourage members not to discount their prices. These fees cover provision of a dedicated Trade Broker Team, full e-commerce capabilities, proactive marketing of your business to over 6,000 businesses nationwide, online monthly statements and an interest-free line of credit. Compare this with Daily Deal websites such as GrabOne & Groupon, which charge a fee of approximately 15-20% of the sale price and stipulate that the offer presented must be at least 50% off the original sale price. Although this may initially bring in new customers, these customers tend to be bargain-hunters who are not loyal to your business, and sometimes discounting can have a detrimental impact on your reputation.
To find out more about Bartercard and their barter network, please go to http://www.bartercard.co.nz .