Answers to the most commonly asked questions

How does barter work?

• Members of WNY 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 WNY Barter account. For example, if a web designer barters $1,000 worth of service to a car mechanic through WNY Barter; that mechanic can now buy $500 of advertising, $50 from a restaurant, $250 for an accountant, and $200 for landscaping or build up credit for a boat and a boat slip. And as a member of WNY Barter, you have the ability to buy or sell goods and services with a continually growing network throughout the US and Canada.

Who can barter?

• Any business that sells a product or performs a service can apply for membership in WNY Barter. We also ask for at least 2 business references, since we will only allow the best companies to join WNY Barter. We're not looking to fill up our membership with companies that over-charge barter members. WNY Barter is simply looking for those companies that understand how barter can help improve sales.

Why would I want to accept WNY Barter dollars instead of cash?

• You’re not accepting barter dollars instead of cash. You’re gaining 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 WNY 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.

You want me to pay cash for my products and sell it for barter dollars?

• 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 and gas bill with WNY Barter?

• The cash you save by using WNY 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 WNY 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.

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 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).
  
  
• 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.

Do I have to pay income taxes on the sales I make with WNY Barter?

• Barter exchanges are required by the IRS to report all sales at the end of the year. If you're an individual you will receive a 1099B at the end of the year. Corporations use their December statement to show income. 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.

Does WNY Barter provide support?

• We provide a personalized experience in all we do. You will have a dedicated broker to help you with all aspects from using the website and entering your first few items into the trade floor to fulfilling specific needs and requests. We also 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.

Can I sell an item for part cash, part barter?

• The short answer is no. WNY Barter guidelines state the first $1,000 of a transaction must be 100% barter. The amount over $1,000 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?

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.

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 WNY Barter reports all income to the IRS as required by law.

How do I cancel or close my account?

• Your satisfaction is our priority. If you are unhappy for any reason, please let us know immediately and we will try to solve the problem. If you remain dissatisfied, you may terminate the agreement within ten (10) days written notice to WNY Barter. Immediately upon termination, all cash and trade dollars outstanding become due and payable in cash.
  
  
• If you sell or close your business or have a negative balance with no items to trade, you have 120 days to zero the balance.

Do we accept referrals?

• We gladly accept referrals but do not and will not take your cash customers from you.
  
  
• If you have a company that you would like to do business with and have not done business with in the past, we will do our best to get them signed up and will give you a $100 barter credit for every business that becomes a WNY Barter member.
  

If you have any unanswered questions please call or email us.
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